How Risk-Focused Technology Is Driving Better Fleet Futures
Within the world of fleet transport, insurance is now not just a means through which to cover losses incurred through accidents and incidents but also a way to keep drivers and the public safer and simultaneously reduce emissions.
The great news for businesses operating fleet vehicles is that new-look insurance approaches can help make drivers more aware of their behaviour. This in turn can contribute to lower fuel costs as the driver takes more note of their speeds and become less erratic as they see the practical benefits of smoother driving. This increased awareness can help with a transition to a green fleet – something required by 2030. Whilst insurance has lagged behind sectors such as banking, in terms of digital transformation, that is all changing thanks to the policies on offer from ‘insurtech’ businesses.
What is on offer from these tech-friendly insurance companies, including names such as Zego, Cuvva, RoadHow and Lightfoot will not suit every fleet operator. However, those for whom the technology works, can secure both operational improvements and cost savings.
One benefit can be a reduction in overall insurance costs if a fleet is currently paying for insurance regardless of whether or not vehicles are parked up for much of the day.
Some businesses only have vans carrying out irregular delivery services, so traditional insurance may not be in their interests, when a pay-as-you-go insurance option is available instead. This calculates premiums according to vehicle usage. The premium can be solely based on vehicles’ time on the road and how they are used or can have a fixed element, plus a usage-only part.
The beauty of this type of insurance cover lies in both transparency and avoidance of over-insurance. Time spent behind the wheel, and driver behaviours detected by the fitted technology, determine the premium, unlike traditional policies which focus on driver profile, driving record and postcode area. Fleets do not pay for cover on the basis of a national average; this is completely tailored insurance.
Analysing on-the-road performance is also the premise behind other technologies, often utilising Artificial Intelligence (AI). Driving efficiency and safety are being driven by in-vehicle technology that analyses aspects of driving such as gear selection, engine load and payload and helps drivers to mostly drive within the ‘sweet spot’ – where maximum efficiency and safety lies – whilst still accelerating and reacting when necessary.
With many behaviours analysed by this type of technology not only influencing the driver’s risk but also the vehicle’s fuel consumption, there is every opportunity to use such technology to reduce fleet overheads. Drivers are also empowered and can strive to achieve better performance because the technology is constantly measuring their behaviour and can contribute towards potentially lower premiums because of the driver’s good practice. The payback for fleet managers comes in the form of mile-per-gallon gains, dramatically reduced accident rates and less vehicle downtime.
Discouraging idling means fewer emissions – contributing to the battle against climate change. With this type of technology also alerting EV vehicle users when an electric vehicle charging is required, ‘forgetfulness’, a fleet ‘fear’ of 67% of fleet managers with regard to electrification, is removed.
What suits your fleet is dependent on your operation. Pick up the phone and talk to your broker about your individual risk and vehicle usage and they will steer you towards the best option for you.