How Technology Can Reduce Your HGV Insurance Costs
Obtaining the appropriate insurance for your heavy goods vehicle, or fleet of heavy goods vehicles can take time and patience. It requires a great deal of attention to small details, and if you are not careful it can be expensive. Haulage companies are faced with managing budgets that require control and tight management. Using technology can lower insurance costs and make operations more efficient.
Historically, insurance operations and technology have existed independently of each other. Whilst technology may have facilitated the operations and marketing of insurance companies, technology did not play a role in the cost of the actual insurance premiums.
This is now changing. Fleet and haulage companies have come to realise that technology can greatly assist them when it comes to reducing insurance costs and premiums.
Claims management and defence after an accident takes place can be a complex and time-consuming exercise. Technology such as cameras and trackers can help to achieve better management of the claims process and reduce insurance costs by providing what is deemed to be valuable witness evidence.
Let’s have a look at what HGV technology is available and how it is used.
Camera Systems
Everyone wants discounts that can be obtained up-front when obtaining an insurance quote or policy.
Historic claims experience is a critical and central component of any insurance quote. If vehicles within the fleet have had cameras installed, then the perception of risk is deemed to be lower.
An insurer will look at the presence of the cameras as a risk management measure. Cameras often speed up the claims management experience and lead to insurers offering discounts and favourable rates when it comes to HGV insurance.
In order for those looking for HGV insurance to maximise the potential of having cameras installed they should ensure that:
- Any cameras are installed properly and used correctly
- Film footage should be stored carefully so it can be accessed if required
- Any footage obtained post-accident should be sent to the insurance company as soon as possible
Trackers
Many haulage companies are using tracker systems to improve their operations.
Trackers are not only used to track the vehicle, but they can also be used to prevent unauthorised use of the HGV, reduce fuel costs, provide fleet visibility, and improve vehicle management and security.
An important point to note about trackers and GPS systems is that they lower the likelihood of claims being made due to vehicles being stolen.
Trackers often have a recovery tracker element which means stolen vehicles can be found quickly.
Telematics and Data
The reason telematics data is so important for the HGV industry is that the data helps companies and drivers manage and calculate risk precisely.
The metrics and data that telematic devices can provide can range from everything from acceleration, speeding, lane changes, and gear changes. All this information is useful in the event of an accident.
In addition, this kind of data is accurate and provides HGV companies and their insurance companies with important insight.
Telematics data, when used well, can help fleet companies coach their drivers to adopt safer driving habits.
Video telematics and dashcams can have a big impact on insurance costs. They provide accurate and irrefutable evidence when it comes to accidents and claims resulting from accidents.
Monitoring
Having good monitoring systems in place can improve driver experience and help reduce the risk of driver distraction.
If you are thinking of installing any kind of monitoring device, then you need to make sure it is appropriate and used correctly.
Reducing Risk Using Telematics
An important thing to note is that whilst telematics can provide fleet companies and HGV drivers with important information, the information is only of use if it is used to minimise risk.
Fleets and vehicles cannot be protected from risks simply on the basis of telematics data. What the data should be used for is the mitigation and minimising of risks identified by the data.
The best way to use telematics data is to incorporate the findings into a well-constructed and managed risk management strategy and programme.
Operators and companies should ensure that the telematics data:
- Informs the implementation of risk management
- Helps to develop a comprehensive training and health and safety programme
- Feeds into the management and upkeep of the vehicles
- Is used to optimise operations and routes
Protecting Assets
Of course, in addition to providing essential data, telematics also help to protect the assets and the vehicles.
Traditionally, technology such as dashcams have been viewed through the lens of claim defence and claims management. For example, if an accident occurs on the road the dashcam is a useful source of information and evidence. For a driver who is not at fault, the dashcam can provide the best defence against someone who is making claims of being faultless.
However, more recently, haulage companies and drivers have realised that technology can also improve the assets and running costs of the business.
Incorporating telematics within the risk management strategies of the company not only helps when accidents occur, but they can also lead to a reduction in the number of accidents.
Telematics data also feeds into the maintenance programme of the vehicles, often meaning that vehicles are not overlooked, and damage is prevented before it even arises.
One final and important point to mention is that for any fleet company to reduce costs, they need to ensure that their drivers are properly trained and empowered. Making sure drivers know about the technology installed, and how it works is important when it comes to driver improvement and safety.
Reducing Insurance Costs
Using technology can lower insurance costs. Technology that mitigates risk is always seen favourably by insurance companies.
However, for fleet managers to make sure that any technology they use lowers premiums they need to make sure that the information they receive feeds into the culture of safety within the whole organisation.
HGV Insurance
Heavy goods vehicles need comprehensive insurance to ensure the vehicle is protected alongside the driver and the goods carried by the vehicle. Our expert advisers can advise you of all the possible discounts and offers available to you.
For flexible and immediate insurance cover for your business and its operations, please contact ISIS Insurance today and our expert advisers will be on hand to advise you further.
ISIS Insurance offers a wide variety of insurance options and quotes that cover everything a HGV might need when it comes to insurance, from skip lorries to refrigerated vehicles.