Nearly 40% of UK businesses choose telematics for their fleet insurance

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It seems the world of business has been quick to take up telematics car insurance, according to a recent industry survey.

RAC Business conducted a study to try and determine what percentage of UK firms are adopting telematics car insurance product with direct regards to their fleet vehicles; and the subsequent results show that London-based companies are generally quicker on the up-take.

Whilst on the whole some 38% of UK businesses are said to be jumping on the telematics insurance bandwagon, an above national average 45% of firms located in and around the capital have made the vehicle policy switch in recent times. After London, Scotland and the North East of England are running out such dedicated policies (44%), with the North West of England and Wales (acknowledging 30% apiece) and Northern Ireland (27%) making up the rear-guard.

fleet of cars

The proof appears to be very much in the pudding when it comes to those companies making the change from more conventional motor insurance means to the telematics-based alternative, with 68% of those businesses participating in the RAC’s poll (sources from a spectrum of sectors) admitting noticeable reductions in fleet fuel bills and an encouraging 55% observing less wear and tear on the vehicles in constant company use. In addition to these positive spins, a further 48% of commercial respondents had witnessed a reduction in vehicle downtime.

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Meanwhile RAC Business’ survey discovered that 43% of companies using telematics insurance policies believe that it supported their existing Duty of Care policies, while 58% were more than impressed by incidents of speeding and associated fines being minimised; what’s more, 11% of new fleet telematics policyholders confirmed that the trend for otherwise spiralling insurance premiums had been systematically reversed thanks to installing telematics.

The RAC Business research also extended its reach to address the size of businesses which are making serious in-roads into the fleet telematics market with, perhaps unsurprisingly, larger concerns (in terms of employee counts) being responsible for greater interest in telematics insurance policies.

Evident by confirmation that 55% of companies employing up to 500 members of staff represent the biggest up-take, while 25% of firms with 50 (or less) employees report signing up to such packages. By far the fewest demographic in this instance though, are those businesses which support 10 or fewer workers, with just 11% which fall into this category opting for telematics plans.

Looking at individual sectors, and companies operating within the manufacturing industries tend to account for the largest percentage on telematics converts (as per RAC Business findings that is), noting 49%, with the transport and distribution sector chalking up 45% and the automotive and FMCG both a fraction behind registering some 44%.

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At the other end of the scale – and therein those industries found to be less likely to adopt telematics insurance for their fleet vehicles – and communication services, retail and construction comprise the seeming fence-sitters here and now, notching up 31%, 36% and 38% respectively.

Still, previous barriers which alluded to ‘Big Brother’ hang-up displayed by some would-be telematics converts have been removed, with the ‘tracking’ element which many had misgivings about being replaced by a more optimistic understanding of the way in which, conversely, being able to readily monitor a driver and vehicle’s perceived health ranks higher.

Speaking on this very subject, an RAC Business spokesperson said; “The idea that businesses are using telematics just to track their staff is really quite outdated now, they are much more interested in information about how the vehicle is performing and getting alerts about parts that need replacing, or vehicles that need servicing.” They also went on to add how; “Telematics is a key aspect of Duty of Care policies, helping to promote safer driving so there are fewer speeding fines or accidents, which all contributes to less downtime and therefore a much more efficient business.”

Learn more about telematics insurance:

Telematics insurance – the advantages v disadvantages

How telematics could change the health insurance industry

Everything you need to know about black box insurance

The complete guide to saving money with black box car insurance

How black box car insurance works