As part of its ongoing commitment to improve driver safety for its commercial auto customers, Travelers announced a potential discount of up to 15 percent on certain auto liability insurance premiums for qualifying businesses that effectively use telematics technology to monitor their owned commercial fleets and driver behavior.
According to a recent study conducted by the Virginia Tech Transportation Institute (VTTI), funded by the Federal Motor Carrier Safety Administration (FMCSA), implementation of driving behavior management systems using in-vehicle telematics devices can result in a significant reduction in the number of risky driving behaviors. Armed with the results of this research, Travelers seeks to incent its customers to coach their employees in safe driving by using data obtained from telematics devices.
"By embracing fleet vehicle telematics and offering discounts to our commercial auto customers that effectively deploy this technology, Travelers is furthering its commitment to improving driver behavior and roadway safety," said Scott Higgins, President, Travelers Commercial Accounts. "Customers who are already taking advantage of the latest telematics technology are encouraged to work with their independent insurance agent or broker to see if they qualify for the discount."
Depending on the specific type and brand of vehicle telematics deployed, businesses will be able to receive information about driver behavior, vehicle routing, and fuel efficiency. To qualify for a discount, businesses must show they have installed vehicle telematics devices in a sufficient number of their fleet vehicles and that they are actively incorporating safety information from the devices into their ongoing safety feedback to drivers, at least on a quarterly basis.