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Friday Short Haul - CTA files lawsuit against California, Highway Hero nominations sought, video of "Move Over" crash 11/15/2019 Tesla announces new electric Semi model 11/13/2019 Not everyone happy with potential FMCSA clearinghouse delay 11/11/2019 Friday Short Haul - AI taking driving jobs, CRV scam, Truckers protest AB-5, ELDs quit working 11/8/2019 Investigators cracking down on truck accident fraudulent lawsuits 11/6/2019 So you want to start your own trucking company? 11/4/2019 Friday Short Haul - FMCSA emergency exemptions, snow plows, FedEx employee bribery charges 11/1/2019 Human smuggling via big rigs on the increase 10/30/2019 Carriers, drivers look at ways to deal with California's AB-5 10/28/2019 Friday Short Haul - Millennials and trucking, Truckers Christmas Group, Navistar settlement 10/25/2019 Too many drivers still don't know to "Move Over" 10/23/2019 Are trucker strikes a thing of the past? 10/21/2019 Friday Short Haul - Passenger car drivers, spotted lanternfly, women drivers 10/18/2019 OOIDA makes final push for better HOS rules 10/16/2019 Car-truck crash fatalities continue to increase 10/14/2019 Friday Short Haul - Amazon's fleet of day cabs, legislator's disclosure, WTA petition 10/11/2019 ATA chief takes on truck-accident lawyers 10/9/2019 Lonely on the road? Get a furry friend 10/7/2019 Friday Short Haul - Lab-grown meat, fraudulent freight brokering, FMCSA HOS committee, FMCSA Clearinghouse 10/4/2019 UPS takes giant leap in its drone delivery program 10/2/2019 Female drivers are safer bet for trucking companies 9/30/2019 Friday Short Haul - Embark gets financing, FMCSA announces safety grants, Covenant exits Mexico routes, and trucking statistics 9/27/2019 Emissions standards battle heats up between the EPA and California 9/25/2019 Smog checks in the future for California truck drivers 9/23/2019 Friday Short Haul - Volvo Dynamic Steering, Meals for 18 Wheels, speeding crackdown, OOIDA opposes legislation 9/20/2019 Telematics could be insurance-premium-saving boon for fleets 9/18/2019 54 percent of survey respondents still not impressed with telematics technology 9/16/2019 Friday Short Haul - Walmart video, it's churn, not shortage, California's independent contractor bill, hemp drivers plea 9/13/2019 TCA honors three Highway Angels 9/11/2019 Now they're talking about "smart" trailers 9/9/2019 Friday Short Haul - Detention-time comments, truck orders decline, diesel fuel shortage 9/6/2019 Berkeley study says reducing independent truckers can alleviate climate change 9/4/2019 Clearing up concerns about the drug and alcohol clearinghouse 9/2/2019 Friday Short Haul - Hurricane Dorian, Speed limiter bill, Thank a Driver campaign 8/30/2019 Georgia jury awards $280 million for truck-driver-caused multi-fatality 8/28/2019 Friday Short Haul - New eCascadias, Top cities for truck driver jobs, Push against driverless trucks 8/23/2019 Decision on California drivers' employee/contractor status coming down to the wire 8/21/2019 UPS jumps on autonomous bandwagon with TuSimple investment 8/19/2019 FMCSA publishes proposed HOS rule changes 8/16/2019 Fleets, drivers coming to like automated manual transmissions 8/14/2019 CVSA asks for new truck crash study 8/12/2019 Friday Short Haul - HOS revisions delayed, AEB mandate proposed, Koch sued for sex discrimination 8/9/2019 Kodiak Robotics takes lead in autonomous truck industry race 8/7/2019 New York City combats rash of cyclist/truck clashes 8/5/2019 Friday Short Haul - CRST wins lawsuit, OOIDA opposes insurance hike, UPSNav 8/2/2019 Mechanics shortage equals driver shortage in intensity 7/31/2019 DOT announces almost 1$ billion in grants to fix infrastructure 7/29/2019 Friday Short Haul - DOL on sleeper pay, UPS drone delivery, Geowiz ELDs 7/26/2019 FMCSA takes a look at assault, harassment of female and minority drivers 7/24/2019 It's hot out there, what's a trucker to do? Can't idle. 7/22/2019 Friday Short Haul - Utah truck rollovers, aging truckers, lifetime CDL bans 7/19/2019 Truck-mounted LED billboards coming under fire 7/17/2019 Trucker 'drones on' with unique approach to teaching driving skills 7/15/2019 Friday Short Haul - Rhode Island tolls, human smuggling, contractor vs employee status 7/12/2019 ELD mandate deadline looming, many still not compliant 7/10/2019 New "boot" device being deployed to threaten Walmart overnighters 7/8/2019 Friday Short Haul - Prime Inc vs Amazon, mother fights HOS changes, truck drivers appreciation week 7/5/2019 Proper way to fly the American flag on your truck this Fourth of July 7/3/2019 Roundabouts are becoming popular; but are they best for trucks? 7/1/2019 Friday Short Haul - Skills test proposal, driver shortage, hemp sentencing, driverless trucks 6/28/2019 Experts warn of active wildland fire season 6/26/2019 More states signing on to enlist truckers against human trafficking 6/24/2019 Friday Short Haul - Shippers of Choice, insurance rates, wheel spikes, WIT award 6/21/2019 Freight numbers not holding up to 2018's highs 6/19/2019 Truck safety group urges purges of drug abuse drivers 6/17/2019 Friday Short Haul - Self-driving certificate, truck platooning, trade war stacking up cargo 6/14/2019 HOS waiver coming soon for fireworks haulers 6/12/2019 FMCSA takes a further look at detention time 6/10/2019 Friday Short Haul - Autonomous delivery, HOS rules changes, CDL retest 6/7/2019 Roadcheck 2019 in effect this week 6/5/2019 Hemp arrest prompts USDA memo 6/3/2019 Friday Short Haul - Waymo big rigs, Move over sting, Under-21 comments 5/31/2019 Severe weather prompts renewed emergency declaration 5/29/2019 Memorial Day holiday is prime time for cargo thefts 5/25/2019 Friday Short Haul - Hauling hemp, road rage fatality, new rules for autonomous vehicles 5/24/2019 Autonomous trucks on USPS test run 5/22/2019 Future era of cab-less trucks will be the end of HOS rules 5/20/2019 Friday Short Haul - FMCSA under-21 comments, Tesla autonomous car crash, 24,000 drivers sign contract with YRC 5/17/2019 Under-21 interstate drivers getting serious look by FMCSA 5/15/2019 Trucker Buddy program matches drivers with a classroom; everyone wins 5/13/2019 Friday Short Haul - Driver awarded $80 million, ODFL driver wins, loading dock black hole 5/10/2019 Storm breaks out from Rockies, slams into Midwest, South 5/8/2019 Capacity issues have shippers looking at private fleets 5/6/2019 Friday Short Haul - HOS rules, dark skies, Falcon drivers 5/3/2019 'Bug' permits now required for four eastern states 5/1/2019 Simulator use is catching on for schools, carriers 4/29/2019 Friday Short Haul - Thinking electric, Penske opens charging station, border crossing crisis, railroads taking trucking business 4/26/2019 ELDs might not be the panacea that was hoped for 4/24/2019 Truck drivers may soon see "phantoms" driving yard trucks 4/22/2019 Friday Short Haul - Nikola big rigs, WIT welcomes Peterbilt, Oregon crashes, Border crossings 4/19/2019 Carriers claim financial benefit of putting up drivers in hotels 4/17/2019 Uber's IPO application reveals interesting data about its freight brokerage business 4/15/2019 Friday Short Haul - CDL examiner arrested, tolls proposed for trucks, marijuana use on the rise 4/12/2019 Smart Load Board will get carriers the loads they need 4/10/2019 Huge lines and long wait times greet carriers at Mexico border 4/8/2019 Friday Short Haul - Marijuana, ATA campaign, personal conveyance rules 4/5/2019 Over-the-air downloads revolutionize parameter updates 4/3/2019 Don't get scammed by skimmers 4/1/2019 Friday Short Haul -- New Cascadias honored, motorist survey, U.S, Xpress awarded, rest stop parking 3/29/2019 Legislators address underride collisions, propose more underguards for trucks, trailers 3/27/2019 Motorists soon may encounter a different kind of truck convoy 3/25/2019 Friday Short Haul -- Women in Trucking, irate motorist, FMCSA eases HOS, Safe-Cap 3/22/2019 Recent survey shows cost of roadside repairs is rising 3/20/2019 FMCSA announces drug and alcohol clearinghouse website 3/18/2019 Friday Short Haul - Swift settlement, driver shortage myth, TCA Best Fleet award 3/15/2019 The hidden danger of looking but not seeing 3/13/2019 Accident scammers target trucks for financial payout 3/11/2019 3/9/2019 3/9/2019 Friday Short Haul - Snow on the roof, bypassing toll road, Waze under fire 3/8/2019 Retailers blame driver shortage for price increases 3/6/2019 Drivers' smartphones may be clue to road roughness 3/4/2019 Friday Short Haul -- Freight rates, HOS changes, tonnage reports 3/1/2019 New tax changes hit drivers hard 2/27/2019 FMCSA to implement under-21 interstate driver program for former military 2/25/2019 Friday Short Haul -- Connecticut tolls proposed, hydrogen fuel-cell trucks, cell phone use 2/22/2019 Congress committee looks at state of America's highways 2/20/2019 Number of cargo thefts is down; but dollar value about the same 2/18/2019 Friday Short Haul -- Crossing the border, CA sues FMCSA, Lobbying against larger trucks 2/15/2019 Detention - A problem still in search of a solution 2/13/2019 February Highway Angels honorees named 2/11/2019 Friday Short Haul -- C.R. England announces pay raises, eCommerce impact on trucking, TCA announces best fleets 2/8/2019 Is a guaranteed minimum pay the solution to the driver shortage? 2/6/2019 Long CDL testing wait times cost economy billions of dollars; not helping driver shortage 2/4/2019 Friday Short Haul -- Walmart hiring, Uber Freight App, Speed-limiter Law, America's Road Team 2/1/2019 Cranking -- The Good, The Bad, and the Ugly 1/30/2019 California survives challenge to its low-carbon fuel standards 1/28/2019 Friday Short Haul - Highway robbery ... autonomous trucks ... new trailers 1/25/2019 LithiumHub enters jump-starter market with Jumpbooster JP30 1/23/2019 2019 Looks Good For The Transportation Industry 1/21/2019 Raymond Burt named TMC Trainer of the Month for February 2018 3/28/2018 TMC Transportation Announces Recipient of Prestigious Wheel Master Award 3/7/2018 TMC Transportation Named The Home Depot’s Flatbed Carrier of the Year For Fourth Straight Year 2/28/2018 Pay Raises & New Peterbilts for PAM Drivers 2/26/2018 New DOT Drug Testing Rules Effective Jan 1, 2018 1/11/2018 Amtrak Derailment: Trucks Haul 270,000 Pound Locomotive Engine During Cleanup 12/21/2017 Pepsi Places Largest Order Yet For Tesla Electric Trucks 12/12/2017 Kavin Hallett named Trainer of the Month for October 2017 12/8/2017 Over 100,000 Truck Drivers Likely Have Undiagnosed Sleep Apnea And More Testing Is On The Way 8/10/2017 Drivers Share Their Best Tips, Tricks, And Secrets For Life On The Road 7/18/2017 Drivers Are Losing Money By Taking The Wrong Approach 7/13/2017 Truckers and Guns: What Is and Is Not Legal 7/6/2017 Preparing To Go Solo For The First Time? Experienced Drivers Share Their Best Advice 6/29/2017 The Truck Stop Survival Guide: Advice From Experienced Drivers 6/15/2017 The Worst Cities For Traffic In The U.S. For 2017 6/8/2017 We Ask Drivers How They Would Make The Logbook Rules Better 5/30/2017 Self Driving Trucks Are Not Coming Anytime Soon 5/25/2017 11/30/-0001

Telematics could be insurance-premium-saving boon for fleets

Dave Wickenhauser on Wed, September 18, 2019

Last Updated: Tue, September 17, 2019

Continuing Trucking Truth's unofficial series on telematics and other advanced technologies in the trucking industry we take a look at how the insurance industry is reacting to this new dynamic, and how that interest by insurers benefits carriers.

It's no secret that insurance premiums that carriers pay to cover their fleets have been on the rise for the past few years.

Contributing to this increased cost for insurance are the enormous payouts that juries are awarding for truck-related accidents. And increased accident frequency that is exacerbated by the growing number of gadgets in a cab to distract the driver, the deterioration of America's highways, and the sheer number of vehicles that are on the highways these days are factors as well.

Insurers are also finding themselves up against plaintiffs in court who are financed by litigation financers that give plaintiffs almost unlimited funds to pursue their claims.

“Plaintiff attorneys are now engaging in litigation financing where an unrelated third party provides financing to the plaintiff in litigation in return for a portion of any financial recovery from the lawsuit,” Randy Ramczyk, director of underwriting for transportation at Sentry Insurance told Transport Topics recently.

Normally, primary liability policies cover up to around $5 million, but that is a drop in the bucket compared to the jury verdicts that can reach up to the half a billion dollar range.

This unfavorable climate for insurers has resulted in rate increases, sometimes in the double digits, but often doubling the previous rates, as well as increasing exits by insurers from the market who provide coverage in the "excess" category; that is, coverage beyond the normal primary liability insurance.

Because smaller carriers often cannot reap the benefits of safety discounts, or because they have a loss history, when faced with increasing premium costs they simply choose to leave the industry.

Knowing this, and recognizing that the problem is only going to get worse, insurance providers are now working with trucking companies that incorporate telematics and other safety-enhancing technologies in order to help reduce the premium cost crunch.

Insurers are taking a three-pronged approach to alleviating the cost of premiums, and the likelihood of accidents occurring in the first place:

Giving discounts to carriers that employ telematics and other technology

Not all insurers will directly grant discounts to carriers that install safety technology into their vehicles. But data is available that fleets that do employ telematics and technologies like collision mitigation and avoidance systems, on-board cameras, etc., experience an accident-reduction bonus; a reduction that does result in reduced premiums.

Insurers are always very happy when losses decline, especially in the area of catastrophic loss.

“It is difficult to measure the exact impact of accidents that have either not happened at all or have been substantially mitigated by these technologies, especially for fleets that are largely self-insured,” Todd Reiser, vice president of the transportation practice at insurance broker Lockton Cos, told Transport Topics.

On the negative side, and as a corollary to offering discounts for technology hardware, some insurers are reducing their own risks by establishing a prerequisite that fleets have safety-enhancing technology installed.

Also, fleet owners that have found it difficult to comply with, and be ready for, the December deadline for the full electronic logging device mandate will find themselves having to deal with more than just the Federal government.

Insurers will be reluctant to cover carriers who fail to install ELDs in their trucks. “It’s doubtful that an insurer would agree to write that risk knowing a motor carrier was intentionally violating the mandate," Craig Dancer, of insurance broker Marsh USA Inc., told Transport Topics.

Subsidizing fleet-owners' costs for installing safety-enhancing technology

Rather than giving discounts, some insurers have seen the benefit of taking on the cost for a fleet to convert to telematics and other technologies.

“The insurer is betting that their investment in safety technology will be paid back over time based on their insured’s improved loss experience," Dancer told Transport Topics.

“If you don’t have claims, your insurance costs come down and you avoid driver injuries,” Dancer said.

Porting telematic data directly to the insurer

A few insurers are giving discounts to carriers that share their telematics data with the insurer.

Accidents aside, insurers are wanting to know that drivers are not putting their trucking companies, and their insurers, at risk for potential losses by accident-prone behavior like having a lot of critical events such as hard braking.

These critical events are recorded by modern technology, and these events can measure things like unsafe speed, hard-braking, frequent lane departures, etc., that could indicate an unsafe driver.

“The key to implementing any technology is the follow-on coaching with a driver when critical events occur,” Dancer told Transport Topics. “Between ELDs, vehicle telematics and camera systems, motor carriers have tremendous amounts of data to identify at-risk behaviors allowing the motor carrier to act before an accident.”

A Teletrac Navman blog tells of a telematics-fueled move to what's called usage-based insurance and pay-as-you-drive programs. Basically, if carriers track driving habits and then share that data with insurers the insurers will use that data to link their premium costs to the fleet's safety performance behavior.

With this data, insurance companies will also be able to reduce their payouts for false claims.

The National Association of Insurance Commissioners says that usage-based-insurance can lower premiums for fleets that incorporate telematics systems. UBI tracks mileage and behaviors for setting premium costs, rather than using actuarial studies reflecting factors such as driving record, credit-based insurance score, personal characteristics (age, gender, and marital status), vehicle type, garage location, vehicle use, previous claims, liability limits, and deductibles.

Rather than pitting a fleet's premium cost against a universal computation based on the performance of other carriers, a fleet owner can reduce premiums by demonstrating a continuing, real-time accident-reducing safety record.

All this is possible when the carrier employs telematics that it can use to report data back to the insurance company.

As insurance premiums are directly tied to the loss risk, in order to reduce that cost it behooves carriers to do everything they can to prove to insurers their concern for safety.

Sources: Transport Topics, Teletrac Navman, NAIC

Tagged Under:

Distracted Driving Electronic Logbooks Truckers Technology Trucking Accidents

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