Implementing technology, specifically telematics, in rental fleets could change the insurance risk profile and lead to lower premiums, according to telematics provider In-car Cleverness and Next Vehicle Rentals.
While some vehicle rental firms have already embraced telematics to deal with accident rates as well as theft and fraud, others are still not on board. From In-car Cleverness’ estimates, the adoption of telematics can save the rental industry around £5m, or around £5,000 per business, in insurance premiums each year.
The rental sector is realising that if customers are aware that their driving behaviour is being monitored by the rental company, then it’s likely that they will drive more carefully and avoid accidents. Companies can also benefit from lower rates of theft and fraud, so insurers can offer better rates.
Paul O’Dowd, sales manager at In-car Cleverness, elaborated: “Technology is a game changer for any business with a fleet of vehicles, but analysing the rental sector alone our customers are typically able to slash insurance costs by 20% or more.
“Some businesses negotiate a substantial contribution to the cost of adopting the telematics technology itself, and so can benefit from a lot more than just cutting insurance bills.”
Steven Cooke of Next Vehicle Rental added: “There’s no doubt insurers are taking notice of how telematics and technology can reduce risks. Insurers will review individual cases but savings are available when risks go down.
“Our insurance company actually contributed the cost of the roll-out of telematics across our fleet. They are actively supporting us to reduce vehicle theft and losses. As a result, its contribution amounted to an insurance saving of over 18%.”