GPS tracking technology is not only greatly appreciated by transport firms that have long sought a way to better monitor the activities of their drivers and the vehicles they operate, but also insurance firms who try to gauge what kind of risk a transport firm poses to their bottom line. When determining insurance rates for a client, insurance firms try to determine the risk that this client will make a claim and of what amount it will be. The less likely a client is to make a claim for aspects covered by their policy, the lower the rate the insurer is likely to give them. This is very important for transport firms who are heavily invested in assets that must be insured.
With GPS tracking technology, as provided by http://www.vehicletracking4u.com/vehicle-tracking/, a transport firm is able to cut back on loses related to theft of a vehicle. This is because even with a vehicle having been stolen, it should be easily recoverable, along with its cargo, by simply using the tracker. When it comes to theft, the sooner action is taken the better the chances of full recovery. Another benefit is that the monitoring of the vehicle’s location tends to make the drivers more careful about the routes they follow. Most transport firms will provide delineated routes to be followed. When unmonitored, drivers often take detours for personal business that can lead into unsafe areas that make the vehicle and its cargo more vulnerable to theft and vandalism. Ensuring that the vehicle travels clearly indicated routes helps to limit this risk.
Another reason insurance firms appreciate tracking systems is because they also monitor the driving habits of the driver. Vehicle speeds can be tracked. Over speeding is known to lead to traffic accidents so being able to monitor this behavior tends to influence the drivers to be more responsible on the road. Because of the lower risk of the vehicle being irrecoverable after theft, ensuring of safer routes being followed and improved driver responsibility, insurance firms will deem a transport firm a lower risk and offer discounts that will reduce the insurance premiums they will pay. With quality tracking systems, the fleet manager can even receive alerts when a vehicle is outside its prescribed route or if the driver is over-speeding. This improves the reaction time of the fleet manager in correcting the situation as GPS tracking is done in real time.