Many new technologies are on the rise and they are responsible for lowering transportation costs. Fortunately, many of today’s technologies aren’t as expensive as they used to be and are easy to install.
This is a win-win situation for small businesses because they can easily evolve and implement new technologies, without having to sacrifice their finances.
However, let’s dive deeper into this article to learn more about the technologies you can use for reducing transportation insurance costs this year.
5 Powerful technologies that reduce transportation insurance costs
1. GPS tracking systems
This is a common technology mentioned amongst many insurers and is becoming an essential feature for insurance companies.
Modern-day tracking technologies are easy and affordable to install. Moreover, here are some benefits that come with them:
It’s not just that, but GPS tracking systems have a recovery tracker. This allows you to increase the likelihood of recovering your vehicles in case they’re stolen. This type of security allows you to be more vigilant against theft and reduce insurance premium costs.
In fact, statistics show that roughly 1.1 million vehicles were stolen last year. This is where a GPS tracking system comes to the rescue. It can track where a vehicle is going and allows businesses to track their fleet and send data to the central tracking portal. Without a GPS tracking system, the vehicle will most likely never be recovered and this is where costs increase.
GPS tracking systems will inform you of when you should service your car. Technology is great at remembering things you can’t.
Over time, vehicles need to be serviced, have tire changes, brake replacements, and more. With a service reporter, you’re getting informed about what is the next service that needs to be done.
GPS tracking systems are excellent for reducing the likelihood of you getting into a car crash. In fact, statistics have shown that GPS technology has reduced accidents by 80%. You may ask how this is possible.
Well, GPS tracking systems will always offer you new routes and are telling you to avoid areas that might have large traffic jams. The technology knows that the more a vehicle is driven, the higher the chances are for it to collide with another vehicle.
Improved driving behavior
Drivers know they’re continuously being monitored by a GPS tracking system. Those data can be used for controlling the way you drive, such as avoiding any sudden start-stops, sharp turns, and other dangerous driving habits.
Not only does this increase your safety, it becomes easier for insurers to not worry about large costs. Especially if you’re driving a truck with a load, these dangerous driving practices put you at an even higher risk level.
2. Long-haul trucking insurance
Insurance for long haul trucks offers you a financial protection contract. This contract covers businesses that are using trucks and hiring independent truck drivers. It’s an important part of the trucking industry since it helps companies avoid losses from damages, theft, and accidents done to the truck.
The coverage is even more important for trucks than traveling more than 400 km. This is important for reducing transportation costs because it provides coverage for your cargo, insured truck size and the amount of distance you travel.
After all, transportation costs do depend on the type of insurer you hire. Read their policies before you hire them and see what is covered because generally speaking, commercial truck insurance has larger coverage limits that take into account the value and weight of a vehicle and the cargo it’s transporting. If you are more concerned about the additional types of coverages you should acquire, here are some we recommend you use:
3. Electronic log data (ELD)
Data allows you to make more accurate decisions and it ensures that insurers can leverage available data for improving driving behavior. As more and more data is collected over time, insurance companies can compare driver data to their ideal metrics. This allows them to assess the amount of risk and create special policies based on the information they gather.
This technology is crucial when it comes to creating insurance policies for your business. A powerful ELD will offer 24/7 support, live GPS and many other supporting features.
Additionally, it’s also approved by the FMCSA.
4. Dash cameras & rear view cameras
Many drivers may avoid using dash cameras because they think it might interfere with their privacy. However, dash cameras can assess risky driving behaviors and this is what saves you costs in the long term. They remove doubts and alert you whether a driver is falling asleep behind the wheel, eating while driving and more.
There’s no need to give explanations because the footage shows everything. This proves the innocence of the driver in case of an accident.
The footage can be used as a training tool and companies can use it as a way to teach beginner drivers what they should be careful of when engaging in dangerous driving behaviors. Modern-day dashcams are excellent in reducing premium costs and play a major role in them.
Primarily used for parking purposes, but still makes a significant difference. When you are going backwards, it’s harder to see what might be behind you. Especially if it’s something that your mirrors can’t see.
Rearview cameras are great for alarming you of anything you are in your surroundings. Maybe it might be a person walking by at that moment, or an object that is small and can’t be seen with your mirrors.
Regardless if you are going slow or fast when reversing, you can still do damage to your vehicle if something is behind you. If it’s a person, it might cause serious long-term damage to their health.
You’d actually be surprised that rearview cameras have been around for some time. The first car to use was the Buick Centurion concept car, all the way back in the late 1950s!
5. Collision avoidance system
Many modern-day cars have this type of system. If you’re driving a new car, you’ll notice that it gives you a warning if you’re too close to the car or if someone in front of you is braking hard. This helps drivers avoid collisions and crashes by giving them early warnings.
Most of these systems use lasers and cameras for detecting the situation and immediately alerting the driver. If the technology is more advanced, it can even slow down the vehicle's speed to avoid a crash. Additionally, some systems provide the driver with a 360-degree angle view that allows the driver to see what is around them.
Not only does it help reduce transportation insurance costs, but this type of technology also has many other advantages you can use:
Therefore, if you don’t have a collision avoidance system, it’s a good idea to include it in your safety strategy, so that your fleet is incorporating the most modern-day and advanced technology available.
How technology has evolved and reduced transportation insurance costs
Overall, there are many technology solutions available nowadays, so using the most recent technologies is an excellent way for you to reduce your transportation insurance costs. Whether you are in the parking lot and had an accident, or collided on the highway, all of these have a long-term cost to it, but technology has managed to reduce the risks to a certain level.
Four eyes are better than two and in this case, technology is giving us more help than we can imagine.