GPS tracking is a smart investment for businesses of all sizes. In addition to helping you provide better customer service, fleet GPS can also save you money. Part one of this series on the ROI of GPS tracking covered reduced fuel costs and part two discussed savings on labor expenses. This article will cover the third way you can save money and generate a faster return on your investment: lower insurance costs.
Getting Lower Insurance Costs with GPS Tracking
Insurance costs are unavoidable if you manage a fleet. However, there are two primary ways you can reduce insurance costs with GPS tracking:
- Insurance Discounts – Most insurance providers offer discounts to companies that implement vehicle tracking systems. The actual amount of your insurance discount depends on the carrier and your safety record, but some businesses save up to one-third on insurance costs simply by adding fleet GPS. For example, with GPS tracking the following providers can help you save up to:
- 18% with AAA insurance
- 15% with AIG
- 10% with Allstate in CA, FL, NY, and TX
- 10% with ALFA Insurance in AL
- 15% with Farmers Insurance
- 5% with Fireman’s Fund
- 10% with Geico
- 15% with Georgia Farm Bureau Insurance in GA
- 25% with Liberty Mutual
- 30% with Mercury Insurance
- 10% with Nationwide in CA
- 15% with Progressive
- 10% with Safeco Insurance
- 33% with USAA
- 15% with 21st Century Insurance
Of course, rates are calculated on a case-by-case basis, but your existing provider should be able to tell you how much you could save each year by adding fleet GPS.
Even if you saved just 10% a year on insurance, if your annual premium is $15,000 dollars, you automatically save $1,500 just by adding a system that will help improve your business in many other ways.
- Lower Insurance Premiums – A GPS tracking system improves driver accountability, which translates to less speeding and fewer accidents. Fewer speeding tickets limit the number of points on a driver’s license, which contributes to lower insurance premiums. Fewer accidents and corresponding claims also help keep premiums and deductibles lower.
Factoring these savings into the cost of fleet GPS immediately brings the price tag down. Remember, you’ll be getting these savings every year, even after you have paid for equipment and installation. The ROI benefits of vehicle tracking keep on giving for the lifetime of the system.
If you are interested in saving money with fleet tracking software, contact GPS Trackit for a Speak with a Fleet Advisor today. We’ll help you select the right system and estimate the return on your investment so you will know just how much you can save.
How much do you think you could save on insurance with fleet GPS?