How can fleets leverage telematics to drive safety and efficiency?

In today’s ever-evolving commercial automobile and long-haul trucking industries, staying ahead requires more than just reliable vehicles and experienced drivers. Telematics technology is transforming the way fleets are managed, offering a powerful tool that enhances safety, efficiency, and improvements to a company’s bottom line.   

Whether businesses are in the process of building their commercial fleet or are tenured fleet managers assessing ways to improve their bottom line, brokers and insurance providers may be asked what is telematics, and how can it benefit my fleet, and, in turn, my business? To help answer those questions and more, below is an overview of the key benefits telematics offers when it comes to driving safety and efficiencies for commercial operators.  

Often referred to as GPS vehicle tracking, telematics devices collect information on nearly every aspect of the vehicle they’re installed in, including speed, idling, fuel use, tire pressure, and more. This technology involves the collection of real-time information on a vehicle and its driver’s behaviour either through a mobile app or small chip inserted through a vehicle’s on-board diagnostics (OBD) port.  
 
Telematics offers a myriad of benefits to commercial operators. To start, telematics technology can optimize how fleets are managed and maintained. Telematics provides businesses with real-time insights into their vehicles’ locations and overall health. “It’s not just about having telematics, but ensuring operators are leveraging the insights this technology provides properly to proactively mitigate loss,” says Olivier Bernier, Echelon’s Director, Quebec Long-Haul Trucking and Commercial Automobile.   

Telematics enables fleet managers to track routes more efficiently, ensuring more accurate route planning which reduces fuel consumption and wear and tear on vehicles. This system monitors vehicle health, providing predictive maintenance alerts that prevent costly breakdowns and extend a fleet’s lifespan.  

When it comes to driver safety, telematics continuously monitors driver behavior, providing insights into metrics such as the distances traveled, the times of day the vehicle is in use, acceleration patterns, and braking behaviors. Information collected by telematics systems can help operators identify opportunities for additional driver training and education.   

“Operators should be actively assessing this data and be coaching their drivers on areas where they need to improve, which, in turn, will contribute to safer roads for all,” says Bernier. 

Additionally, telematics offers significant benefits to fleet operations through enhanced risk assessment. When shared with their insurer, telematics data enables insurers to assess fleet operations on an individualized basis with precise, real-time data.  

 “Insurers can use this insight to create highly customized insurance plans that reflect individual driving habits,” says Bernier. By analyzing driving patterns, vehicle usage, and maintenance records, insurers can more accurately gauge the risk associated with a fleet, leading to tailored insurance solutions. From a cost savings perspective, this may lead to lower insurance premiums for operators who demonstrate safe driving behaviors and effective fleet management practices.  

From optimizing fleet management and improving driver safety, to potentially lowering insurance premiums, telematics technology is revolutionizing the insurance landscape by offering a multitude of benefits for fleets. As the industry continues to evolve, brokers and insurers who embrace telematics will be well-positioned to lead in safety, profitability, and customer satisfaction. 

 “Telematics fosters a symbiotic relationship between insurers, brokers, and customers,” says Bernier, “where data transparency leads to mutual benefits and a shared commitment to road safety.”

As interest in telematics technology within commercial automobile and long-haul trucking industries continues to grow, brokers have a unique opportunity to introduce their clients to the benefits of telematics, helping them reduce costs, mitigate risks, and improve overall efficiency.