The role of AI in reducing fleet insurance premiums
Fleet management software now provides real-time visibility into fleet operations, handing Fleet Managers the tools they need to make data-driven decisions, implement streamlined processes, reduce costs and improve overall efficiencies.
A key benefit of ABAX Smart Mobility software is its ability to reduce insurance premiums – an important and ongoing expense to handle when managing a fleet.
In the past, insurers would base rates on a few key factors, mostly driver demographics. However, with the use of mobility data and AI, insurers are now able to use a much wider range of data points and this data helps them calculate more personalised and accurate rates for fleets.
How?
ABAX’s fleet management software has been proven to help Fleet Managers reduce road accidents and improve driver safety by identifying ‘high-risk’ driver behaviour before an accident occurs. Vehicle maintenance issues can also be identified before they become more serious. This data helps reduce the overall risk for insurance companies, bringing down premiums, and ensures company driving policies are being adhered to.
If you manage a fleet of rental cars with tracking software solutions installed, you could also realise lower premiums as the vehicles are more likely to be recovered in case of theft. Data gathered through our Smart Mobility technology can also simplify accident claims with insurance providers.
Usage-based insurance
Many businesses are turning to usage based insurance (UBI) models to provide a better customer experience that can save money and limit driver exposure.
Usage-based insurance is an option offered by some insurance companies, like Zego, that tracks your fleet’s driving and could result in lower insurance rates. UBI could also help you predict insurance costs more accurately year on year.
Case study: PPS saved £30,000 in insurance premiums
Courier business, PPS, recently saved £30,000 on its annual insurance premiums through a data-led insurance partnership between ABAX and Zego. Mileage-based insurance pricing means that PPS now never pays more than the minimum base rate when its fleet is off the road, and ABAX’s tracking software accurately records mileage alongside real-time data.
Contact our team if you’d like more information on how fleet tracking software solutions could reduce your fleet’s insurance premiums.