Daimler Truck Financial Services and Geico have launched a new insurance program that utilizes data to potentially reduce commercial vehicle insurance premiums by up to 10% for customers.
The Connected Insurance initiative aims to assist owner-operators and small fleets of Freightliner and Western Star by lowering insurance costs and encouraging safer driving practices, as stated in a recent announcement.
This program builds on Geico’s existing DriveEasy Pro, which offers additional savings possibilities and benefits for clients monitoring fleet performance and real-time tracking through Geico’s OBD plug-in, along with added safety via road-facing dashcams.
With the Connected Insurance program, Freightliner and Western Star clients can voluntarily share their Detroit Connect telematics data without needing to install extra diagnostic equipment or dashcam hardware, thus reaping the benefits of the DriveEasy Pro program.
This approach facilitates more precise underwriting and simplifies the claims process, according to company representatives.
Designed with input from owner-operators and industry experts, Geico’s DriveEasy Pro program merges real-world telematics data with advanced analytics to deliver competitive insurance rates supported by Berkshire Hathaway.
The introduction of Connected Insurance is particularly timely, given that, according to the American Transportation Research Institute, insurance costs are the fourth most significant challenge for trucking carriers, especially smaller businesses.
Connected Insurance directly addresses this issue by making quality coverage both more accessible and affordable, as highlighted in the announcement.
Geico’s Expanding Trucking Insurance Sector
A notable factor behind rising insurance costs is the diminishing number of companies willing to insure trucking businesses.
Geico has been actively broadening its truck insurance offerings over the past few years and made its first appearance at the Mid-America Trucking Show earlier this year to present products tailored for owner-operators, private carriers, and leased operators.
The company has previously announced significant investments in building a claims infrastructure tailored for the trucking sector to expedite the process of getting customers back on the road, including recruiting top industry talent and developing specialized training programs for claims adjusters.
Additional Insights on Connected Insurance
Daimler Truck Financial Services noted that this program aligns with its broader commitment to utilizing Detroit Connect telematics data to enhance customer experience, exploring further applications of connected vehicle data across its financial services range.
“This strategic partnership with Geico establishes a smart, data-driven insurance solution that helps our clients minimize one of their largest operational costs,” stated Kevin Bangston, president and CEO of Daimler Truck Financial Services North America, in a news release.
Chris Sions, Geico’s head of partnerships, noted, “Real-time data from Daimler Truck’s telematics platform enables us to better evaluate risk, incentivize safe driving, and provide significant savings to our clients.”
“To expand our commercial trucking insurance nationally, solid partnerships like the one with Daimler Truck Financial Services are essential,” he added.
The program is facilitated through DTFS’s subsidiary, Daimler Truck Insurance Agency. This isn’t Daimler Truck Financial Services’ initial venture into employing telematics for insurance savings; in 2022, the company announced a collaboration with High Definition Vehicle Insurance (HDVI) to introduce Dynamic Insurance.
Explore Further: Insurtech Enhances Fleet Insurance Savings and Safety
