Telematics insurance policies first emerged shortly after the millennium. They are also known as Black Box Insurance, Usage-Based driving, PAYG (Pay as you Go) or PAYD (Pay as you Drive). First-time drivers more than likely start with one of these types of policies now. The telematics device that is fitted within the vehicle records the policy holder’s driving habits and advises the insurance company on how the driver is operating the vehicle. This information can be everything from speed, harsh braking, usage time, and miles driven. The insurer uses this information to advise increasing or decreasing the following years premium and even offer bonuses for safe driving.
Ultimately, the goal is to promote safer driving while reducing the likelihood of accident pay-outs by cancelling the policies of those drivers that don’t drive safely. The authorities can also use the data to get a better idea of the situation when an accident does occur.
Telematics insurance policies are becoming more prominent in a commercial setting by the year. Of course, you expect all of your drivers to drive in a considerate and safe manner. However, these devices can provide you with more benefits than just checking up on your drivers.
Keeping Costs Low
The ability to monitor your employees’ driving habits allows you to drill down into the costs incurred through driving. It also enables you to identify ways to lower these costs either through further training on economical driving or through devices like speed limiters. Additionally, it reduces the amount of ongoing maintenance needed by the vehicles, lowering the running costs of the entire fleet.
With the number of portals and software available now to keep track of the locations of your vehicles through the telematics box, you can get a real-time birds-eye view of your entire fleet. For example, if you run a taxi rank, you can view exactly which cars are best suited to pick up which passengers, or if you are a courier delivery company, you can check on the progress of your drivers for more accurate delivery estimates. Additionally, this will offer another layer of protection for drivers who may have been involved in accidents, broken down, or become lost.
Ultimately, safety is one of the biggest benefits of a telematics policy. You’ll be able to ensure that your drivers are adhering to the rules of the road and your company’s standards while also reducing the chances of liability claims and issues. Bluetooth fobs are also available, which link with the telematics box to give you an accurate view of exactly who is driving your vehicles at any time. Again, this is just another level of protection.
Vehicle Health Information
Several telematic systems offer remote access to in-depth vehicle information, one of its most advanced features. You will be able to check on car battery health, vehicle mileage and even engine fault codes. The ability to check on engine fault codes is an incredible tool to have. It enables you to investigate the fault code, purchase the necessary parts for repair and minimise the amount of time the vehicle spends off the road.
For more information about commercial telematics policies, get in touch with a member of our expert team on 0330 995 8447.