Dashcams and other telematics devices are often used to enable for-hire vehicle fleets to improve their safety operations and obtain better insurance coverage and prices. These technological and integrations are not new, but insurance companies tend to look to insurance companies that have safety as the pillar of their fleet.
Small and midsize fleets often lack the resources necessary to impact safety in the same ways as some of the more successful fleets. A for-hire vehicle and/or transportation entity need safety and risk-management tools as well as end-to-end solutions. These can be obtained, but one thing that is lacking in New York City is the ability to obtain a one-on-one relationship with a dedicated fleet services representative with an insurer.
Fleets desire to improve safety and want to work with insurance companies to form a relationship with their loss control representative but underwriters still seem to care more about how safe you have been over the past three years and less about how much you’re willing to invest in safety going forward. Insurance companies can deliver more tailored and effective products and services by leveraging real-time data. Data also is what powers services and tools fleets can use to achieve insurance cost savings.
Risk management typically begins with high-quality telematics—including interior and road-facing dashcams. However, great telematics are not enough to protect fleets from all risks they face. The data generated by the telematics devices has to be incorporated into a well-managed risk management program for fleets to see safety results. Fleets often are overwhelmed with data and don’t have the time or resources to fully evaluate and learn from it.
Also, being able to coach drivers on their specific patterns of behavior can go a long way toward improving safety. Additionally, fleets need to demonstrate they have done everything the right way to avoid nuclear verdicts. The data obtained also can and should be used to coach, manage, and reward drivers which tends to significantly improve their safety and engagement.
In many cases, insurance companies are not keeping up with the evolution of technology within the for-hire transportation industry. The reality is that today, many insurers don’t offer price breaks to a fleet that has ADAS systems in their vehicles. Even if a fleet fits its vehicles with the latest and greatest technology, they will not realize immediate, upfront savings. The best way for a fleet to ensure that they get an excellent insurance policy is to constantly think of safety, not just in the short period when they are actively shopping for insurance.
Implementing safety technologies, such as road-facing dashcams, can be costly upfront. However, they will provide both immediate and long-term benefits that will far outweigh the temporary challenges. Integrating baseline technology will quickly help improve a fleet’s safety performance and efficiency of their operation and help reduce the probability of losses.