Whether you are a large trucking company or a small business that uses vehicles to deliver services challenges you face when it comes to fleet management are likely to be the same. Compliance requirements, maintenance issues, route optimizations and supply chain disruptions can all make the task of effectively monitoring and maintaining the use of company vehicles a daunting task.
In recent years, certain fleet management solutions have risen to the top as some of the most effective for businesses of all sizes and scopes. Telematics, for example, has been identified as one of the most effective fleet management solutions a company can invest in. According to US Government Accountability Office (US GAO)can this method facilitate cost savings by providing fleet managers with information needed to reduce fleet size, fuel use, vehicle misuse and unnecessary maintenance.
Another common problem among companies is keeping claims on the fleet to a minimum.
“Interestingly, one of the most common questions business owners seek is, ̵
6;What can we do to keep fleet claims down?'” said Terry Powers, a retired loss control specialist at Central insurance. “Business owners or managers constantly struggle to minimize losses while maximizing profitable fleet operations.”The answer, Powers continues, is in loss control.
What is Loss Control? Loss control is a form of risk management where you reduce the possibility of a loss occurring or reduce the severity of a loss that may occur by taking proactive measures to prevent it.
When it comes to loss control in this area, regulators should consider one of the dynamic fleet safety management programs on the market today. These tools offer comprehensive safety products as a way to ensure safe operation of the fleet.
Below we break down three of the key aspects of digital fleet management programs and how they directly combat common fleet management issues.
3 common components of the digital fleet management program and their impact on fleet safety
1) Speed cameras
Filing a claim with your insurance agent after an accident is easy when you have an eyewitness who can accurately describe what happened.
Trucks that use safety cameras have the eyewitness observer in the form of a camera that continuously records images of their experience on the road. In addition to front-facing camera options, some vendors now offer bi-directional dashboards that capture both forward-facing road events and driver behavior in the cab.
When an accident occurs, images collected through these cameras can be submitted with a claim to streamline processes and clarify the situation.
2) Driver safety results
Driver safety scores are common among fleet management systems, but many companies use unsophisticated programs to calculate their employees’ scores.
Research shows that tracking miles driven or the number of jobs performed, for example, leads to more reckless behavior from drivers. Instead, today’s modern systems track and encourage positive behaviors on the road—an approach that has drastically improved a fleet’s safety record across the board.
In addition, many suppliers use gamification in the workplace to help drivers adopt safe driving practices. Workplace gamification offers employees rewards and prizes in exchange for good driver safety scores. Rewards can be gift cards, a day off, a free lunch, etc.
3) Fleet Telematics
“Fleet Telematics is one of the most dynamic aspects of any fleet safety portfolio,” said Powers.
Telematics systems are designed to track a vehicle’s speed, location, fuel efficiency, HoS, maintenance requirements and more. When it comes to monitoring driver safety, this telematics can be critical in detecting dangerous habits on the road, such as speeding or aggressive braking, or acceleration.
“The fleet managers I talk to want as much specific real-time information as possible to provide concise, responsive and up-to-date data about the fleet,” says Powers. “Their main goal is to be able to quickly reach out to correct critical issues/actions affecting current fleet operations.”
With a system in place to easily track behaviors and identify patterns, fleet managers are better able to take immediate action and prevent potential accidents down the road.
The impact of a digital fleet management solution on your commercial auto insurance rates
Utilizing a leading fleet management provider can have a significant positive impact on your commercial auto insurance rates. By investing in a tool that helps prevent accidents before they happen and provides real-time evidence to streamline reporting when they do, you can effectively take control of your fleet in ways beyond the average organization.
Want to learn more about how these modern tools can help your organization? Contact your independent insurance agent today to learn more about the product and how to implement it into your fleet management practices today.
The above information is of a general nature and your policy and the policies provided may differ from the examples provided. Please read your entire policy to determine your actual coverage.
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