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fleet tracking fleet insurance

How Fleet Tracking Can Lower Your Insurance Bill

February 22, 2018


Fleet tracking offers great benefits like knowing the location of your trucks, improving efficiency, and monitoring driver behavior.  But one advantage is shaping up to be more important than was ever imagined: Fleet tracking lowers insurance rates.

Yes, a well-implemented fleet tracking solution can lower your fleet’s insurance bill, sometimes paying for the cost of implementation in the first year alone.


Direct Discounts

Some insurers offer direct discounts to any owner/operator or fleet using fleet tracking.

Insurers have seen the data long enough to know fleet tracking results in fewer accidents.


One 2014 study suggested an 11.7 percent reduction in crashes for trucks running a fleet tracking solution. In very real and demonstrable terms, insurance companies find lower risk in covering a tracked fleet. That’s why some companies are already offering discounts just for being ELD-compliant.


Ask your insurance carrier about fleet-tracking discounts. If they haven’t found any advantage that’s worth taking at least a few bucks off your premium, it might be time to shop around.


Indirect Discounts

Insurance rates are largely based on CSA scores. When it comes to your insurance bill, the lower the CSA, the better. That’s where a fleet tracking solution can pay off like gangbusters.

Even a relatively minor infraction (like driving six MPH over the limit) can result in a four-point increase in CSA. A simple HOS violation costs seven points. Using a cell phone (to keep dispatch in-the-know about location, perhaps) will add 10 points.


No accident required; each of these infractions can increase both your CSA score and your insurance rates. Fortunately, all can be prevented by a good fleet tracking solution. The ability of fleet tracking to keep your CSA score low also tends to indirectly lower your insurance premiums.


The other indirect discount: When an accident occurs, a good fleet tracker can prove it’s not your fault. Sadly, accident investigation often comes down to he-said, she-said, and trucking businesses often take it in the neck. Digital tracking can serve as proof of safe operation, thus putting at least some share of liability back on the other party and keeping judgements off your record.


The End Game: Safety

The best way of saving money on insurance is to not crash in the first place.

The original purpose of the fleet tracking/ELD mandate was improved safety for truckers and the motoring public. And as mentioned earlier, it’s long been proven a good fleet tracking platform can deliver real improvements in safety.


Safer operation often results from improved driver behavior and communication. When a driver is aware that a fleet tracking system is installed, risky moves like excessive speed, fast turns, and last-minute braking are less likely to occur.


Driver-related factors figure as causes in over 33 percent of crashes, according to the FMCSA.



Fleet tracking is a solution to many of the problems of modern trucking. Whether you’re an owner-operator or a fleet manager, fleet tracking offers many benefits that add up to reduced costs in fuel, maintenance, and yes — even insurance. It’s high time to start taking advantage of what fleet tracking can do for you.



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