How Telematic Systems Can Help Mitigate Loss

In the technological age we find ourselves in, fleet managers have been searching for modern solutions to improve driver safety and mitigate potential loss within their business. One growing trend is the use of telematics in the transportation industry. Now more than ever, business owners in the industry are turning to telematics to effectively reduce risks within their operations. In this blog, we will break down the function of telematics and how it can help you mitigate loss. 

What Are Telematic Systems?

Telematic systems are a tool used to monitor vehicles, assets, and equipment. Utilizing telematics helps optimize fleet management by using a GPS or onboard data system (OBD) which collects important information as well as tracks the real-time location of vehicles. 

Through telematics, your fleet’s movements and activity can be accurately tracked and reflected on a computerized map. Many commercial and public transportation vehicles have already integrated such systems into their management, which has led to a decrease in maintenance costs and improved monitoring of equipment. 

Reduce Costs & Improve Safety

Companies have an obligation to protect their employees and equipment. The use of telematic systems can drastically improve safety within an organization. 

While these systems may be costly to implement at first, companies that adopt and utilize telematics can see a return on investment in the long run through better safety and more effective fleet management.

Telematics goes much further than just insurance. It can help optimize fuel consumption, keep track of maintenance, improve record keeping, and reduce overall delivery time. Telematics can be used to identify unsafe driving behaviors through onboard sensors and geo-tracking.

Although some drivers may be hesitant to change, it’s important to educate them on the importance of telematics. Through feedback, training, and incentives, you can help reinforce safe driving habits within your organization. 

In The Case Of An Accident

No matter how much safety preparation your drivers go through, accidents can still happen. In the case of an accident, having telematic systems such as an event data recorder (EDR) installed in your vehicles can potentially help mitigate loss from lawsuits. For instance, EDRs can record pre-crash vehicle dynamics and driver operations at the time of the crash. This information can be extremely valuable to protect your business and driver if legal issues were to arise. 

EDRs are also useful for developing more effective motor vehicle safety programs which your company can utilize to train drivers in the future. With the advanced technology we have at our disposal today, there is no reason business owners shouldn’t take the proper steps to protect the safety of their company, drivers, and vehicles. 

Still Have Questions? TIB Insurance Is Here To Help

After reading through the function and importance of telematic systems in the transportation industry, you may be considering implementing this technology in your company. If you have any questions about telematics or related insurance policies, TIB Insurance is the place to go. Our team holds niche expertise in the industry and can guide you through all your commercial auto insurance needs. For more information on how we can help protect your business, please contact us today.