Insurance Discounts for Vehicle Tracking: What You Need to Know


Small businesses are constantly examining ways to reduce overhead. One of the more popular strategies is through the use of technology. It is well documented that the use of a tracking device can cut down on wasteful time and spending and improve overall efficiency. What often goes unmentioned is the idea that a tracking system can be leveraged to save your business ever more money in places you might not think, the most popular being with the cost of insurance. Many insurance company’s offer substantial discounts (ranging from 10-30%) for businesses that have outfitted their company vehicles with GPS Vehicle Tracking.

What’s the catch?

Insurers have experimented with “usage-based insurance” for quite some time. The premise is simple, your insurance provider supplies you with a device to evaluate your driving habits, and discounts are applied based on the information obtained. In theory, everyone wins. In practice, the discounts obtained through the use of an insurance company’s device usually come at the expense of company privacy, and in some cases subpar driving during the evaluation period can actually lead to insurance prices going up!

During the evaluation period, not only are insurers receiving data related to driver behavior that they need for the assessment, they are also amassing a tremendous amount of data regarding driving locations from their customers. While the current industry standard is not to share that information with any other companies, similar policies across other industries have not lasted, and it stands to reason it’s only a matter of time before insurance companies begin to leverage that information in a way that could potentially compromise your company’s privacy.

In addition to privacy concerns, utilizing an insurance company’s device leads to a tremendous amount of uncertainty. All is well if the data captured is flattering, but what happens if the information sent to the insurance provider is damaging to the reputation of the driver? In recent years, some insurers have implemented a policy that could actually raise rates based on the information captured.

What information is needed to petition for a discount?

Generally speaking, most insurers are looking for some combination of the following:

  • • Mileage totals
  • • Driver behavior characteristics (harsh braking, excessive speed, hard turning right to left)
  • • Speed information (typically over a certain number ex. 75 MPH)

Each insurance provider may require different information. Ask our provider what information is required.

How can Track Your Truck’s Tracking Device Help?

Track Your Truck customers can utilize the data from their existing tracking devices to comply with an insurance company’s required information while still protecting their privacy. Accelerometer and speed reports can be submitted to fulfill the bulk of the criteria, and truck activity reports can show overall totals for mileage and operating times. This allows you to fulfill all the requirements while keeping complete control over your privacy and minimizing undesirable consequences.

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