Using Telematics to Tackle Rising Insurance Costs

For owner-operators and small fleets, rising insurance costs represent one of the greatest operational hurdles. According to the American Transportation Research Institute, insurance premiums rank as the fourth-highest challenge facing carriers today. Therefore, Daimler Truck Financial Services USA LLC (DTFS) and GEICO recently announced a strategic partnership to directly address this financial pressure. They launched Connected Insurance, a new data-driven program rewarding safe driving with meaningful premium savings for Freightliner and Western Star customers. The press release detailing this partnership can be viewed here.

Streamlining Safety and Securing Savings

This Connected Insurance program enhances GEICO’s existing DriveEasy Pro offering. Crucially, it leverages real-time Detroit Connect telematics data to accurately assess risk and reward positive driving habits. Customers can voluntarily share their telematics data. They gain the benefit of potentially lower premiums without the need to install extra dashcam hardware or on-board diagnostic devices. This approach streamlines the process. Kevin Bangston, President and CEO of DTFS North America, stated that this data-driven option helps customers reduce one of their largest operational expenses. Specifically, eligible owner-operators and small fleets may save up to ten percent on their commercial vehicle insurance premiums.

Benefits Beyond the Discount for Safety

The integration of telematics data achieves two primary goals. First, it enables a more accurate, data-backed underwriting process. Chris Sions, GEICO’s head of partnerships, confirmed that using Daimler Truck’s telematics platform allows them to better assess risk and deliver savings. Second, the program is designed to enhance the claims experience. It combines nearly 90 years of GEICO’s auto insurance expertise with specialized commercial trucking knowledge. This collaboration aims to provide efficient claims services specifically tailored for commercial vehicles. Ultimately, this commitment shows DTFS’s continued focus on using connected vehicle data to improve the entire truck ownership experience. Safe driving not only reduces the likelihood of accidents, but now directly impacts the fleet’s bottom line, making safety a verifiable financial asset.

Also read: Insider Tips from a Truck Insurance Broker