That’s the message from telematics supplier Teletrac Navman, which has launched a campaign with insurance consultancy firm Jelf to highlight the positive impact that telematics can have on insurance costs.
In March, the government changed the way personal injury compensation payments are calculated, known as the Ogden rate.
John Marks, Jelf’s sales director, explains: “When courts assess compensation awards they take into account how much interest could be earned based on the discount rate.
“Since 2001 the rate has been set at 2.5%, meaning this amount is discounted from the compensation insurers would pay. From March 20 2017, the Ministry of Justice changed the discount rate to -0.75% meaning initial payments from insurers will be significantly higher. This change makes it inevitable that there will be an increase in premiums.”
Peter Millichap (pictured), Teletrac’s UK marketing director, says operators may not be aware of rising premiums until policies are renewed.
“Telematics is a critical tool in analysing and improving risk management, however fleets must actively use the software in order to reduce premiums,” he advises.
As well as using telematics to gather evidence of risk management, other steps that operators could take include installing integrated cameras, improving driver behaviour and ensuring fleet vehicles are fit for purpose.
“No business wants to incur additional unexpected costs,” Millichap adds. “With proper planning and a positive approach towards risk management there are steps that can be taken to help reduce the potential impact.”