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AUG 12, 2021 Telematics Essential to Effective Fleet Management risk management
Telematics Essential to Effective Fleet Management
Telematics technology, previously considered “nice to have” for many fleet managers, is gaining significant traction as more companies realize the distinct advantages of monitoring systems.

While some were initially hesitant about telematics because of the anticipated reaction of drivers or the assumption that a fleet must be large in size, notable organizations such as Amazon and UPS have helped underscore the benefits of tracking fleet data for companies across industries.

In fact, demand for and implementation of telematics is expected to reach pre-pandemic growth rates and beyond. According to Automotive World, technology such as telematics is expected to be “dominant drivers of the fleet management market” with continued growth in the next decade.

How Does Telematics Work?
By connecting a data logging device to the vehicle, telematics software provides key information about the vehicle and driver, including:
  • Location and maintenance status
  • Fuel consumption and idling time
  • Driver speed, braking/cornering, acceleration
This data is fed into a system that provides real-time insights about how drivers and vehicles are performing, enabling fleet managers to analyze, evaluate and improve usage and behaviors.

With the Electronic Logging Data (ELD) rule requiring the electronic tracking of information for many commercial drivers, including hours of service, total driving time and miles driven, adding telematics to make the most of this information is the next logical step for many fleet operators.

What are the Benefits of Telematics?
There are several opportunities when utilizing telematics for the company and drivers:
  • Operational Efficiency. Fleet owners can evaluate routes from both a safety and fuel consumption perspective and revise as needed to reduce delivery time and expenses.
  • Vehicle Maintenance. Tracking hours-of-use information and system alerts allows for scheduling of proactive vehicle maintenance and addressing issues before they escalate
  • Customer Experience. Two-way communication between drivers and companies enables more accurate customer communication on critical updates and delivery estimates.
  • Driving Behaviors. The halo effect of telematics makes drivers aware that behavior is being monitored, leading to smarter decisions and fewer impulsive actions. The data also enables coaching on what drivers are doing well and areas where they may need improvement.
  • Insurance Discounts. Participants in programs such as Amerisure’s FleetAlliance® can receive premium discounts and eligibility for additional reductions based on fleet performance.
Participation in Amerisure’s innovative FleetAlliance® program provides the benefits of telematics without out-of-pocket expenses. The program also provides direct access to Amerisure’s Risk Management team for successful implementation and management. To learn more, contact your Risk Management Consultant at (800) 257-1900 or riskmanagement@amerisure.com.
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