How To Beat Rising Insurance Costs

Fleet owners and managers have been noting a steady increase in insurance costs and are on a quest to mitigate that rise. But, is there a quick solution to curbing costs? Possibly. In fact, many are turning to technology and software solutions to help rein in common delinquent behavior like distracted driving, speeding, and other unsafe behaviors.
Here’s a look at some of the more common culprits of rising insurance costs and the different technologies you can use to address them.

Was That My Fault?

Insurance costs and premiums are being unfortunately boosted by the industry’s driver shortage issue, as trucking companies have no choice but to hire younger, less-experienced drivers. According to San Diego-based Storrs Insurance Group, “Drivers that are between the ages of 21 to 24 get into accidents more than twice as often as drivers over the age of 30.”

On the other hand, more experience doesn’t necessarily equate to safer driving. Chris Tanke, the transportation practice leader of risk advisory HNI, says there’s a tendency to assume most crashes are the direct fault of novice truckers. In a recent blog post, Tanke goes on to ask, “What about our drivers who have been with us for the long haul? You may think ‘He’s been around for over 20 years — just leave him be and let him drive.’ You’re wrong.”

Experienced drivers that routinely escape near-miss accidents often become more confident in their ability to avoid getting caught. What’s worse is their complacence when it comes to poor driving habits, until of course, the result is a critical accident.

Mitigating Risk With Truck Safety Technologies

Ongoing driver training, whether it be a combination of online, in-person, and group training is something we feel should be an ongoing organizational endeavour. Enforcing no-calling and no-texting rules as well as installing apps that purposely shut phones down when a truck is in motion is quickly becoming a favorite among fleet owners and managers.

Many fleets are also taking truck safety technology to the next level. Here are some of the more popular solutions fleets are adopting in an effort to bring down insurance costs:

• Telematics data to identify unsafe driving practices such as speeding and sudden, hard braking
• Active safety solutions that warn drivers of unsafe situations on the road or even automatically intervene for the driver to prevent accidents when critically necessary
• Anti-lock braking, lane departure warning, collision avoidance, and blind spot warning systems, as well as side, rear, and driver-facing cameras and sensors
• GPS tracking technology is also quickly becoming a favorite among fleets. Not only does GPS make it easier to recover stolen equipment and goods, many insurance providers also offer discounts to fleet owners who use these systems, which can be classified as anti-theft devices.

Momentum is building when it comes to the use of truck safety technologies to mitigate rising insurance costs. What are you doing to lower your insurance costs?