Fleet insurance is one of the biggest components of the total cost of fleet ownership. Hence, a shift in trend will have a domino effect on your business expenditure.
With fleet insurance companies like Rideshur rolling out new and innovative approaches to how insurance works, there’s a lot to look out for this year. Read on to find out the 5 key fleet insurance trends you should consider this year.
Increased use of Telematics
The past few years have seen a lot of improvement in-vehicle technologies, which have helped to boost safety on the road. Commercial fleets have since used this technology to monitor vehicle performance, mileage, and driver behavior.
Armed with the data retrieved from telematics technology, fleet insurance companies can better process and analyze data for more insights. With this trend expected to improve this year, fleet owners can take advantage of this opportunity to demonstrate a track record of safe driving. This can help to reduce premium costs during renewals.
Focus on Driver Behavior
The behavior of drivers can go a long way to determining the safety of your fleets. So drivers need to avoid drowsy and fatigued driving and stay awake by maintaining a healthy sleep schedule.
But with improved telematics providing real-time feedback on driver behavior, fleet owners can better tackle distracted driving.
With the help of telematics, fleet insurance companies can better analyze and reward good driving with better rates. Meanwhile, policyholders can use this opportunity to train or replace bad drivers to help them get better insurance premiums.
More Focus on Usage-Based Pricing
The past few years have seen a bigger focus on cars on demand. With urbanization giving birth to new mobility solutions like car-sharing, it is highly unlikely that your insurance premiums will be determined by the kind of vehicle you own.
Rather, the fleet cost will be calculated by how drivers use their vehicles. The user-based pricing model gives policyholders more creative control over how much they pay for insurance.
A steady rise in previous years suggests there’ll be even larger inflation on legal, spare parts, and medical costs from accidents.
This may impact the cost of fleet insurance for the foreseeable future. Hence, there will be a bigger focus on cost control. This would, in turn, increase focus on improving reporting systems, claims to handle, and accident management within the industry.
Adoption of Electronic Vehicles
2021 saw an increase in sales of electric vehicles. This is expected to continue this year. Electronic vehicles provide enhanced fleet software and data sharing, which improves communication. The use of autonomous vehicles is also expected to increase this year.
Vehicles with better technology and autonomous driving will improve road safety, communication, and driving hours. Better vehicles mean better risk management.
With these insurance trends expected to take center stage this year, it would be wise to map out how best to maximize them. If you’re not sure how to stay on the front foot this year, contact Rideshur for groundbreaking ways to handle fleet insurance.