How to Lower Insurance Premiums with ELD Compliance
Lower Your Insurance Premium with ELDs.
The FMCSA is considering raising the insurance minimums for the first time since the 1980s. For this very reason, fleets can’t afford to let poor recordkeeping compromise CSA scores which, in turn, increases insurance premium. ELDs can help a great deal with this issue.
While ELDs will not prevent the premium increase from taking place they can certainly protect fleets from premium hikes by lowering the tendency of risky driving, logging errors, and violations. Here are a couple of ways how ELDs can reduce your insurance premium:
- Insurance premiums heavily rely on CSA scores. ELDs sync with the truck’s engine thus allowing carriers to monitor driver safety & pinpoint risky behaviors. Thus, the CSA scores will improve and the insurance premium will go down.
- ELDs can provide additional data to insurance providers as they compare it against risk models. This can deduct the impact of CSA scores on insurance premiums.
Leaders in the insurance industry have already suggested incorporating ELD data into the assessment process when determining an insurance premium. This can be good or bad news, depending on your drivers.
CSA scores are calculated by using the previous two years’ data which, in turn, contributes to the percentile rankings to fix the premium costs. As ELDs improves the CSA scores, carriers will see their insurance premiums go down as they implement this technology.
Drivers who use ELDs are less prone to accidents and fewer crashes mean lower insurance premiums. In addition, the potential for ELDs to lower the insurance premiums is also linked to their ability to reduce liability at the time of accidents. When it comes to maintaining affordable insurance premium, ELD is a worthy investment to consider.
Looking for an ELD solution to decrease your insurance premiums? Request an online demo to learn more!