GPS Tracking Fuels Pay-as-You-Drive Fleet Insurance
We’ve discussed the VMT (vehicle miles traveled) tax under consideration in Oregon. It would help fund the state’s highway infrastructure by taxing drivers via a GPS fleet tracking-type system based on miles driven per vehicle. While no decision is expected anytime soon, fleet operators in the United Kingdom can already buy vehicle insurance based on VMT.
According to fleetnews.co.uk, a company named Coverbox is jumping into the pay-as-you-drive insurance market after its only competitor bowed out. Coverbox is promoting its plan with the added benefit of stolen-vehicle location, a feature available for many years with U.S. GPS fleet tracking companies.
As Coverbox’s website explains the system:
“Coverbox treats the insurance cost like a utility bill. At certain times of the year you will drive more miles than forecast and at other times less, just like you use more water in the summer than in the winter. You can control your costs once we install a free coverbox device in your car, still paying for your insurance monthly or annually.”
Fleet News says, “the system works using GPS technology to monitor distance covered and the time a vehicle is in use, and charges according to mileage covered in off-peak (daytime), peak (rush hours) or super-peak (11 p.m.-5 a.m.) periods.”
We haven’t been able to find any U.S. insurers who offer a similar insurance program. It will be interesting to see if Coverbox or an insurer like it crops up on this side of the Atlantic, and if current GPS fleet tracking technology can be integrated their product.
Would you consider a pay-as-you-drive insurance plan for your fleet? Let us know and we’ll give you a premium spot on this blog.
Tags: GPS fleet tracking, gps fleet tracking and highway taxes, GPS Fleet Tracking and Vehicle Theft, GPS Fleet Tracking Benefits, gps insurance
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