How fleet management software lowers the bar for vehicle insurance

If you’ve ever been knocked back by an insurance company, maybe due to a poor driving record, then you’ll know that it’s not just difficult to get approved but it’s also very costly. In fact, you can pay thousands of dollars more to compensate for what insurance companies refer to as increased exposure or risk.

Have you ever considered suggesting to an insurance company that you’ll use a GPS tracking system? Users of fleet management software often enjoy lower insurance rates because they use GPS fleet tracking. Many insurance companies already offer this as an option, it’s just not that well known.

Not only can GPS tracking help you get approved for insurance but in some cases it can actually lower your premiums too.

How does GPS tracking help me get auto insurance?
GPS tracking can act as a round the clock monitor, providing insurance companies with what is essentially an audit trail of your driving activity. It can monitor anything from speeding violations, hard braking, aggressive accelerating or dangerous swerving.

The device not only records your driving history for playback at a later time, but can also be connected so that an insurance company can monitor your driving in real-time.

Offering to be GPS tracked can mean the difference between having your insurance approved or not.

The reason why GPS tracking is important to insurance companies is because it means they can more accurately assess your risk level. Since the GPS tracker is monitoring many difference aspects of your driving, the insurance company can offer you conditional cover based on you meeting certain requirements such as staying within the speed limit or within a designated area.

With a verified third-party record of your safe driving an insurance company may shorten the probation period and reduce your premiums, as you give evidence of being a safe and responsible driver, thus reducing your risk factor.

Can GPS tracking save me money on my auto insurance?
Insurance companies may offer other discounts if you offer to have your driving monitored by a GPS device. These can include:

• Anti-theft device discount – A GPS beacon can lead to faster recovery of a stolen vehicle, and a much greater likelihood of the car being found.
• Location insurance – Insurance companies often provide cheaper premiums to vehicles that are driven in lower risk neighborhoods. This is generally based on the mailing address of the insured driver however due to it being abused (such as by people using post office boxes or their grandma’s address) some insurance companies will only offer it to those people who have a GPS device where they can verify the vehicle’s actual location. This can also apply to the 10 – 20% discount insurance companies offer for farm-use – vehicles that are only used on farms or ranches.
• Low mileage discounts – Discounts for vehicles driven 3 miles or less a day are commonly applied for by drivers who do a lot more than that, but how can insurance companies know whether they’re legitimate or not? GPS tracking provides verified mileage figures for a vehicle in real-time, backing up a driver’s claim for a low mileage discount on their premiums.

GPS can help get car insurance for teenagers too
When a young person gets behind the wheel of a car, it’s not just worrying for parents. Insurance companies are rightly nervous about teenage drivers who have plenty of bravado but little driving experience. This can make it difficult to not only obtain teenage insurance but to get it at a reasonable rate.

To counter the risk of teenage drivers while still offering cover, some insurance companies are offering GPS tracking devices for parents to install in any vehicle to be driven by their children.

The GPS device offers a verified record of the teenager’s driving and can be used to support insurance claims and demonstrate a young person’s responsible driving.

It can also give parents peace of mind, knowing their teenager’s whereabouts and being alerted, either by email or mobile phone, of an emergency breakdown, speeding or the vehicle being outside of a designated area.

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