3 Proven Ways to Cut Service Fleet Costs with Telematics Technology
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IntelliShift Team

Managing a fleet for your service company isn’t just about keeping vehicles on the road—it’s about making sure they’re on the right road, operating safely, efficiently, and without sending your costs through the roof. 

Telematics technology combines vehicle and driver behavior data to provide real-time insights into fuel usage, driver habits, vehicle maintenance, and more. By leveraging telematics, you can reduce costs, enhance safety, and maintain compliance with industry regulations. 

While over 80% of fleets incorporate telematics, many smaller fleets have yet to adopt this technology. This is more prevalent among service companies with smaller fleets who may be hesitant to adopt telematics, worrying it might be too complex or expensive.  

However, this hesitation could be costing your company money. 

>> If you want to discover additional costsaving strategies for your fleet, click here. 

Here’s how telematics can save your service company money. 

1. Cutting Fuel Costs with Telematics 

Fuel is one of the biggest and most unpredictable expenses for service fleets. With telematics, you gain control through real-time data on fuel usage and driver performance. 

Stop Wasting Fuel: Improve Driver Behavior 

Do you know which of your drivers are heavy on the gas? Telematics does. It tracks behaviors such as idling, speeding, rapid acceleration, and harsh braking—habits that can destroy your fuel efficiency. 

The U.S. Department of Energy notes that aggressive driving can burn 15-30% more fuel on the highway and up to 40% more in the city. 

With IntelliShift’s telematics platform, you can instantly catch and correct poor driving habits. In-cab coaching nudges drivers toward more fuel-efficient behaviors, which results in lower fuel bills, less vehicle wear, and fewer accidents. 

Smarter Routes, Bigger Savings 

Why waste fuel on inefficient routes? Telematics can guide your drivers along the most efficient routes by analyzing real-time traffic, road conditions, and other factors. 

With IntelliShift’s route optimization tools, your drivers spend less time driving around and more time serving customers. This not only translates into fuel savings but also happier customers. 

Aaron Blair, VP of Global Partnerships at Wise Systems, explains it well: 

“One of the biggest challenges is not managing the rules but managing the exceptions. A dynamic routing platform allows you to manage those vehicles in real-time, making proactive decisions instead of reactive ones.”  

route stops on map

2. Minimizing Maintenance Costs Using Predictive Maintenance 

Few things are worse than a vehicle breakdown—especially when it’s unexpected. Breakdowns lead to expensive repairs, lost time, and operational disruptions. 

Telematics helps you avoid these issues with predictive maintenance, allowing you to fix small problems before they escalate. 

Predictive Maintenance 

Instead of waiting for something to break, telematics monitors your vehicle’s health in real time. It tracks metrics like engine performance, tire pressure, and brake conditions. 

Deloitte estimates that predictive maintenance can reduce overall maintenance costs by 5-10%. 

As Erin Gilchrist, VP of Fleet Evangelism at IntelliShift, says: 

“Predictive modeling helps you stay ahead of problems. You can see when vehicles are about to break down and schedule services before things escalate. That way, you have parts ready, reduce downtime, and avoid last-minute costly repairs.” 

With IntelliShift’s predictive maintenance alerts, you can address potential issues early. This keeps your fleet running smoothly and avoids costly downtime. 

Extending Vehicle Lifespan 

Routine maintenance doesn’t just prevent breakdowns; it extends the life of your vehicles. Well-maintained vehicles last longer, delaying the need for replacements. 

IntelliShift’s vehicle lifecycle management tools ensure your fleet stays in top shape, maximizing your investment in each vehicle. 

Fleet Maintenance Monitoring Overview

3. Lowering Insurance Premiums with Fleet Safety Technology 

Insurance is a necessary expense, but it doesn’t have to drain your budget. Fleets with strong safety records often secure lower premiums, and telematics can help you get there. 

Safer Drivers, Lower Premiums 

Telematics for fleet safety gives fleet managers a window into driver behavior. It allows them to spot risky habits and correct them before they lead to accidents. 

The formula is simple: Safer driving = fewer accidents = lower insurance premiums. 

Fleets that implement telematics see an average of 20-30% reduction in accident rates. This reduction is a win for both your drivers and your insurance costs. 

IntelliShift’s fleet safety technology helps you create a culture of safety within your team. And fewer accidents don’t just mean lower insurance costs—they also mean keeping your drivers and vehicles safe. 

operator safety score

For example, Day & Nite, a commercial refrigeration, kitchen, and HVAC services company, cut rear-end accidents by 75% within six months of using IntelliShift’s AI dash cameras. Their improved safety score and faster claims processing contributed to lower accident-related costs and reduced premiums. 

Compliance and Risk Management 

Telematics isn’t just about saving money—it’s also a powerful tool for keeping your fleet compliant with industry regulations. From vehicle inspections to hours of service (HOS), telematics automates critical safety checks, helping you avoid violations and costly fines. 

IntelliShift’s compliance tools ensure your fleet is always road-ready, cutting down on operational hiccups and keeping your business compliant with DOT and other regulations. 

Conclusion 

Telematics isn’t just a “nice-to-have” technology—it’s a game-changer for service fleets. With real-time insights and actionable data, you can reduce costs, boost safety, and increase productivity across the board. 

From lowering fuel expenses to improving driver behavior, telematics helps your fleet work smarter, not harder. 

Want to learn more about how IntelliShift can help cut costs for your service fleet? Click below to learn more. 

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