How to manage and lower your fleet costs |

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How to manage your fleet operation

Cut operating expenses and extend the life of your vehicles.


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Your business can cut down on operational costs to make your fleet more efficient, reducing mileage and gas, lowering maintenance costs and improving customer service. Learn how to optimize your businesses vehicles.

How do I reduce fleet vehicle operating cost?

Ongoing fleet costs can be one of the most significant expenses in your operating budget. In addition to performing preventative maintenance and obtaining the right commercial car insurance coverage, consider these money-saving options:

  • Driver telematics. GPS tracking and monitoring driving habits can help you identify problem areas to reduce costs and help lower insurance premiums.
  • Fleet management system. Streamline downtime, maintenance and refueling. Find mobile mechanics or fuel delivery companies to visit your garage to service your vehicles when they aren’t in use.
  • Negotiate rates. Large fleets give you more negotiating power for lower rates for fuel and mechanics.
  • Routes. The routes drivers take effect efficiency and fuel consumption, which will influence operating costs. For example, UPS famously eliminated 90% of left turns from driver routes to save 10 million gallons of fuel each year.
  • Own vs. lease. Figure out which type of ownership is right for your business. Consider business vehicle financing to get access to additional capital.

How many vehicles are considered a fleet?

Most insurers consider a fleet to be at least five vehicles, but some policies allow for as few as two. However many vehicles are in your fleet, you can typically get a multi-vehicle or fleet discount for insuring all your fleet vehicles with the same insurer.

What are the benefits of lowering operational costs?

Improving the way you manage your fleet can help you cut costs and save time. Here’s a list of points to focus on, and how they reduce costs in the long run:

  • Reduce mileage and gas. Plan your routes more efficiently to save on gas and cut fuel costs.
  • Improve safety. Driver training can improve driver safety, reducing the risk of accidents or damage to vehicles and drivers.
  • Extend the life of your vehicles. With proper maintenance and more efficient management, your vehicles will last longer and maintain their value.
  • Lower maintenance costs. Routine maintenance reduces costs in the long run.
  • Boost resale value. More efficient vehicles last longer and have a higher resale value.
  • Reduce insurance rates. Taking better care of your vehicles and reducing the risk of damage can help you get better insurance rates for all of the vehicles in your fleet.
  • Increase efficiency. An optimized fleet can help your business be more productive, improving business relationships and increasing revenue.
  • Improve customer service. GPS tracking can improve communication with drivers, clients, distributors and suppliers.
  • Store vehicles safely. Keep your vehicles in a garage or behind a locked lot.

How to manage drivers using telematics

Telematics devices allow you to track driving habits and vehicle activity. They’re ideal for fleet management because they help you manage risk, increase productivity and get better insurance rates.

There are multiple installation methods, though all of them transmit data to your office using a cellular network.

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Benefits of telematics for fleets

Telematics devices provide a number of benefits:

  • Speed. Track your driver’s speed with GPS data.
  • Time. See when your drivers are on and off the road to optimize safety and productivity.
  • Route. Track driving routes to ensure that your drivers are traveling efficiently.
  • Driving habits. Monitor turning, acceleration and braking habits to reduce the need for vehicle maintenance.
  • Vehicle compliance. Ensure that all vehicles in your fleet are compliant with emissions and inspections.
  • Productivity. Dispatch the nearest driver, schedule roadside assistance and set territories.
  • Fuel consumption. Monitor fuel consumption to reduce gas and optimize your fleet.
  • Diagnostics. Schedule maintenance based on real-time data.
  • Insurance. Tracking habits and activity helps you manage risk and prevent damage to your vehicles. In return, many providers will offer car insurance discounts. And if you have a specific type of vehicle fleet, you may opt for insurance specific to your industry, like fleet insurance for vans or fleet truck insurance.

What kind of commercial telematics software should I consider?

While telematics devices and software might be available through your insurer, there are many other providers that offer this service:

  • Geotab. A full-service telematics and fleet management solution that allows you to track and communicate with drivers.
  • Aeris. Customizable and scalable telematics for a range of vehicles.
  • FleetComplete. GPS tracking and telematics that integrates with smartphones for easier fleet management.
  • cTrack. Comprehensive vehicle tracking with fleet management capabilities to help you cut fuel and maintenance costs.
  • Element fleet management. Fleet telematics and consultants that can help you identify and act on improvements and cost-saving opportunities.
  • Key telematics. A feature-rich software platform that integrates into a handful of different GPS tracking devices.
  • Route4Me. As the first and only HIPAA-compliant telematics provider, it uses encryption to keep your data safe.

Are telematics secure?

Most telematics providers take extensive measures to keep your data safe, though the level of security varies depending on the company. If you’re worried about data security, ask providers for more details or consider companies that take extra steps to be secure and compliant like Route4Me.

Save on fleet insurance

To save on insurance for your fleet, look for discounts for safe driving, paying your premiums upfront and investing in telematics that tracks the driving habit of your drivers.

Compare cheap fleet insurance

Name Product AM Best financial rating Available states
Not rated
All 50 states
Compare multiple quotes for business auto insurance to find the cheapest rates from this online commercial insurance broker.
Insurance321 commercial car insurance
Not rated
All 50 states
Connect with a commercial agent who understands your industry and receive a personalized quote in as little as four minutes.
Liberty Mutual commercial car insurance
All 50 states
Take advantage of telematics to monitor and improve employees' driving and save on insurance premiums.
Allstate commercial car insurance
All 50 states
Customized, industry-specific polices like leased car coverage plus quick claims filing.

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Bottom line

Reduce the time and money spent on managing your fleet. Using fleet optimization strategies like route planning, telematics and the right commercial car insurance policy can help you reduce operating costs.

Frequently asked questions

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