Daimler Financial Using Telematics to offer Insurance Savings, Leasing Flexibility

Daimler Truck Financial Services is now offering insurance and leasing programs that use the power of telematics to give fleets savings and flexibility.

DTFS has partnered with High Definition Vehicle Insurance (HDVI) to offer Dynamic Insurance, a solution that gives fleets the power to reduce their rates while promoting safe driving.

Using telematics-based technology, Dynamic Insurance starts with competitively priced insurance featuring broad coverage, flexible payment terms, enhanced forms of coverage and no hidden fees. The service expands with tools that let fleets set safety goals and benchmark metrics and engage with drivers. Customers benefit from a combination of their drivers' safety and technology, which can result in a reduction to their monthly premiums.

Dynamic Insurance

In an interview, VP of Sales & Marketing Tobias Waldeck explained that Dynamic Insurance is liability insurance based on telematics from electronic logging devices and in-cab cameras. “In a way you pay for how your drivers drive.”

The service offers a competitive base rate, “but then if your drivers drive safely and according to certain parameters you can get up to a 12% discount.” The premium never exceeds that base rate.

Telematics data that is taken into account includes factors such as geolocation, time of day, miles driven, safety-critical events such as speeding and hard braking, following distance, and forward-facing dash cams.

The dash cams are a key element, Waldeck said. “HDVI in their research found out a lot of times when accidents go to court, it’s the victim’s’ word against the driver’s. Having front-facing cameras provides crucial background of what actually happened.”

If a fleet’s current dashcams are up to the technical specs of the program, they can be used for Dynamic Insurance. If not, “we would put the cameras in as part of the signup of the fleet,” he said. Fleets that have a camera solution that is compatible will be reimbursed for its monthly service costs for the life of the policy. If your cameras aren’t compatible, new cameras will be installed and again, service fees will be paid for the life of the policy.

Improving Safety Programs

On top of that, Waldeck said, HDVI works with fleet customers to determine where their safety programs could be improved, as shown by the data.

The program includes a library of videos will help drivers stay on top of safety topics and help fleets demonstrate their dedication to safety.

Waldeck explained the need to partner with HDVI for the Dynamic Insurance product.

“We currently own an insurance agency and do very basic stuff, mostly gap insurance, dealer lot insurance, it’s at the point of sale, a hands-off approach for us. Liability was never a strong point for us, [but] we recognized it is an underserved market. With our investment in the connected vehicles, we started looking at what was out there and found HDVI, staffed with people who really understand insurance and understand trucking.”

HDVI is the insurance provider, and Daimler sells it through its dealerships. “We believe in it, that’s why we branded it as Freightliner Dynamic Insurance.”

At the moment, the offering is somewhat limited. HDVI is in 17 states.

Waldeck said the company initially is targeting smaller fleets, under 100 trucks.

Dynamic Lease

Dynamic Insurance marks the second dynamic product from DTFS, joining its Dynamic Lease product in offerings tailored to customers based on telematics data.

Powered by Detroit Connect telematics, Dynamic Lease uses mileage data to bill variable payments. When a truck stays within the base monthly mileage allowance, the operator will be billed a base monthly payment. When it’s driven more than the base allowance, the fleet pays for those overages on a monthly basis.

By paying for actual mileage driven, Dynamic Lease allows fleets to better align cash flow with usage and to avoid large lease-end charges.

“In less than a month we’ve signed up five new customers and we haven’t really even marketed it,” Waldeck said.

He sees the service appealing to three customer groups:

1. Seasonal businesses such as agriculture
2. Team drivers. “You put a lot of miles on it; in a [traditional] lease when it ends you incur heavy penalties.”
3. A fleet that’s worried about an upcoming recession or leaner times. “You want almost built-in flexibility,” he explained. This way, “If you’re not hauling as much freight you’re not paying as much” for the truck lease.

“We’re slowly building an ecosystem around the connected truck," Waldeck said. "The truck is becoming a supercomputer on wheels.”

[Editor's Note: This news was updated on Nov. 15 at 10 a.m. CT to remove mention of HDVI's driver rewards program, which is no longer provided, and update the number of states HDVI is available in.]