How Insurance Companies with Telematics Programs Increase Fleet Safety

Car insurance and auto insurance premiums have been on the rise for the last decade. The insurance industry has seen insurance rates increase between 6-12% in 2019 and they are predicted to climb by 20-25% in the next few years, according to a keynote at the CCJ Solutions Summit. Though rising rates can be attributed to higher vehicle costs and litigation expenses, certain factors—like distracted driving behavior or inexperienced drivers—can also exacerbate insurance policy premiums. 

To help your fleet increase safety and lower costs, consider an insurer that offers insurance programs with incentives for adopting telematics devices or dash cam technology. For example, an insurance provider may offer a subsidy to insureds who install dash cams or offer a discount on their overall insurance premium.  

A smart solution for transportation companies facing rising costs

The FMCSA estimated that fleet transportation accidents cost over 2,000 lives and $20B in financial losses in 2017 alone. 

To help mitigate these risks and improve safety on the roads, telematics providers like Samsara partner with insurance providers to incentivize the use of telematics devices or dash cam technology. These solutions are proven to help fleets decrease the frequency and severity of safety-related incidents. 

In fact, 90% of customers using Samsara’s technology platform—which includes tools for driver safety, fleet management, and compliance—have been able to increase safe driving habits within their fleet, and more than half of customers have used Samsara dash cams to exonerate their drivers. As a result, 15% of Samsara dash cam customers have been able to reduce their insurance premiums.

How a vehicle telematics program can support loss control initiatives

Insurance premiums have been on the rise for the last decade across the industry. But over the last few years, a rapid increase in legal verdicts exceeding $10 million has increased the pressure on transportation companies and insurers. Some experts predict that premiums could increase 20-25% in the coming years, even if a company has a proven track record of safety. This continued rise in costs has sparked a more collaborative approach to loss control and risk management, which is when insurers actively partner with their customers to identify areas for safety improvement and help them reduce costs.

For some insurance companies, this means partnering with a telematics provider to help customers stay proactive about managing costs and keeping drivers safe. “Loss costs and safety continue to be top concerns for our customers, so they are top concerns for us as well,” said Mike Haswell, RLI Transportation Vice President of Business Development and Retention. “There’s a significant need in our industry to support transportation companies with their loss control initiatives.”

RLI, for example, is partnering exclusively with Samsara to provide their transportation customers with a complete video-based safety solution. In addition to free Samsara AI dash cams, RLI customers who participate in the program will receive a discount up to 5% on their insurance premium. Through the partnership with Samsara, RLI will use incident and safety data to better serve their customers with tailored safety programs and training, as well as data-driven underwriting and claims decisions.

How telematics technology can improve fleet safety

Telematics technology coupled with AI-enabled dash cams can provide your fleet with real-time insights into driver behavior. These can inform your fleet’s safety strategy and help employees be safe drivers. 

Samsara offers an advanced video-based safety solution that combines internet-connected AI Dash Cams, cloud-based safety, and coaching software to help fleets of all sizes reduce accidents, prevent false claims, lower costs, and encourage good driving. Samsara’s dual-facing dash cams capture external and in-cab video for a complete view of what’s happening on the road and in the cab, so you can quickly identify instances of distracted behavior and coach drivers accordingly. AI Dash Cams combined with Samsara GPS tracking devices also automatically inform fleet managers when safety-related events, like hard braking or cornering, are detected. When an event is detected, you’ll receive alerts, reports, and captured video footage of the incident that can be used as a jumping-off point for coaching conversations. By providing visibility into vehicle locations, near-misses, or dangerous behavior, Samsara lets fleets take action on their telematics data to improve safety. 

4 ways Samsara AI Dash Cams help lower insurance costs

Samsara helps insurance partners and their customers build safer fleets with AI Dash Cams and telematics solutions. Safer fleets lead to fewer accidents, fewer claims, lower risk, and overall improved insurance processes. 

Samsara partners with a wide variety of auto insurers to offer preferred pricing, subsidy offers, and premium discounts for installing Samsara AI Dash Cams and sharing safe driving data. In addition, 15% of Samsara dash cam customers have been able to reduce their insurance premiums, despite the fact that premiums are on the rise industry-wide. Read on to learn how Samsara can help:

1. Reduce accidents              

Our advanced AI features are designed to enhance vehicles for safer and better driving. Studies have shown that technology such as forward collision warnings, distracted driving detection, and in-cab alerts can reduce rear-end crashes by 28%, fatalities by 44%, and injuries by 47%.

How much could you save? Markstein Sales Company saved over $100,000 annually on accident-related costs by reducing at-fault accidents through their video-based driver coaching program.

2. Avoid false claims             

With Samara AI Dash Cams installed, you can use Proximity Search and video retrieval features to pinpoint your vehicle’s location and download HD footage within minutes, making it easy to exonerate drivers on the spot, bypass lengthy claims processes, and eliminate unnecessary payouts.        

How much could you save? Mitchell Companies experienced a 34% decrease in auto claims and saved an estimated $150,000 - $200,000 by exonerating drivers with Samsara dash cam footage. 

3. Improve driver behavior              

Build a comprehensive fleet safety program with features like configurable safety scores that allow you to customize, track, and gamify results. This creates a positive safety culture and drives measurable impact to improve driver behavior, reduce accidents, prevent false claims, and lower costs. 

How much could you save? Dohrn Transfer Company used Samsara’s driver safety scores as the foundation for their safety rewards program and saw a 88% reduction in safety-related events. 

1. Decrease CSA scores               

For some fleets, your CSA score can have a significant impact on your insurance premium. By utilizing Samsara features such as electronic DVIRs or Hours of Service (HOS) reporting, along with implementing driver coaching, you can lower the risk of your fleet and improve your score.  

How much could you save? Wagner Equipment Co reduced their CSA score to zero in less than one year by coaching drivers to be safer on the road with safety-related event alerts.

Learn more about how Samsara’s partnerships with insurance companies 

Samsara helps insurance partners and their customers build safer fleets with dash cams and telematics solutions. 

Leading specialty transportation insurer RLI Transportation partners exclusively with Samsara to provide their customers with a complete video-based safety solution. Nationwide, one of the largest insurance and financial service providers in the U.S., also partners with Samsara. They provide a subsidy to eligible insureds who install Samsara telematics solutions and meet safety-focused key performance indicators. 

“As we continue to listen to our members, we know that our trucking clients seek innovative solutions to protect their drivers, their trucks, their reputations and ultimately, their livelihoods,” said Gary Flaherty, Vice President E&S Commercial Auto at Nationwide. “This new capability will bring needed protection and ease to these clients to defend against outside hazards and learn from operational insights that translates to their bottom lines.” 

Samsara partners with various other insurance companies including Progressive, Canal Insurance, HDVI, Koffie, and more.

Invest in your fleet safety today

Samsara’s technology platform includes tools for driver safety, fleet management, and compliance that deliver results. In fact, 90% of our customers have been able to improve safety within their fleet, and more than half of dash cam customers have used Samsara to exonerate their drivers. These safety improvements and better visibility into risk have also helped 15% of Samsara dash cam customers reduce their insurance premiums.

Want to learn more about Samsara’s insurance partnerships? Read more about our safety-focused partnerships with RLI and Nationwide, or reach out to insurance@samsara.com today.