Cargo Transporters - Case Study

CARGO TRANSPORTERS REDUCES FRAUDULENT CLAIMS COSTS WITH THE DRIVECAM® PROGRAM

Problem

  • Too many fraudulent claims and wrongful accusations of drivers
  • Safety department spending too much time reacting after collisions
  • Litigation costs negatively impacting the company’s bottom line

Solution

  • Outfitting entire fleet of tractor-trailer trucks with the Lytx DriveCam®safety program
  • Showed drivers video clips that exonerated innocent drivers, to highlight expected benefits and gain buy-in
  • Shifted safety operations department’s focus from reactive to proactive

Results

  • Significant reduction in fraudulent claims and litigation costs
  • Improved driver behavior, especially by increasing following distance which helped reduce rear-end collisions
  • Savings from two wrongful claims case exonerations paid for the entire program

The DriveCam Difference

Cargo Transporters, Inc., located in North Carolina, is a transportation operation that delivers truckload and dry van service in the forty-eight continental United States.

Named as a Top 100 Carrier by Inbound Logistics Magazine, the company is known for its innovative solutions and cost-saving strategies that help shippers gain a competitive advantage. And it applies the same proactive approach in continually improving its own operations, especially where risk mitigation and safety are concerned.

“There is nothing that is more important to us than the safety of our drivers and the safety of the motoring public,” says Cargo Transporters Chairman John Pope.

However, like many commercial transportation businesses, the company was facing its share of safety challenges—experiencing accidents and needing to find ways to reduce fraudulent claims and exonerate drivers from wrongful accusations.

Knowing that a change was needed to take its safety program to the next level, the company launched the DriveCam® safety program, including outfitting its entire fleet of tractor-trailer trucks with DriveCam video event recorders. As Pope said, “The DriveCam solution was our next step to really step up our safety program.”

The Power of Video and Driver Coaching

Since installing DriveCam video event recorders across its fleet, Cargo Transporters has seen a significant reduction in fraudulent claims and litigation costs. In fact, with the savings from just two wrongful claims, the DriveCam driver risk management program has already paid for itself.

In both claims, when Cargo Transporters showed the opposing attorneys the videos, they immediately dropped their cases. “Primarily, we wanted to prove that our drivers were safety conscious and were not the cause of these incidents,” said Pope. As a result, the company saved between $50,000 and $100,000 in simple litigation costs in each of the two claims.

In addition, driver behavior has markedly improved— especially in areas of following too close and rear-end collisions.

“With the DriveCam footage, we get a first-hand view to see what the drivers are seeing. We see how traffic is interacting with our vehicle, and how our drivers are interacting with other traffic,” said Vice President of Operations, Jerry Sigmon, Jr. By combining DriveCam video input and professional analysis with driver coaching, drivers’ behaviors on the road are continually becoming safer.

Deciding On and Implementing the DriveCam Solution

“The primary thing that sold us on the DriveCam program was the fact that it’s a turnkey solution,” said Pope. “The event gets recorded, it gets transmitted to the DriveCam server, and a professional then reviews that data, scores it, and analyzes it for our operations to then act upon.”

With its simplicity, ease of use, and all-inclusive nature, Pope felt confident that the DriveCam solution would address the company’s need for documented video evidence to prove fault in collisions and refute fraudulent claims, as well as to improve driver behaviors.

Of course, implementation of a video-based driver risk management program can be a sensitive topic and, indeed, a delicate process for drivers, as was the case for Cargo Transporters.

“We knew there was potential for drivers to feel as if their privacy was being invaded, and we felt it was extremely important for them to understand what the system does and how it functions,” said Pope.

As part of ongoing efforts to educate drivers about the DriveCam program, Cargo Transporters makes sure to highlight the benefits drivers can expect.

“From the time our drivers open the door to get into the truck they’re at risk, and I see the DriveCam program as a tool to help manage that risk,” said Cargo Transporters President Dennis Dellinger. “We show clips that have exonerated drivers, and once we do that, we actually have drivers who step up and say, ‘Put a video recorder in my vehicle’.”

Conclusion

As a result of using the DriveCam video event recorders and driver risk management program, Cargo Transporters has improved driver behaviors across its fleet, reduced fraudulent claims, exonerated drivers, and decreased litigation costs significantly.

Pope concludes, “To us, the biggest value is having an eye and an ear out there with the driver, to know what the driver has encountered. What a carrier can get from the DriveCam program is tremendous and in our opinion, pays for itself.”

Dellinger concurs. “My suggestion to someone looking to purchase? I can sum it up in one word: Priceless.”

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