How to Improve Your Auto Insurance Premium as a Commercial Fleet Owner

Managers of commercial truck fleets in Pennsylvania too often fail to grasp the value of telematics-based insurance. Though it is a clear value to private motorists, fleet managers remain in the dark about the return on investment.

When fleet managers discover that a driver has caused an accident, it hinders the fleet's ability significantly. When a driver is unable to deliver goods on time and is assessed a penalty, this raises the fleet's auto insurance costs. If most fleet managers decided to give the responsibility of higher insurance charges that employees caused, they could increase efficiency and likely avoid such misfortune in the future. They could also discuss usage-based insurance with their insurance provider, as it is insurance based on the total distance every driver in the fleet travels, not on the amount the average driver drives. This saves fleets a great deal on their auto insurance.

Drivers who make a living as commercial drivers have their auto insurance needs covered by their employer, except the auto insurance coverage they have for personal purposes. If fleet commercial vehicles were equipped with telematics devices, companies would assess an insurance rate that reflected total distance their fleet of drivers travel, not the average distance traveled. Moreover, if commercial drivers were held responsible for their auto insurance, they would drive more carefully and likely cause fewer accidents.

Though telematics are a luxury or an added expense, they last many years and ultimately redeem their value within a year or two. If owners of commercial truck fleets were to couple safer drivers and telematics-based insurance, they could receive auto insurance discounts comparable to what private motorists receive.