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Improving Commercial Auto Insurance Premiums!

Managers of commercial truck fleets in Florida too frequently fail to grasp the value of telematics-based insurance. Though it is a clear value to private motorists, fleet managers are hesitant about the unknown return on investment.

Losses not covered by insurance, such as late-delivery penalties, or accidents caused by a company driver, mean companies have to increase production, which, on top of insurance, costs money as well. Late-delivery penalties and accidents, both caused by company drivers can be avoided if two measures were taken: the first is making drivers' employments conditional on their driving habits and history, with the second being introducing telematics-based insurance, insurance based on the amount you drive, not on the amount the average driver drives. That is the rate most drivers are assessed.

Drivers who make a living as commercial drivers have their auto insurance needs covered by their employer, except the auto insurance coverage they have for personal purposes. If commercial drivers were responsible for their auto insurance, they would drive more carefully and likely cause fewer accidents. Moreover, if fleet commercial vehicles were equipped with telematics devices, companies would assess an insurance rate that reflected total distance their fleet of drivers travel, not the average distance traveled.

Though telematics are an added and, to some, an unnecessary expense, they last many years and ultimately “pay for themselves” within a year or two. If managers of commercial truck fleets were to couple safer drivers and telematics-based insurance, they could receive auto insurance discounts comparable to what private motorists receive.