Benefits of telematics for commercial clients: A guide for insurance agents

For many businesses, vehicles are central to daily operations—and a significant source of risk. As their trusted advisor, you can help them see how technology like telematics turns that risk into an opportunity to improve safety, cut costs, and run more efficiently. 

This guide gives you what you need to start those conversations. You’ll find current data on the risks businesses with vehicles face, a clear explanation of how telematics works, and a rundown of the benefits you can share with clients of any size. 

The risk businesses with vehicles face today

Driving remains one of the most dangerous job duties in the United States. According to the Bureau of Labor Statistics, there were 5,070 fatal work injuries recorded in 2024, and roadway incidents alone accounted for 1,146 of those occupational deaths.¹ 

The broader traffic picture shows some improvement. The National Highway Traffic Safety Administration (NHTSA) reported 39,254 traffic fatalities in 2024 and estimates roughly 36,640 in 2025—a 6.7% decrease from the prior year. The 2025 fatality rate fell to 1.10 per 100 million vehicle miles traveled, the second-lowest rate recorded.² 

Even so, distracted driving continues to take a serious toll. In 2024, 3,208 people were killed and 315,167 were injured in crashes involving distracted drivers.³ For a business, a single one of these incidents can mean injured employees, damaged vehicles, downtime, and a claim. 

Litigation costs are climbing for commercial auto

The financial exposure goes well beyond repair bills. A recent analysis by the Insurance Information Institute (Triple-I) and the Casualty Actuarial Society (CAS) found that litigation trends increased commercial auto liability losses and defense costs by $52.0 billion to $70.8 billion over the past decade—representing 22.6% to 30.8% of booked losses.⁴ 

Just as important is why costs are rising. Across liability lines, the analysis points to claim severity, not claim frequency, as the main driver. The number of claims has declined, but the average cost per claim has increased faster than economic inflation.⁴ For your clients, that means a single serious accident can carry a much heavier price tag than it would have a few years ago. 

In this environment, businesses with vehicles are looking for practical ways to reduce exposure. Telematics systems—and the data they deliver—can be a strong part of the answer. 

How telematics can help protect workers and support businesses

Telematics is a broad term for technology that organizations use to gather data on drivers, individual vehicles, or an entire fleet. Businesses that use telematics can track a vehicle’s location, driver behavior, vehicle diagnostics, and similar operating metrics.⁵ 

Any business that manages vehicles — whether it’s a senior living community, manufacturer, or construction firm — could benefit by enhanced efficiency and safety. Telematics systems can be installed in nearly any vehicle and stay affordable even for small organizations. 

These systems share data between each vehicle and a central location. Typically, data is gathered using telematics devices such as a dongle, mobile application, or dashcam. The devices collect insights, store the data briefly, then transmit it to a central hub where a dashboard displays it in a format businesses can act on right away. 

Telematics devices can gather a range of useful information: 

• The speed of a vehicle 

• The location of a vehicle 

• The movement patterns of a vehicle 

• Instances of aggressive acceleration, hard braking, and erratic cornering 

• Distracted driving incidents (e.g., smartphone usage) 

• Diagnostics data related to fuel efficiency and vehicle performance 

Privacy can be a concern for some organizations, but telematics systems address that. Data transmission is typically encrypted to keep communication secure between the vehicle and the server. Providers also follow data protection regulations and put measures in place to safeguard sensitive information.⁵ 

Benefits of telematics for commercial clients

Here are the key ways telematics can support operations. 

Improved safety

According to the National Highway Traffic Safety Administration, speeding and aggressive driving are a factors in 29% of all traffic fatalities. Telematics helps organizations protect employees by monitoring driver behavior and vehicle performance. It can detect unsafe practices — like excessive speeds or hard braking — and allow fleet managers to personalize driver coaching or send in-cab alerts that correct dangerous behavior in real time. Over time, this can lead to fewer accidents and fewer claims. 

Increased productivity and customer service

When a fleet manager knows the exact location and status of every vehicle, they can make real-time decisions. They can reroute drivers around heavy traffic or send an extra vehicle to a job. They can also support customer service by providing customers accurate times of arrival or dispatch vehicles that are closest to a customer’s location. This matters most for smaller fleets, where one vehicle—and one driver’s productivity—can represent a large share of the business.⁶ 

Improved vehicle maintenance

Telematics can flag mechanical issues before they become major problems. A diagnostic device might catch an engine fault code early, helping the business avoid downtime and lost revenue. Many systems also schedule and track service based on mileage. As part of a preventive maintenance program, telematics keeps vehicles in better shape—and better-maintained vehicles are less likely to break down or create unsafe situations on the road. 

Improved fuel efficiency

Fuel is a major expense, and telematics helps businesses run leaner. It supports route optimization, reduces engine idling, and flags excessive speeds. 

Fueleconomy.gov notes that aggressive driving can lower gas mileage by 15% to 30% at highway speeds and 10% to 40% in stop-and-go traffic. For a pickup driving 15,000 miles a year, a 10% improvement in fuel economy at $3.60 a gallon covers about 90% of the annual telematics expense.⁷ 

Quicker response to accidents

Because telematics devices provide location data, fleet managers can send emergency help to a driver fast. Camera footage can also help re-create an accident, supporting quicker, more accurate claim resolution. 

Reduced administrative costs

Some telematics solutions digitize expense reports, driver performance, maintenance records, and fuel expenses. That promotes accurate, easy-to-track recordkeeping and saves time and money. This is especially valuable for smaller fleets that lack the dedicated resources of larger ones and benefit from a less manual approach. 

Key takeaways for your client conversations

• Driving remains one of the most dangerous job duties, with 1,146 occupational roadway deaths in 2024.¹ 

• Distracted driving killed 3,208 people and injured 315,167 in 2024.³ 

• Litigation trends pushed commercial auto liability and defense costs up by $52 billion to $70.8 billion over the past decade.⁴ 

• Rising claim severity—not frequency—is the main cost driver, so one bad accident carries more weight.⁴ 

• Telematics supports safety, productivity, maintenance, fuel savings, faster accident response, lower admin costs, and better customer communication.⁵ 

• Even small fleets can afford telematics, and fuel savings alone can offset much of the cost.⁵ 

Telematics resources to share with customers

You can share our commercial lines Safe Driver webpage with customers to help them access our vehicle safety resources and training, including these telematics resources: 

• Article: Why Telematics 

• Telematics Selection Guide (PDF) 

• Telematics Implementation and Coaching Guide (PDF) 

• Telematics and Smartphone Apps (PDF) 

• Everything You Need to Know About Dashcams 

• Distracted Driving Prevention Technology 

Your commercial clients are managing real risk every time their vehicles hit the road—and the cost of a serious accident keeps climbing. Telematics gives them a practical, affordable way to improve safety, control expenses, and operate more efficiently, no matter the size of their fleet.