Secure Cheaper Car Insurance Tracking Employee Driving Performance

As our lives become increasingly dependent on technological connectivity, it’s perhaps not surprising that the car insurance industry has embraced GPS tracking technology or telematics.


Telematics has become standard for corporate vehicle fleet management for some years but now it has emerged as an increasingly popular choice for businesses with drivers under 25 embracing the tracking technology fully.

The insurance industry is driving this change with over 300,000 drivers now using GPS trackers in the UK as part of their insurance policies. The GPS tracking firm, CanTrack, brought a recent report from UK market research firm Consumer Intelligence to our attention that shows how this adoption of emerging telematics technology is dominated by younger drivers.

How GPS Tracking Can Benefit Your Company Premiums

With a 9% rise in so-called black box car insurance policies over the last eighteen months in the UK, drivers have become more interested in using telematics with 53% of those surveyed agreeable to such policies.

And the age group that is most willing to take on telematics insurance policies are the 18-24-year-olds. With mobile apps used for almost every area of life, it’s no coincidence that younger drivers have embraced technology in this area too. Almost a quarter (22%) of male drivers aged 18-24 currently have a telematics policy while 14% of women in this age group also use GPS trackers.

But it’s not purely the utility of such GPS tracking devices that is attractive. With insurance costs so prohibitive for company vehicles, business owners can can benefit most from telematics policies as they can prove to their insurers that their young employees are just as safe or safer on the roads as their more experienced peers (or competitors) without complicated pivot tables.

And, younger employees also have fewer concerns about sharing data than other age groups reckoning that any premium savings will outweigh the inconvenience of constant scrutiny.

Trip Log Details

Telematics devices, like the Snapshot from Progressive, present a whole new way to monitor employee usage of company cars. Depending on how you define outsource, these gadgets can help you outsource data tracking for one area of operations. Before this technology, you were forced to take employees at their word when it came to tracking mileage and business trips. With this new telematics technology, trip details are tracked in an accompanying app. This driving data can then be used by business owners like you to view info about a specific business trip. You can see all about where employees are braking too hard or accelerating too fast. These details have never been available to employers before. Clearly, access to employee driving data is a considerable benefit for business owners.

But does GPS tracking technology enhance the safety of employees?

Driving By The Numbers

Insurance companies reward drivers using telematics policies by analyzing their driving performance. They analyze how driving habits like harsh braking and excessive accelerating are linked to the car’s performance and feed that back to the fulfillment companies using those services. Awareness of bad driving habits improved safety, reducing motor accidents substantially according to insurance statistics.

Some GPS trackers will even highlight the precise locations of an accident so emergency services can get there quicker as well as providing accident data like speed at time of crash for future investigation.

Not Just How Well You Drive, But How Much

Another variable that telematics devices take into consideration is the distance drivers travel on average. If you and your employees do not use corporate cars to drive long distances, these devices can help to lower your insurance rates. The less you and your employees drive, the cheaper car insurance is for your company, similar to the way that waste management services are cheaper the less waste you generate. This is something to think about, especially if your business cars do gain quite a bit of mileage when they are used. Telematics devices, in this case, may not be the best idea, as savings from safe driving may be cancelled out by the high amount of mileage being put on the car. Weigh your options before deciding. But remember, for most businesses, telematics data will be incredibly beneficial for cheaper car insurance rates and safer employee drivers.

For All Things Telematics, Look For CanTrack

For more information on GPS fleet and asset trackers go to CanTrack is a leading UK provider in the telematics, fleet and asset tracking industry with over 10 years of experience and innovation. Their Car Tracking System is the fastest way to get your car tracked or your money back.

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