Price and savings are the number-one factor in fleet managers’ decision to incorporate usage-based insurance (UBI) into their small commercial fleet, according to a study released today by LexisNexis Risk Solutions. Despite significantly less insurer marketing for UBI in this space, small business awareness of UBI is relatively strong at 25 percent.
The study also explored the effect of value-added services, mainly fleet management capabilities, on a UBI program offering. Contrary to common beliefs, results show that small fleets want UBI, with or without fleet management services. They find the discount and simplicity of UBI appealing.
“Two-thirds of small fleet managers shop for insurance every two years or more,” said Ernie Feirer, Vice President and General Manager, Commercial Insurance, LexisNexis. “These fleet managers are looking for ways to save money and our study shows 27 percent of them would sign up for a UBI program. This leaves a lot of room for growth and a huge opportunity for carriers offering UBI.”
Specific findings showcasing how commercial fleet managers are adopting UBI to save money include:
- Saving money on commercial auto insurance is extremely important to three-fourths of fleet manager.
- Seventy-two percent of fleet managers are more likely to enroll in usage-based insurance under a three month trial.
Small fleet managers also value services such as stolen vehicle tracking, fuel consumption/efficiency updates and automatic emergency crash response, according to additional findings from the survey. Commercial fleet managers are also receptive to mobile UBI technology and 73 percent of small fleet drivers have smartphones.
