The Power of Telematics: Curbing Rising Insurance Premiums for Commercial Vehicles
by Brandon Laam, Vice President, MOVER’S CHOICE Insurance Program
The Driving Forces Behind Increasing Insurance Premiums
Worsening traffic congestion, the prevalence of distracted driving, and inexperienced drivers due to the labor shortage continue to elevate the risk level for collisions, leading insurers to raise premiums to align with the heightened risk. Compounding that are increasing costs of claims due to inflation, nuclear verdicts, higher vehicle repair costs and medical expenses.
Another significant contributor to rising premiums is the evolving regulatory landscape governing commercial vehicles. With changes in legislation and safety regulations, such as Electronic Logging Device (ELD) mandates and Hours of Service (HOS) regulations, movers are faced with additional compliance requirements. Non-compliance with these regulations can result in penalties and increased insurance premiums, as insurers perceive a higher risk associated with businesses that do not adhere to industry standards.
Taking the Wheel on Risk
With the advent of AI-powered telematics in fleet management, commercial vehicle operations and their insurers are among the first to benefit from this advanced technology. By collecting and analyzing real-time data on factors such as speed, braking, acceleration, and mileage, telematics devices provide fleet managers and insurers with a comprehensive understanding of how vehicles are being operated. Dash cams can provide crucial evidence to help determine responsibility for an accident, removing any uncertainty regarding fault and compliance.
Real-time data helps assess risk more accurately, enabling insurers to reward safe driving behavior with lower premiums. It can also be used as an opportunity for fleet managers to offer incentives to drivers who demonstrate safer driving practices. This not only contributes to a decrease in the number of accidents and claims, resulting in long-term cost savings, but also fosters a culture of safety. Business owners can proactively identify areas for improvement, develop targeted driver training, and optimize their operations to minimize risk.
Telematics Put Safety in the Driver’s Seat
The integration of telematics technology offers a compelling solution to the challenge of rising insurance premiums for movers and has already shown strong results in claims reduction for one MOVER’S CHOICE insured. Over a four-year period, Oz Moving & Storage reduced their claims frequency by 59%. “The AI component talks to drivers, identifies distracted driving in real time, and tells the driver to look at the road. If we had known how much of a big game changer this would be for our fleet, we would have absolutely invested in cameras on the trucks sooner,” notes Nancy Zafrani, general manager of Oz Moving & Storage.
As the moving and storage industry continues to adopt this transformative technology, the future looks promising for fewer accidents, reduced frequency and severity of claims, and stable insurance premiums.
MOVER’S CHOICE is an insurance program created exclusively for the moving and storage industry. For more information on our insurance coverages and loss control services, visit www.MoversChoiceIns.com or contact Brandon Laam.
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