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TELEMATICS: Carrot or stick?

Date: 03 December 2013   |   Author: Jack Carfrae

 

It's a different and arguably easier sell for company car drivers, though, as they may well be able to gain directly from some of the improvements that a telematics system brings as well as from the indirect benefits that are on offer.

Smith continues: "For company car drivers it is all about highlighting the benefits to them and the business. 'Pay how you drive' insurance could automatically deliver lower premiums for those company drivers who drive sensibly, and 'pay as you drive' means fleets only pay for the mileage their drivers undertake, which could be relevant for lower-mileage users.

"Simply looking at changing the focus of their company car driver insurance from car-based to driver-based will not only be an effective way for fleets to reduce costs, but improve road safety, helping employees become more conscientious drivers and helping employers meet duty of care requirements."

If you're still worried about a staff backlash then it's worth going the extra mile before the system comes into force. Being as clear as you can as early as you can with employees is always the best way forward, and having things in writing is worthwhile too, but Margerison reckons it can be within a business's interests to go further.

"Identify champions among your workforce to accentuate the benefits of the technology to colleagues and, if necessary, involve relevant union representation in the exposition process to ensure staff know their interests are being kept firmly in mind."

He continues: "Drivers must be given a clear understanding of the potential impact telematics can have on a company's bottom line. If a business is able to save 20% on fuel costs, for example, this is pure bottom-line profit - money which may otherwise need to be recovered through a dramatic increase in sales.

"Much of the cost in fleet businesses comes from fuel and people, so if a business is able to save in one area it could mean more will be left in the pot for the others. Drivers will be more inclined to acknowledge the need for telematics if the savings achieved help to safeguard their job or salary prospects." 



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