According to OSHA, motor vehicle crashes cost employers $60 billion annually in medical care, legal expenses, property damage, lost productivity, and more. Looking at this in another way:
- The average crash costs an employer $16,5001
- A crash resulting in an injury costs an employer on average $74,0001
- Costs can exceed $500,000 when there’s a fatality1
That’s why more transportation companies, fleet managers, and small business owners are investing in fleet telematics to help them make more informed safety decisions and set expectations for their drivers and vehicles. By combining vehicle performance and driver data, fleet telematics solutions deliver the “keys” to safety. Management access and oversight of results allow decision-makers to drive down costs, increase compliance, and boost productivity.
It Comes Down to Data
Fleet telematics solutions are an excellent real-world example of Internet of Things (IoT) technology, and the concept is simple: a device is installed into a vehicle or an app is downloaded and connects via the internet to software that can be accessed from computers, tablets, and smartphones by drivers and management personnel alike.
While each fleet telematics solution offers a different set of features, they all generally enable fleet managers to make informed decisions and set expectations related to driver behavior, vehicle maintenance, and routing. They deliver and make sense of the “big data” required to make vehicle and driver safety actionable and measurable. They make it possible for decision-makers to:
- Act, Not React: Fleet managers can use the data provided by their telematics solutions to help mitigate accident risks, prevent unnecessary wear-and-tear on vehicles, and make sure vehicles receive timely and appropriate preventive Managers get insights into various diagnostics, such as gas consumption, speed, idle time, and the number of left-turns made. Adding it up paints a picture of a vehicle’s health and performance.
- Stay Agile in Real-Time: Aside from informing of decisions that are made ahead of time, what about those made in-the-moment? Most data is available to users in real-time, thanks to GPS technology and cloud-based anytime/anywhere connectivity. Managers can set alerts for a number of metrics for 360-degree visibility into vehicles’ locations and drivers’ events. Is a traffic situation detected ahead? Call the driver, reroute them, and keep them out of harm’s way.
- Keep Drivers Informed: Data can also be shared with drivers to help them see what they’re doing well and where they can make improvements. This information not only makes them more accountable for their time on the road, but it helps to create a safer driving culture at the company. It can also be used to create safety and accident prevention programs that keep drivers up to speed on best practices for operating vehicles, driving defensively, and eliminating distractions.
It’s easy to see why more organizations are deploying telematics across their fleets. They’re getting data-driven insights into what it takes to keep vehicles and their most important assets—employees—safe. For more information about how telematics and driver/fleet safety can benefit your company, contact your local Acadia Insurance loss control representative or your independent insurance agent.