There are many ways in which ELDs can help insurance companies and carriers have easier and clearer access to information and help transportation insurance activity become more transparent and fair than it is so far. Read this blog to learn how.
It’s difficult to think about transportation without also thinking of insurance. In fact, it is often thought that the origin of insurance was born from marine transport and expeditions. Though the landscape of insurance has changed drastically – with the strangest things like plants around your home, fantasy sports players that might get injured, and even alien abductions now insurable – transportation continues to be an industry that insurance is tied to without any second thoughts.
Although there are many benefits of being insured, many people have grown to distrust insurance companies, only buying their services when forced to by regulations. This skepticism is oftentimes due to the fact that there have been cases where damaged parties were treated unfairly... The concept of justice can be complex, but integrated ELDs and driving data are making a positive change towards transparency and efficiency in the transportation insurance space.
How exactly can that happen? There are many ways in which ELDs can help insurance companies and carriers have easier and clearer access to information, optimize their operations, and help the activity become more transparent and fair than it is so far.
Firstly, ELDs can provide real-time data on fleet safety, allowing insurers to assess the risks associated with a particular driver or vehicle. This enables them to accurately price insurance policies and lower their exposure to potential claims. This in turn ensures fair insurance rates and reliable coverage for carriers while also setting an incentive for truckers to be cautious behind the wheel and protect themselves and the other drivers.
Secondly, ELDs can help to prevent accidents by providing drivers with alerts to potential hazards and warnings to avoid collisions or risky routes. This helps reduce not only the number of accidents but the severity as well, leading to fewer claims and lower payouts for insurers, and ultimately, lower insurance charges for carriers.
The math is simple. If there are fewer incidents to cover, insurance companies lower their costs. So, they can reduce their price (which is the cost that carriers face) and still earn good money while providing a decent service that keeps their customers secure and compliant.
Finally, ELDs can provide detailed data on vehicle usage and performance, allowing insurers to assess the overall safety and reliability of a vehicle and adjust premiums accordingly. This brings efficiency and a higher level of certainty to both drivers and insurers, leading to better functioning of the market as a whole.
The optimization and transparency obtained through easier and clearer access to relevant information show the benefits of integrating the whole transportation ecosystem. And this trend of interconnectedness is only expected to grow with electric and autonomous vehicles.
Overall, using ELDs can help insurance companies better manage their risks and reduce their losses, and help carriers improve their fleet´s driving to reduce accidents, pay lower rates and save money. Where TruckerCloud plays its role is by helping integrate ELDs with TMSs, resulting in better and faster access to key data in order to make better, more strategic decisions