How telematics reduce crashes and claims costs

Commercial trucking and auto fleets are operating in one of the most challenging environments the industry has faced in decades. Repair costs continue to climb; liability claims have reached record levels and distracted driving remains a persistent and costly risk. According to the U.S. Bureau of Labor Statistics, motor vehicle maintenance and repair costs are up about 5% year over year in 2026, continuing to outpace overall inflation. In addition, severe accidents, coupled with higher legal verdicts and increased medical cost inflation have caused liability claim payouts to grow by more than $30 billion cumulatively between 2012 and 2021, according to the Insurance Information Institute (Triple-I). For fleet owners, this combination not only puts pressure on insurance costs, operational efficiency and long-term profitability, but more importantly, it impacts safety.

To help fleets navigate these challenges, more businesses are starting to turn to telematics as a practical, data-driven tool to improve driver behavior, reduce losses and gain greater control over risk. And the strongest and most consistent results come from programs that go beyond the basic tracking technology and focus on driver behavior change supported by expert guidance.

Turning data into safer driving habits

At its core, telematics is about transparency, driver support, and focus. Telematics systems give fleet operators insight into how vehicles are being driven, highlighting risky behaviors such as distraction, speeding, close following, harsh braking, and drowsiness.

These insights are critical at a time when distracted driving continues to be a major factor in losses across the industry. According to research from Cambridge Mobile Telematics (CMT), a U.S.-based telematics and mobility analytics company, 58% of trips in 2022 include a driver using his or her phone, often occurring at highway speeds. CMT also found in 2025 that drivers with a high level of cell phone distraction are 240% more likely to crash. For commercial fleets, those split seconds can lead to severe accidents, costly claims, and long-term business disruption.

Telematics allows fleets to move from reactively dealing with loss to proactively improving drivers’ behavior. Instead of learning about unsafe behaviors after an accident occurs, fleet managers can identify patterns early and intervene with targeted coaching and training. Real-time alerts and safety scores give drivers immediate feedback, helping them correct behaviors in the moment and take ownership of their performance behind the wheel.

At one business, for example, AI video telematics was installed in more than 800 vehicles within the company’s fleet. The technology revealed that patterns of driver behavior were increasing the likelihood of safety issues. After analyzing the telematics data, risk management worked with employee relations to develop driver training programs that proactively targeted the root cause behaviors to help address safety concerns before accidents occur. The return on invest was a substantial cost savings of $2 million in claim loss payments for the business.

Supporting drivers, not policing them

One of the biggest shifts in telematics adoption is how it is being used to support drivers, not surveil them. When implemented thoughtfully, telematics programs can improve driver

engagement and even reduce turnover—a critical and often overlooked benefit in an industry facing ongoing labor challenges.

By using objective data, fleets can create fair, consistent coaching programs that recognize safe driving and address issues constructively. Drivers who understand expectations and receive clear feedback are more likely to stay engaged and committed to safety. In fact, highly engaged drivers are shown to be significantly safer and less distracted on the road.

For fleets, that engagement translates directly into fewer accidents, less downtime, and a stronger safety culture across operations.

Real-world fleet results

Telematics benefits go beyond businesses with large national fleet operations. Small to mid-sized fleets are also seeing measurable improvements after adopting telematics solutions.

In another example, a mid-size business with approximately 100 vehicles faced safety challenges with distracted-driving incidents, as well as drivers following vehicles too closely, impacting operations and increasing risk. By working closely with risk engineering, the business implemented state-of-the-art AI video telematics across its fleet and designed specific coaching programs for its drivers to alleviate safety concerns. By addressing the issues directly through the telematics data, the business was able to reduce distracted driving by 42% and decrease instances of drivers following vehicles too close by 57%, significantly reducing risky behaviors. In addition, after the first year, the business saw a 76% decrease in accident frequency.

A broader approach to fleet safety

Telematics is most effective when it is part of a broader fleet safety strategy. Driver selection, training, supervision, vehicle maintenance, and loss analysis can play a role in improving outcomes. The technology, guided by expert review, strengthens each of these areas by providing data and insights, which help fleet leaders make smarter, faster decisions.

That is why many fleets are partnering with insurers like The Hartford that go beyond providing insurance coverage and offer deep risk engineering expertise, loss control resources, and access to leading telematics providers. These partnerships help fleets tailor solutions to their specific operations, whether their goals are reducing accidents, improving sustainability through lower fuel usage or better managing insurance costs.

Driving forward with confidence

In an industry facing rising costs and increasingly complex risks, telematics offers fleets a practical way to regain control. By encouraging safer driving behaviors, improving driver engagement, and turning real-world data into actionable insight, telematics is helping commercial trucking and auto fleets protect their people, their business, and their future—mile after mile.