Car Insurance Co. Offers Monitoring-Device Discount to Commercial Clients

car salesman standing in lotTelematics in commercial autos could become more common as insurers begin offering discounts to some companies that install the monitoring devices in their vehicle fleets.

Travelers Auto Insurance recently announced they will offer a 15 percent discount on certain commercial auto insurance policies that cover vehicles with telematics installed.

The insurer cites a recent study from the Virginia Tech Transportation Institute (VTTI) indicating that such devices can positively influence driver behavior.

“Our research shows that combining onboard safety monitoring with behavioral coaching leads to a significant reduction in the number of risky driving events,” stated Jeff Hickman, the lead researcher at the VTTI.

According to the insurer, telematics give companies data about driver behavior, vehicle routing and fuel efficiency that can be used to pinpoint negative driving behaviors and cut costs.

Companies with Travelers insurance can become eligible if they show that a significant number of their vehicles have the devices and that they are being used effectively.

“By using this technology and the wealth of information it can provide, fleet and risk managers can have data that will aid in developing specific training programs that positively modify driving behavior,” stated Chris Hayes, director of transportation services at Travelers Risk Control.

Travelers isn’t the only car insurance company that offers discounts based on driving habits.

Similar discount plans are available for drivers looking for low cost insurance plans. In several states, Progressive offers a special plan to drivers who prove they are safe, low-mileage motorists through their Snapshot Discount policy. The Progressive device program, however, only requires the consumer to collect driving data over the course of 30 days.

About Ben Zitney
Benjamin Zitney has been covering the auto insurance industry for the past 2.5 years. Before coming to Online Auto Insurance News, he produced an extensive company history of the 30-year-old California Joint Powers Insurance Authority and worked at the Cal State Long Beach Daily Forty-Niner as a reporter, copy editor and news editor.

No comments yet.

Comment on this article