SPECIAL REPORT


Does Safety Save Money?


The complex cost-saving calculation of new technology, driver coaching and insurance claims Written by Amanda Pampuro


O


n paper, the calculation seems simple enough: If well-trained drivers operate school buses equipped with safety devices that reduce traffic collisions, then insurance


claims and premiums should likewise decrease. In reality, insurance brokers say no single piece of technology or training technique is enough to warrant lower premiums on its own. But combined, these tools can help protect a fleet from liability in court. “The biggest takeaway is it hopefully leads to less claims, which would ultimately drive down your cost,” said Kyle McClellan, a practice leader at NSM Insurance Brokers. “There’s not a direct correlation, like when you bundle your insurance together and you’re going to save 10 percent. But fewer claims leads to fewer dollars spent on insurance.” While carrier insurance rates vary depending on fleet


22 School Transportation News • JULY 2025


size, vehicle type, routes and loss history, rates have con- sistently trended upward nationwide. Over the past year, the Consumer Price Index cal-


culated motor vehicle insurance rising an average 6.4 percent. In one extreme case, the David School District in Oklahoma saw a 328-percent increase in insurance rates from 2020 to 2022, rising to $261,000 from $61,000 annually, per Education Week. Rising rates often result in shopping around for better


policies. When it comes to negotiating rates, McClellan said


two pieces of school bus technology are particularly attractive to providers: Cameras and telematics. “Those allows us on the broker side to meet with school bus contractors, identify what they’re doing, how they’re doing certain things, and then go to the insur- ance market and tell them, here’s the reasons why you’d


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