Balancing the cost of commercial auto insurance with operational efficiency can be overwhelming when managing a fleet. Fleet management software has emerged as a go-to solution, streamlining fleet operations and providing data and safety features to help lower insurance premiums.

Commercial auto insurance rates continue to rise. Trucking insurance premiums have surged, rising from $0.071 per mile to $0.088 in just two years. As a result, businesses are under pressure to control costs wherever possible. One way to tackle these rising rates is by using fleet management tools. These tools can help reduce risk through driver monitoring, maintenance scheduling, and real-time GPS tracking. Fleets with software-based safety protocols can see as much as a 20% decrease in accidents, contributing to lower insurance costs over time.

Did You Know? The Network of Employers for Traffic Safety (NETS) reported that on-the-job crashes resulting in an injury can cost upwards of $75,000. Telematics not only saves you money on your premium— these tools also protect drivers and others on the road.

Whether you’re managing a handful of vehicles or a large-scale operation, the right software can be an invaluable ally in keeping your fleet safe and your insurance costs under control. In this article, Jason McConkey, director of transportation underwriting at Central Insurance, dives into the best fleet management software options. 

Keep reading to learn how to protect your business and your bottom line.

Why Fleet Management Software Matters

Fleet management software is no longer just a tool for tracking vehicles; it’s an investment that can directly influence your business’s insurance premiums. McConkey emphasizes that insurers are increasingly factoring in safety measures and data insights when determining rates. Fleet management software delivers both.

Many programs monitor driver behavior, such as speeding, harsh braking, and idling. These behaviors are significant predictors of accident risk. Aggressive driving contributes to over 56% of fatal crashes in the U.S. annually​. Fleet software that tracks and corrects unsafe behaviors reduces the likelihood of accidents and demonstrates to insurers that you’re actively mitigating risk—a factor that can lead to reduced premiums.

Beyond driver behavior, McConkey highlights that fleet management software streamlines vehicle maintenance, ensuring you address issues like worn brakes or engine problems before they become safety hazards. 

Fleet management systems’ real-time GPS tracking and theft-prevention features add another layer of protection. Software that tracks vehicles in real time and sends alerts for unauthorized use can significantly reduce the likelihood of theft-related claims.

Fleet management software reduces accidents, keeps vehicles in top condition, and safeguards against theft. McConkey stresses that policyholders who demonstrate proactive risk management can be rewarded with lower insurance costs.

Now, let’s break down the features to look for when choosing a system so you can maximize safety and savings.

4 Essential Features of Fleet Management

Not all fleet management software is created equal, and certain features can significantly improve fleet safety and reduce claims. Below, McConkey lists the features that are key to this.

1. Real-Time GPS Tracking

Real-time GPS tracking systems provide precise vehicle location data, allowing fleet managers to monitor routes, optimize efficiency, and ensure safety. Beyond route optimization, this feature can be a lifesaver in emergencies by quickly locating vehicles in case of accidents or breakdowns.

Why It Matters:

• Accident Response: Rapid location tracking reduces response times for medical or mechanical emergencies, saving lives.
• Theft Prevention: Immediate alerts on unauthorized vehicle movements help prevent theft.
• Stat: 90% of fleet operators state that GPS tracking is a critical component of their safety strategy, underscoring its role in creating a safer fleet culture.

“If a vehicle goes off its designated route or operates outside of authorized hours, many systems can send instant alerts,” McConkey explains. This feature is especially critical in areas where auto theft is prevalent. With over 1 million vehicles stolen in 2023, having GPS-enabled tracking can make a significant difference in keeping your fleet safe.

2. Driver Behavior Monitoring

Driver monitoring devices can provide data on speeding, harsh braking, and rapid acceleration. It can also provide insight into the time spent at jobsites, driver stops, and total miles driven. This data allows fleet managers to identify risky drivers and provide targeted training to improve their habits.

Why It Matters:

• Accident Reduction: Harsh braking and speeding are significant predictors of crashes. Proactively tracking and addressing these behaviors can prevent accidents.
• Cost Savings: The financial toll of crashes includes repair costs, insurance premiums, and liability. A single crash with injuries can cost up to $4.5 million when considering medical expenses and lost productivity​.
• Fuel Efficiency and Maintenence: Harsh driving can affect your fleet’s fuel economy and cause a need for vehicle maintenance. This data can track these patterns and provide the total time a vehicle’s engine runs when not in motion.

“You need to be able to show your insurer that you’re improving over time,” McConkey advises. “Whether it’s a reduction in harsh braking incidents or fewer maintenance-related breakdowns, having the data to back it up can help when renewing your policy each year.”

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3. Dash Cameras

Dash cameras provide visual evidence in case of accidents or traffic disputes, ensuring transparency and accountability. Advanced models include AI capabilities to alert drivers to distractions or drowsiness in real time.

“As a large company vehicle, drivers must understand that they have a target on their back,” McConkey explains. “You have the name of a company on your vehicle. You are not only representing them, but that makes you a target. Dash cams can not only prove you’re not at fault but that you are basically blameless.”

Why It Matters:

• Liability Protection: Video footage can protect drivers and companies from false accident claims.
• Driver Coaching: Regularly reviewing footage with drivers can help train them to maintain safe driving practices. Utilizing cabin-facing cameras can also help identify distracted driving.

Learn More: Distracted Driving: Why We Do It and How to Stop

4. Maintenance Alerts

McConkey emphasizes preventive maintenance, which ensures that fleet vehicles remain in optimal condition and reduces the likelihood of mechanical failures on the road. “There should be a contract in place where the vehicle is worked on every set number of miles, jobs, or something similar,” McConkey explains. “Maintenance alerts followed by thorough maintenance record-keeping ensure your units aren’t just operational but also not at risk of falling out of operation.”

Why It Matters:

• Failure Prevention: Unchecked issues like worn brakes or bald tires can lead to catastrophic accidents. These types of accidents can cause massive injuries, financial losses, and significant increases to your future premiums.

Integrating Fleet Telematics for Lower Auto Rates

Good fleet management software uses the above methods and other fleet telematics to bring real-time data into your fleet operations. By integrating this data, you can spot trends and areas of improvement, evaluate safety metrics, and optimize training programs for your drivers. Doing this demonstrates proactive risk management to insurers, which can translate to long-term savings.

“While some carriers may not offer you an instant percent off discount for installing dash cameras within your company vehicles, it’s something that underwriters take into consideration year over year,” McConkey explains. “It’s one of the characteristics that defines a proactive account that cares about managing this risk. Your insurer will view this favorability when it comes to any wiggle room on pricing.”

Beyond insurance savings, telematics also drives operational efficiency, making it a smart investment for businesses. McConkey stresses that even if you don’t receive premiums right away, other benefits make telematics worthwhile. Benefits include reduced fuel consumption through optimized routing, enhanced driver accountability, and better overall fleet performance.

Learn More: Employee Drivers & How to Protect Your Business Auto Insurance Rates

The Central Difference

With rising commercial auto insurance rates, these technologies offer a proven way to reduce risks, cut costs, and foster a safer driving culture. As insurers increasingly reward proactive risk management, integrating these systems into your fleet operations could save money and enhance your team’s safety and productivity. 

Choosing an insurer that truly understands your industry’s unique risks and operational hurdles is equally crucial. Central takes a collaborative approach to ensure we provide coverage and guidance to address industry challenges, optimize safety protocols, and support your long-term success.

“At Central, we value the relationship we build with our policyholders. When you demonstrate that you, your company, and your drivers are invested in staying safe, it pays dividends over time,” McConkey says. With Central Insurance, you gain an insurance partner who values your commitment to excellence and safety as much as you do.