A driver who’s heavy on the brakes. Another who occasionally speeds, and yet another who drives carefully every time they’re behind the wheel. Fleet managers are familiar with these varying driving styles, but they may lack real-time tools to gauge driver behavior and ensure their organization’s vehicles are in safe hands.
Enter vehicle telematics. This powerful technology collects information about how drivers manage their vehicles, from excessive idling to hard acceleration, and delivers that data to the people who need it most: fleet managers.
Philadelphia Insurance Companies (PHLY) was an early adopter of fleet vehicle telematics, and we’ve protected more than three billion miles since PHLYTRAC’s launch in 2016. That milestone translates to better safety for PHLY’s policyholders, regardless of fleet size (whether four vehicles or 400, we’ve got you covered).
What Is Vehicle Telematics?
A vehicle telematic system collects in-vehicle data such as location, driver conduct, and other variables via a GPS receiver installed into a vehicle’s Onboard Diagnostics (OBD-II) port. As the device collects information on behaviors such as speeding, cornering, sudden acceleration, and hard braking, this vehicle telematics data is delivered via a website portal or smartphone app.
Personal auto insurance companies were among the first to use real-time driving data to dynamically calculate premiums, an early form of a usage-based insurance (UBI) model. As more agents and organizations discovered how fleet telematics could reduce loss and promote safe driving—and the technology became easier to install and use—the adoption of vehicle telematics has only grown.
According to the tech marketplace G2, 64% of fleet managers were using a GPS-based tracking system in 2024, an 8.5% increase over the previous year.
What Are the Benefits of a Vehicle Telematics System?
Telematics for fleet risk management is a robust innovation that enables fleet managers to mitigate risky driving behaviors before they become liabilities. Other potential benefits include:
Reduced fuel costs (as speeding and excessive idling are addressed)
Less wear and tear on company vehicles
When integrated into a commercial auto insurance policy, vehicle telematics can also improve an organization’s risk profile, potentially lowering premiums.
How Does PHLY Deploy Vehicle Telematics?
In 2016, PHLY launched one of the earliest non-UBI telematics programs in the commercial auto industry. PHLY’s initial pilot of 5,000 GPS devices (which eventually grew to 20,000 devices) showed clear benefits to insureds and their company vehicles: hard braking incidents were reduced by 98%, hard acceleration incidents by 97%, and speeding events by 69%.
Fueled by this early success, PHLY opened the PHLYTRAC vehicle telematics program to all commercial auto policyholders in 2018. To date, more than 75,000 of PHLY’s insured vehicles are protected with PHLYTRAC—and three billion insured miles into the program, PHLY has measured a 19% reduction in loss frequency for fleets fitted with PHLYTRAC versus those that aren’t.
“Our clients have the right, if not the responsibility, to assure that their employees are operating the vehicles in a safe way,” says one PHLY agent. “PHLYTRAC does just that. It shapes driving behaviors.”
How Does PHLYTRAC Work?
PHLYTRAC devices are quick and easy to install, offering insureds access to a suite of tools, including:
A website dashboard for visualization and filtering of telematics data
Online tools to calculate potential fuel and operational cost savings in tandem with incident reduction
Real-time maps of vehicle location, allowing fleet managers to see where their vehicles are at a glance
Customizable alerts for speeding, sudden acceleration, hard braking, excessive idle time, or check engine lights
Geofencing to alert managers if a vehicle moves outside of a predetermined area
Odometer tracking
Driver scorecards
Evolution of PHLYTRAC
Policyholders can also choose from add-ons at a reduced cost, such as dashboard cameras, driver identification software, and a new preventive maintenance program. With these growing enhancements, PHLYTRAC is not just about data, but about supporting the entire fleet’s operation.
Under the preventive maintenance program, the Partners Plus Auto Care Savings Plan, PHLYTRAC customers are eligible for savings on vehicle maintenance, repairs, and tires. This benefit provides these significant savings through a national network of leading repair and tire shops, including Firestone, Tires Plus, Hibdon, and Wheel Works.
PHLYTRAC's comprehensive suite of data-driven features empowers fleet managers to make informed decisions, optimize operations, and enhance efficiency. Its user-friendly interface allows for seamless monitoring, predictive maintenance, real-time tracking, and fleet management. By leveraging PHLYTRAC, fleet operators gain a competitive edge, maximizing productivity and minimizing expenses.
How Much Does PHLYTRAC Cost?
The short answer - nothing. PHLY covers the base cost of PHLYTRAC for all Commercial Auto customers who request it, regardless of fleet size.
Unlike with UBIs, data from PHLYTRAC isn’t used to calculate premiums nor change how our auto policies are rated. Instead, PHLYTRAC can enhance an organization’s overall risk profile, something taken under consideration when Underwriting prices a policy. And policyholders can cancel PHLYTRAC anytime.
The data is in. PHLYTRAC’s fleet telematics can help manage one of the biggest exposures in your organization: company vehicles and those who operate them. Ensure your miles are covered today!