How HGV Trackers Can Help Reduce Truck Insurance Costs

Haulage businesses are under increasing pressure to reduce operational costs and efficiencies. HGV trackers are a great way of reducing costs and increasing efficiencies for the business. Tracker tools that are currently available not only provide valuable tracking information, but also provide real-time data about the vehicle and help keep truck fleets and their drivers safe on the roads.

How Trackers Work

For haulage businesses that have fleets, trackers have helped to streamline business operations. Not only do trackers do what they say they will (track the vehicle), they also simplify and increase compliance and help businesses make savings across the board.  Trackers are seen as an extra risk mitigation measure that lowers overall HGV insurance costs.

Tracking provides more than just GPS information.  It helps businesses manage their HGV fleets and help resolve issues with routing, planning, preparing, fuel consumption, and driver safety.

In its very basic form, a truck tracker will monitor the status, position, location, and behaviour of your fleet.  The tracker will normally be connected to software that interprets and processes the data from the tracker.  This information then helps fleet managers to understand their fleet more accurately.

Real-time, accurate data relating to each truck in the fleet means that managers are able to have more control over their vehicles and manage the workflow for better results and increased productivity.   

How Do Trackers Lower Insurance Costs

For insurers offering HGV insurance, the existence of a tracker or telematics system means that they know the business has already taken an important step to understand and manage risk. 

Any haulage business using tracking will already have carried out risk assessments and have provisions in place in the event that something unexpected happens on the road.  The availability of real-time data via the tracking system demonstrates to insurers that the business is keen to mitigate its risk from the outset.

Insurers also know that tracking systems feed into the health and safety policies, and the training policies, within the business.  Overall, this leads to better safety measures which are looked upon favourably by insurers. If drivers know their vehicle is being tracked and monitored, they drive more responsibly.

Similarly, using trackers means that if a vehicle is stolen it can be quickly recovered.  The risk for the insurer of having to offer a full replacement is lowered on account of the vehicle having a tracking device on.  This reduces premiums as insurers view tracking systems as a good precautionary measure.

Trackers, Telematics and Safety

Of course, the data provided by tracking systems isn’t just about the vehicle. Trackers provide important information about driver behaviour.  This means that drivers are more careful when driving, and the overall safety of drivers increases as they are more aware of being monitored.  

Telematics data from fleet vehicles can provide fleet managers with information about driving speeds, harsh braking, number of breaks, and driving hours.  All this information can be used by fleet managers to ensure that drivers are complying with health and safety regulations and government legislation relating to HGV drivers.

A tracking device is also key if businesses want to prevent vehicle misuse. As the tracking system feeds data back to the haulage office, drivers are far less likely to use the HGV for personal use.  What this means is that there is then less chance of an accident or unauthorised use of the vehicle, and lower insurance costs.

Risk Management for Fleets Using Trackers

For fleet managers, just having access to the tracking data is not enough.  In order to reduce insurance costs, fleet managers need to be able to show that they periodically review the data and take any necessary measures to minimise risk and enhance safety. 

Fleet managers have a duty of care to their drivers and must ensure that the data they have is used to improve the health and safety of the company.

If your tracking device is providing you with information that a driver is not adhering to safety regulations, then this must be addressed as soon as possible. Telematic data, when used properly, can help fleet managers identify and manage risk, and aid development of comprehensive training programmes for the drivers.

HGV companies should always be proactive if they want to reduce HGV insurance premiums.  Use your tracking information as a debriefing system.  This way, you can monitor vehicle and driver performance and then put in place any interventions you need to in order to improve functions.

Remember, telematics can help you make adjustments to your operations quickly and cheaply. For example, in the harsh winter months when driving conditions are bad, telematics information can help you plan safer routes.  This not only reduces the risk of delays, but also reduces the risk of weather-related accidents and injuries.

Trackers and Claim Management

One of the main benefits of trackers is that they can provide vital evidence in the event of an accident.  Telematics data has been used to defend malicious claims against HGV drivers.  If an exaggerated or unsubstantiated claim is made against one of your fleet drivers, the telematics data provides irrefutable evidence that helps you settle and dismiss claims faster.

HGV trackers are incredibly effective when it comes to preventing theft, the recovery of vehicles that go missing, and reducing nefarious claims. What this means for fleet companies is that the premiums stay lower than average with fewer lengthy claims too – any unsettled claim stays visible to the insurer, meaning higher premiums until wiped off the policy.

Benefits of Using Trackers:

• Reduce unauthorised use
• Encourages drivers to drive more responsibly
• Facilitate timely vehicle maintenance
• Enhance vehicle security
• Enables fleet managers to respond quickly to unexpected events
• Provide automation of reports relating to mileage, driving hours, conditions etc
• Help control and maximise fuel costs and usage
• Facilitate the optimisation of routes, deliveries and operations
• Provide visibility when it comes to fleet activity

HGV Insurance

Heavy goods vehicles need comprehensive insurance to ensure the vehicle is protected.

To ensure your HGV insurance covers you for all eventualities please contact ISIS Insurance today and our expert advisers will be on hand to advise you further.  Our brokers will be able to secure discounts to your insurance policy.

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.