4 Insights telematics reveals about the effects of geography on fleet insurance
- What is your average length of haul?
- Where are your trucks garaged?
- Is your mileage typically on interstates or short local routes?
- Differentiation of mileage types
International Fuel Tax Agreement (IFTA) reports show only how many miles fleets are running in each state. They don’t take into account more precise route analytics, including the varying characteristics of those miles. Because telematics shows where exactly those miles are located, i.e. highway miles, highly congested city driving, etc., you’re not penalized if a fleet is domiciled in a lower-risk region of a higher-risk state and vice versa.
- Residential vs. highway miles
Last-mile logistics carry a higher risk than long haul miles. Logging miles on an interstate also means faster speeds that increase the chances for a more severe crash, but less exposure to pedestrians. Very often agents and fleets alike claim limited residential exposure, but in-cab telematics data can reveal a different picture, one on residential streets.
- Where trucks are domiciled
More metropolitan areas have a higher risk of litigation. Florida is one of them. The state draws massive amounts of tourists who, unfamiliar with the area, are prone to driving slowly and routinely exit and re-enter highways. As a result, trucks domiciled in Florida will rightfully be subject to a higher auto insurance premium. On the contrary, those reporting being domiciled in Ohio, will receive Ohio rates. When a fleet reports being domiciled in Ohio, but their telematics data reveal they’re really domiciled in Florida, their fleet insurance coverage is not likely going to be adequate for their true risk.
- Refined radius of operation
Traditionally, the radius of operation was calculated by transferring IFTA miles to a radius calculator, which attributed the miles to broad radius brackets that could span from 201 miles to 500 miles. It’s a crude way to gather these details, especially given that each carrier fills out radius buckets differently. Telematics refines radius of operation based on truly objective and reliable GPS data.
Telematics delivers court-admissible data that accurately reflects risk and ends the need for back-and-forth disputes. Put simply, you get an honest quote based on unbiased information.
Ultimately, it’s all about data