Companies of all sizes are embracing digital technologies in order to facilitate innovative business models, boost productivity, and stay ahead of the competition, and the transportation industry is no exception.
As competition in the logistics industry grows, many small trucking companies and supply chain businesses have already begun to leverage advanced technology such as telemetrics to reduce operational costs while tracking their vehicles and gaining insights into driver’s performance.
Aside from all of these factors, the adoption of advanced technologies in the trucking industry has had an impact on one more important factor: trucking insurance.
Here is how modern technology has changed trucking insurance.
Keep Track of the Number of Miles-Driven
It wasn't long ago that truck logs were kept on paper, allowing professional drivers to easily control hours and distance. As technology advanced, truckers' ability to circumvent regulations regarding the number of miles and time spent on the road diminished substantially, and in 2015, ELD (Electronic Logging Devices) became mandatory in commercial vehicles, giving automatic reporting straight to truck carriers.
And, as you may be aware, the number of miles driven has a direct impact on commercial vehicle insurance coverage. Different mileage breakpoints are used by insurance companies to determine truck insurance premium pricing. By having control over the actual number of miles driven, you can significantly reduce your truck insurance premiums.
Encouraging Better Driver Behaviour
Drivers who are speeding, tired, sleep-deprived, or intoxicated are among the factors linked to a higher frequency of severe road accidents and, as a result, a higher number of insurance claims.
Statistical evidence supports the argument that when commercial driving vehicles are integrated with usage-based auto insurance resource programs and are aware that their driving performance is being monitored, drivers perform better and follow safer practices. Good driving behavior can be reinforced in a variety of ways with driver behavior monitoring technology, reinforcing habits that can reduce the recurrence and extremity of accidents and claims.
And therefore, because of the lower number of claims, your chances of receiving trucking insurance premiums at lower rates will increase.
Reduce your Insurance Costs with Advanced Safety Measures
In the trucking industry, security technology has witnessed a groundbreaking transformation in recent years. According to one study, commercial trucks contribute to 7.9% of US expressways but are associated with 12% of deadly crashes. To put this in context, trucks are liable for more than 4,000 deaths in the United States alone each year.
Investing in general safety features like ABS (anti-lock braking) systems, fatal crash aversion systems, adaptive cruise control, and dim-sightedness warning devices has not only lowered collisions, concussions, and deaths but has also saved many logistics companies money on potential insurance costs.
According to one source, damage to property payouts can go up to $200,000 for a fleet motor company, while an accident with an injury can cost a commercial truck company anywhere up to $454,000 for a trucking company. Given the elevated cost of insurance, many businesses have invested in advanced security technologies to lower operating costs and enhance return on investment.
Communicating with Drivers to Reduce Mistakes
It is a fact that an informed driver can make mindful decisions. With established communication between drivers, operators, motor carriers, and other staff members, you can improve the in-commercial driver responses. The trucking companies can use a real-time internet navigation system which will not only eliminates errors but will also improve the logistics and operations.
Furthermore, with the advancement of traffic coordination technology, trucking companies can share real-time traffic information with their drivers, such as potholes, blind spots, and surrounding areas.
In a nutshell, all of these things will help to reduce costs and increase productivity, resulting in lower accident risks and lower truck insurance premiums.
Insurance Fraud Will No Longer be Tolerated
Insurance fraud is no longer uncommon. Many cases have been seen where both parties claim insurance for their damaged property without disclosing the true cause of the accident. This puts the insurance company in a difficult position of determining who is liable and whose claim should be clear.
However, by utilizing advanced technology, all of these scenarios can be handled smoothly. Claim handlers can use telematics devices and the digital-first notice of loss submission system to determine which vehicle was overspeeding, smashing on the brakes, swerving, or improperly overtaking.
As a result, with real-time photos and reports, police and insurance companies will have a concise and clear picture of road accidents.
Use Telemetric Data to Save on Insurance Premiums
A fleet's underwriting and pricing take into account all protection and potential danger control measures. A fleet with strong telematics, which uses data on a regular and effective basis, is thought to have incorporated favorable risk mitigation measures and risk management measures, which could be mirrored in the pricing process.
There are numerous kinds of telematics-based solutions on the market, and the amount of information collected can impact how much a transportation company can save on its insurance premium. The way an insurer scores (and then prices) a transportation company's risk is impacted by the telematics tool's data collection capabilities and, more notably, how the company utilizes the data to improve fleet safety and mitigate risks.
Is now the right time to pay attention to tech trends?
These technology developments have the potential to substantially alter some of the underpinning inputs to insurance products and key business processes. The increased application of advanced technologies such as GPS, telematics, AI, data analytics, blockchain, and big data is creating new opportunities for insurers.
With these technological advancements, commercial trucking insurance distribution platforms are expected to increase productivity and provide coverage seamlessly at the point of purchase.
Nevertheless, to say, it will be a relief for trucking companies too who are already burdened financially by expensive commercial truck insurance policies. So, it can be concluded that technology will have a positive impact on commercial trucking insurance.
Hope you found the answers you were looking for in this blog!
If you have any questions about the future of digital trucking insurance, please leave them in the comments section below. We would be delighted to have an open discussion with you one on one.
Technology has undeniably revolutionized the trucking insurance industry, and Real Trucking stands as a prime example of the transformative power it holds. With the integration of telematics and data analytics, Real trucking has optimized risk assessment, allowing for more accurate underwriting and fairer premiums. IoT sensors in their vehicles track driving behavior in real-time, leading to improved safety and reduced accidents. Furthermore, AI-driven claims processing expedites settlements and minimizes fraud.
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