Insurance Edge is declaring December the month of predictions, and one big development next year will be the application of telematics, plus mobile payments and fuel cards replacing cash, and other payment methods, for fleets large and small.
Sure, big fleets like the AA and RAC breakdown services have been using telematics for a few years now, with GPS location of the recovery vehicle being one of the big plus points. But the unexpected bonus for the AA was the fuel savings gained through improved driver behaviour. This fact will begin to persuade private motorists that telematics has something extra to offer.
How much fuel can be saved you ask? Well the AA fuel savings were between 10-15 percent on each vehicle, which equated to a cool £1 million saving during the first year of vehicle tracking across the AA fleet. The other aspect of managing any fleet, even if it is only a few delivery vans, is replacing cash and fiddly receipts with a fuel card.
According to the UK Federation of Small Business (FSB) organisation the main savings can be gained from weekly fuel payment on a single invoice, rather than daily transactions, plus you’re tracking mileage and individual driver fuel usage. That’s definitely a comparison worth making as a manager, because you can then check that particular vehicle to see if it has a problem causing higher fuel consumption, or discuss smoother driving techniques with your employee, or sub-contractor.
It’s worth noting that some telematics apps feature driver coaching tips and advice, with a points scoring system, which allows your company to offer a monthly reward or prize to the top scoring driver.
One more thing to consider is that your driver may prefer using a fuel card. No more cash to carry, which is always a security worry especially when paying for HGV tank fill-ups. Plus, drivers can often get discounts. For example Shell offer their Go+ card users 10% off hot drinks in-store, plus money off fuel for every tenth visit. You can find the best deals on fuel cards at iCompario by the way.
The big change in 2020 for telematics will be the rise of PAYG vehicle insurers like Zego and Cuvva, who are selling car, van and moped insurance via smartphone apps. The driver can simply login when they need Comp cover for a delivery job, commute, or road trip, rather than pay upfront for a 12 month policy.
Some of the new insurtech companies are also streamlining admin too, using automated systems and there will more of this in 2020. Sounds boring right? But here’s where it gets interesting; because the admin is done by robots, there’s often no charge, or a very small admin charge, for changing policy details like address, occupation, overnight parking location etc.
Those admin changes can add up to a hefty bill over a year if you manage a 20-30 vehicle fleet, with different drivers joining/leaving your company. Again, well worth thinking about.
The UK fleet market has led the way with telematics, as the savings are multiplied per vehicle and managers can see the benefits. Insurance Edge discovered that at the Insure Telematics Summit in October. The big question in 2020 for insurers and brokers alike is whether they can sell the advantages of dongle/smartphone telematics devices to the mainstream driving public, with vehicle tracking, accident data recording and emergency assistance.
All these bonus features could convince drivers that car insurance is about more than just price comparisons. Customer service, telematics app rewards, fuel savings and car security – especially for keyless entry cars – may yet sway many more UK drivers.
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