How GPS Tracking Can Drop Your Insurance Payments
According to the FBI’s Uniform Crime Reporting Program (UCR), there were over 700,000 vehicle thefts or attempted thefts in the United States in 2019 alone (Source: FBI UCR). What is really staggering is what those thefts mean to individuals. Those approximately 700,000 vehicle thefts resulted in a loss of over 6 billion dollars in a single calendar year, translating to a loss of approximately $8,000 per individual vehicle owner or, in many cases, their insurance provider. Year over year, these expenses only increase.
As a vehicle owner, how can you protect yourself? Insurance companies are frequently responsible for making payouts to vehicle owners who have had their vehicles stolen, resulting in losses. Because of this, many insurance companies are offering incentives that can provide mutual benefits to themselves and vehicle owners.
What incentives do insurance companies offer to drivers to help them save?
Many insurance companies are now offering programs to help their drivers save using GPS tracking. Some of these incentives are designed to differentiate between responsible and irresponsible drivers, while others are designed to help recover lost or stolen vehicles. There are two forms of GPS tracking commonly used by individuals in conjunction with their insurance: driving apps and GPS tracking devices.
Driving Apps
Some insurance companies offer driving apps that can help them to monitor drivers, track their usage, study their speeds and driving habits, and determine whether they are safe or reckless drivers, based on the average of their trips. Apps like this are somewhat limited in their capabilities as they run over the user’s phone instead of monitoring the vehicle directly. The insurance company may be able to acquire data about where the driver has gone, how fast they have traveled, if they have used their phone while driving, etc., but they will not usually be useful in helping police recover a lost or stolen vehicle as they are on the driver’s phone and not always in the car. Even if a car is stolen with a cell phone inside, the thief will likely throw it away or disable it as soon as it is discovered.
GPS Tracking Devices
Independently mounted GPS tracking devices are another, often more beneficial, option for users who want to save. A GPS tracking device in your vehicle generally offers more benefits than a tracking app because the device remains in the vehicle at all times. In addition to tracking trips and driving behaviors, the device you purchase also be able to monitor whether your vehicle has been stolen, determine its location for recovery purposes, and, if a dash cam is included, determine fault in accidents. Because your GPS tracker is generally going to be mounted in a discreet location, it is unlikely to be disabled by a thief.
How much can a GPS tracker save someone?
You may be wondering how using a GPS tracker can result in lowered insurance premiums. Each insurance company will offer different discounts, but the range of discounts has been determined to be between 5 and 40% (Source: USA Today). Apps and trackers that indicate a driver is a safe driver give insurance companies more confidence that covering that person will not be detrimental to them and that if this driver requires a payout, it is not a part of a pattern of poor driving. Monthly discounts are often offered in exchange for the perceived violation of privacy required to allowing your insurance company to monitor your every move. An insurance company will also often save on payouts in the event of a vehicle theft if the GPS tracker in the vehicle allows it to be recovered. These savings then trickle down to the vehicle owner.
How GPS tracking lowers insurance costs
While all of this probably sounds very interesting, you may be asking yourself exactly what the benefits that result in lower insurance premiums are and how the use of GPS tracking results in saved money. This is best explained by showing exactly what those GPS trackers are used for. Keep in mind that your insurance company may have different practices than those listed here. You will have to ask your representative directly to know exactly what is being tracked on your vehicle.
GPS tracking can reduce the risk of theft
For some insurance companies, GPS tracking devices qualify as theft deterrent devices. Sometimes simply placing a sticker on your vehicle that indicates it is loaded with a GPS tracking device is enough to stop a criminal from targeting your vehicle. In the event that the vehicle is stolen, an onboard GPS tracker can help law enforcement recover the stolen vehicle.
Improve vehicle maintenance
Although there are plenty of new vehicles that provide smart dashboard displays to remind you about routine vehicle maintenance, there are still many cars on the road that don’t have these features. Some GPS trackers, usually those that are hardwired into the vehicle, can monitor your vehicle’s performance and provide you with feedback about maintenance and repair needs. Taking care of these issues when they are first noticed can save you thousands down the road.
Encourage more responsible driving habits
Most drivers think they are pretty good at driving, and if asked, typically believe there are a lot of bad drivers on the road with them (Source: Business Insider). When your GPS tracker or mobile app provides you with feedback about your driving habits, you will have a clearer picture of your own driving habits and may discover where you can improve. Awareness of your driving habits, plus an app providing you with specifics, can help. Some of the driving habits that your app or tracker may call to attention are things like harsh braking, speeding, phone use while driving, and more. These habits are easily remediable and, with continued use of the app, you’ll be able to monitor your improvement and see your safe driving practices increase while, hopefully, your insurance premiums decrease.
Decrease risk of accidents
The risk of accidents also decreases with improved driving habits. Insurance companies are aware that drivers who practice safer driving, including not speeding or harshly braking, are less likely to get into or cause accidents. This is the main reason they often incentivize your use of apps and GPS trackers: the fewer accidents their policyholders get into, the less they have to pay out in damages. It’s a win-win for everyone involved!
How to begin saving immediately
We recommend contacting your insurance company to find out what kind of incentive programs they offer, or switch to an insurance company that offers an incentive that appeals to you. Some insurance companies will utilize apps of their own making which remain turned on on your smartphone. Others will offer you all kinds of options, including the option to self-purchase GPS tracking devices and dash cams of your choice to be installed in your vehicle. Once you find out what kind of savings options are offered by your insurance company, you will be able to select the GPS tracking device that provides you with the tools you need.
If saving money is your greatest motivation, you may want to shop around for the best offer. Remember, depending on the insurance provider you could save anywhere from 5 to 40% on your insurance costs. Do your homework, and you could end up with a very good deal.
Updated April 2, 2024
Using GPS tracking to maximize your business efficiency
Employers often struggle with maintaining business efficiency, especially when large numbers of employees work off site, make service calls and deliveries, or transport company assets from place to place; this is one of the many reasons why employers may choose to monitor the movements of their workers. There are a variety of ways employers can use GPS tracking systems and features like geofences to help devise better time and route management for their employees, resulting in a more efficient workforce.
The first step to take when you want to begin monitoring employee movement is to select a GPS tracking system for your fleet vehicles.
Some popular options include:
- TrackPort GPS Vehicle Tracker which can be plugged into the OBD-II port under the dash
- Livewire Dash GPS Vehicle Tracker which is hardwired to the vehicle so it cannot be easily removed
- Spark Nano GPS Tracker which is a small GPS tracker that can be used in a variety of applications
Each of these devices have their own sets of features for specific applications. Our experts at BrickHouse Security can help you select the most appropriate device for monitoring your fleet, helping to ensure that you have the features that will be most useful for you. Our full-featured GPS tracking platform, which is available with many of the trackers we offer, enables you to monitor your employees’ movements, travel routes, speed, stops, harsh braking, acceleration, and more.
Exploring the Use of Geofences
Once your company’s vehicles are outfitted with your selected GPS tracking device, you can set up your customizations through the tracking platform. Some customization options include speed tracking, stop alerts, and geofences. Setting up and utilizing geofences is one of the best ways to monitor movements so that you can manage routes and work times for optimal efficiency. There are several quick and easy ways you can set up geofences to examine many aspects of your vehicle and product movement. Some of these ways are detailed below.
Boundary Geofences Around Larger Geographic Areas
A simple way to monitor your employees’ movements is to set up a large, boundary geofence around each employee’s designated work area. While the tracking platform will always allow you to monitor individual movements, whether they take place inside or outside of the geofence, having a boundary geofence can be useful for keeping track of certain behaviors. For example, if your employee exits their work area, you can set up a notification that lets you know right away, allowing you to log on and watch their actions in real time. This will help you determine if your employee is simply rerouting for traffic or if they’re making unauthorized stops on business time.
Using GPS Tracking Data for Maximizing Efficiency
This level of location management is far more effective than simply seeing your employees’ locations. With alerts and timestamps, you’re able to create complete snapshots of each employee’s work day. Having this data gives you greater insight into where your employees are spending the most time. Once you have this snapshot, you’ll be able to dig deeper into the reasons for inefficiencies and establish better systems.
For example, you may discover that one employee frequently arrives late to his or her first stop or takes an unexpectedly long time to get from one job to another. Disciplining an employee without understanding their situation may not help resolve the issue, but having detailed location data will allow you to examine the situation more closely. Utilizing a GPS personal tracking system may help you determine that the designated route for that employee follows a school bus route or a road that is notoriously slow during rush hour. Creating a more efficient work environment starts with understanding the specific challenges employees are facing.
Potential Problems That Can Be Solved with Geofences
Once you’ve begun gathering this data, you may be able to solve a variety of problems that you’ve been unable to manage before. Some of the issues that can be addressed include:
- Business efficiency
- Tardiness
- Missed tasks or jobs
- Long or short work times
- Missing equipment
- Customer complaints
If you’re able to see more details about where your employees are, how long they’re there, and what routes they’re taking, you’ll be able to have a clearer picture of each employee’s movements. Determining and addressing these types of work day inefficiencies with detailed data can help you guide your employees to better route planning and time management techniques, making business flow smoothly.
Updated April 3, 2024