According to a recent study conducted by the Virginia Tech Transportation Institute (VTTI), funded by the Federal Motor Carrier Safety Administration (FMCSA), implementation of driving behavior management systems using in-vehicle telematics devices can result in a significant reduction in the number of risky driving behaviors. Based on this research, Travelers (TRV)is paying its customers in the form of insurance discounts of up to 15% to educate their employees in safe driving by using data obtained from fleet telematics devices.

Similar to global positioning systems (GPS), fleet vehicle telematics go beyond navigation and positioning by storing and sending data on how a vehicle is operated. Fleet telematics devices can help reduce fleet maintenance costs, improve vehicle efficiency and result in insurance discounts. Recently Travelers (NYSE: TRV) announced a potential discount of up to 15 percent on certain auto liability insurance premiums for qualifying businesses that effectively use vehicle telematics technology to monitor their company owned commercial fleet vehicles and driver behavior.

Travelers Insurance is one of the world’s largest insurance companies. Traveller’s Insurance announced this week that it is now paying fleets in the form of insurance discounts if the fleet installs fleet telematics systems. According the a TRV press release, the fleet must install vehicle telematics technology “in a sufficient number of their fleet vehicles and that they are actively incorporating safety information from the devices into their ongoing safety feedback to drivers, at least on a quarterly basis.”