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How GPS/Dash cams Affect Insurance Costs

With rising gas prices and sky-high inflation, fleet managers are constantly searching for new ways to save money this summer. Most companies know that GPS and dash cams can help reduce costs by reducing accidents and promoting good driver behavior; however, these tools can also help to reduce insurance premiums as well.  

It just so happens that July is also vehicle theft prevention month, so there couldn’t be a better opportunity to reduce your insurance costs by leveraging tools to manage risk. Here are a few ways GPS and dash cams can help: 

What Is A Dash Cam? 

A dash cam is a digital video camera that is constantly recording activity in front of the vehicle (through the windshield), in the vehicle cabin, and/or out the rear window. By keeping a complete record of the vehicle’s activity and surroundings, it’s able to capture video evidence of an accident as well as monitor driver behavior. Most fleet managers leverage dash cams to help promote driver safety. Many dash cams also are equipped with GPS technology to make it easier for fleet managers to locate the vehicle. 

How Dash Cams Help Reduce Insurance Costs 

  • GPS and Dash Cams Prevent Accidents 
    Your insurance premium is based on a risk calculation, and the number of accidents in your fleet over a defined period of time is one variable in that equation. By implementing GPS/Dash Cams, you can prevent reckless driving behavior, spot distracted drivers, and reduce the chance of an accident. All of this will ultimately result in a better driving record for your company and lower insurance premiums.  
  • Video Evidence Helps To Support Investigations 
    Insurance fraud is a major problem in the fleet management industry and staged or fake accidents can cost companies hundreds of thousands of dollars. When an accident occurs, dash cams make it much easier to see exactly what happened and validate the story. Video evidence makes it much more difficult to defraud an insurance company, which can fleet managers avoid rising insurance premiums 
  • Dash Cams Reduce Claim Cycle Times 
    There is a lot of administrative work associated with filing an insurance claim — both for fleet managers and for insurance companies. When an accident occurs, insurance companies often conduct investigations and ask for photos and documentation to support the claim. Dash cams and video evidence help to significantly expedite the process. As a result, your team will save valuable time and energy, and it’s possible your insurance carrier may even be willing to offer some type of discount for the dash cam installation.  

GPS and dash cams are both essential for saving fleet managers money, and lower insurance premiums are just one of the many benefits. These tools are becoming widely adopted across the industry. As of today, most insurance carriers don’t offer a direct discount for using these tools; however, there is a good chance this will change in the future. Until then, fleet managers can cut insurance costs by leveraging dash cams to improve driver behavior, reduce accidents, support investigations, eliminate administrative work.  

In honor of Vehicle Theft Prevention Month, we recommend you explore GPS and dash cam solutions for your fleet today.