Fleet News

Telematics opens the door to reduced insurance premiums for fleets

Insurance specialist Aviva is offering fleet operators who have telematics systems installed a new policy that aims to cut accidents and lead to lower premiums.

Aviva was the first company to offer pay-as-you-go insurance which involved having a ‘black box’ fitted by the company, thus effectively keeping an eye on the driver’s on-road behaviour. This deal was aimed mainly at younger drivers.

The new policy is being offered to car and van fleets which already have their own telematics systems fitted.

The systems must meet a number of criteria, including maximum speed notification when a vehicle exceeds 70 mph, the ability to record abnormal acceleration braking, cornering and the duration and distance of each journey and the ability to identify both the vehicle and the driver.

Risk experts at Aviva will then sit down with fleet operators and agree a target for a reduction in accident costs. If that target is hit, Aviva will give back an annual rebate in the form of a profit share.

Another benefit of the policy is that fleet operators will have access to Aviva’s panel of 12 risk advisers, who are mainly ex-fleet operators themselves.

They will help analyse the data from telematics systems and make suggestions as to how this data can be used to improve safety, for example where one driver is seen to be constantly exceeding the speed limit, or using more fuel than another.

Mark Keavney, development manager – commercial product at Aviva, said: "We gained a lot of experience in the sector the first time around and we have applied this knowledge to deliver insurance cover that’s relevant and has value in today’s market.

"Businesses have invested much more heavily in vehicle telematics in recent years and our approach enables customers who already have the technology installed to maximise the insurance benefits when buying cover for their fleet.

"We recognise that the cost of running fleets is increasing and so we are providing a cost-effective way to reward customers for making a commitment to risk management through using telematics to capture and analyse data on their drivers’ behaviour behind the wheel.

"By taking the safety of your fleet further by installing telematics - and provided they meet our criteria - then companies will be able to take advantage of this policy."

The Aviva telematics cover is available on Aviva’s Fleetwise and Fleetwise Self Drive Hire products, for fleets where at least half of the vehicles have telematics technology installed.

Author: Trevor Gelken


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