What Is Fleet Management and How Much Does It Cost?

Fleet management is the process of organizing, tracking and maintaining a vehicle fleet, using a fleet management system (FMS). Typically, these commercial fleets will consist of cars, trucks and vans. Fleet management can also help businesses care for drivers' health and safety, save money on fuel, and make sure that they're obeying the law.

A fleet management system will cost about $20-35 a month, on average, per vehicle, or around $2000-$4500 per year for a fleet of 10 vehicles. This cost can vary significantly, dependent on your specific business needs, but the the efficiencies and cost savings will bring a return on your investment that justifies the price tag.

Let's take a quick look at how typical fleet management costs stack up across some of the biggest providers in the industry:

You'll notice immediately from the table above that there are some big differences, from $5 per vehicle, per month to over $40. Scaled up across a year for a small to medium fleet, and this difference can quickly become thousands of dollars.

Your best option when combing through the varying costs of fleet management software is getting price quotes from a range of fleet management software companies, all tailored to your operation. Tell Tech.co what you’re looking for and we can do this for you for free. Our simple form takes less than thirty seconds and can put you in touch with the best deals offered by a range of industry-leading suppliers who match your needs. Using Tech.co’s price comparison tool puts you under no obligation to buy.

On This Page:

• How Much Does Fleet Management Cost?
• Fleet Management Savings
• Why Use Fleet Management?
• Best Fleet Management Software Providers and their Costs
• Cheapest Fleet Management Providers
• Fleet Management Best Practice
• About Our Research
• Get Started with Fleet Management Today
• FAQs

In this guide, we'll talk you through what Fleet Management is, the typical price range for GPS tracking with basic or advanced Fleet Management, the cost-impacting factors to consider when picking one for your operation, and how these tools can, in the long run, save you more than you’ll spend.

Thanks to 24/7 real-time data monitoring and analytics, Fleet Management Software can boost a fleet’s efficiency, service and security. Plus, the top providers will have built-in ELD Mandate compliance, IFTA tools, and more.

What Is a Fleet Management System?

A fleet management system will normally have a hardware element — such as GPS trackers fitted to the vehicles — and a software element. The software element allows drivers to keep their records up to date, and gives bosses an easy way to see, at a glance, where their fleet is and how well they're performing. Fleet management systems can be used to dispatch drivers, provide route planning and traffic information, monitor fuel, and much more.

If your business uses a fleet of vehicles, it's well worth investing in a service — especially now the ELD Mandate has come into force. If you'd like to get an idea of the costs involved, you can get no obligation quotes from the top fleet management system providers using our simple fleet management quotes form.

A fleet management system is a bundled combination of hardware and software that includes three elements:

1. The Fleet Management Software device. Hardware sensors and an interface are installed or plugged into every vehicle in the fleet
2. The vehicle software. This collects data like engine status and vehicle location from each vehicle
3. The management interface software. Software that the fleet manager uses to receive and interpret data from all the vehicles.

Different fleet management software record different data. Those with sensors installed into a vehicle’s engine will receive more comprehensive data about the engine status than plug-and-go dashboard devices.

Some operations do only or mostly “less than truckload” (LTL) shipping, meaning that a single truck is delivering goods to multiple clients. These fleets should look for LTL-friendly fleet management software, which includes a specialized load optimization service not offered by TL-oriented fleet management software.

The best fleet management software come with active data trackers rather than passive ones. This means the data sent by an fleet management system might refresh as often as every few seconds or as rarely as every ten minutes. A passive tracker collects data on the go but only transfers it to the software later. Near-real-time data updates are essential for a truly effective fleet management software, so fleet managers can react quickly to important updates, such as late deliveries, or vehicle faults. Some fleet management software may even be operated using smartphone apps, making it even easier for managers to respond to situations.

Advanced fleet management solutions may also offer accessories such as in-cab driver coaching devices.

What's the difference between GPS tracking and Fleet Management?

GPS trackers aren’t technically FMSs, as they typically don’t record anything beyond a vehicle’s location. They’re useful for personal anti-theft measures and limited fleet management, but won’t provide most of the benefits explained below.

Basic FMSs focus on only a few features. Logging driving hours and work breaks along with fuel management are features that tend to be covered. Fleet managers opting for a basic FMS should make sure it covers routing and dispatch at the very least, to be worth the investment.

Advanced FMSs include add-ons beyond just the necessities to maximize fleet efficiency and ROI. Parts, tire, and tool management might fall into this group of features, as well as accident and maintenance tracking. These systems usually offer ELD compliance, with the main goal of giving a fleet manager as much knowledge and power to run their business as possible.

In other words, GPS tracking is a subset of fleet management. Any FMS should be able to track vehicle location, with added features too.

FMS and ELD Compliance

An ELD, or electronic logging device, is a device with which all U.S. commercial motor vehicle drivers must record their hours of service, as required by the Federal Motor Carrier Safety Administration. You can read more about the guidelines and consequences for noncompliance in our full ELD mandate guide.

Not all FMSs are ELD compliant, but following the recent requirement that all HOS must be recorded through ELDs, most fleet management software vendors have made sure their service offers the option. Still, you should make sure your FMS has ELD compliance covered before you commit to it. We cover the best ELD compliant FMSs on the market, just to give you an idea.

How many vehicles can I track?

Fleets of five vehicles can benefit from an FMS as much as those with thousands of vehicles. Some fleet management software vendors can serve larger fleets than others though. If an FMS provider is equipped with a large enough team of developers and customer service specialists, it can serve fleets of thousands of vehicles. Each of Tech.co’s fleet management software reviews outlines the fleet size that provider can cover.

What kinds of vehicles can be tracked?

An FMS is designed to track standard vehicles, like cars, vans and trucks, but some providers also offer additional asset tracking software for managers to track other kinds of valuables. These might be unmoving, such as warehouses or sensitive equipment, or might require additional data tracking, such as refrigerated units which must be kept below a certain temperature. Tech.co offers price comparison services for both fleet management Software and asset tracking software, and we've listed the best trucking-specific dispatch software as well. Make sure to ask what features might be available for your particular vehicles or assets when making an enquiry.

Fleet Management Video Guide

For a better understanding of how a fleet management system can transform a business, it's helpful to look towards a case study.

Verizon Connect is one of the top fleet management providers around – click the video for a closer look at how this system can work.

Fleet Management Costs

Fleet management software pricing typically ranges from $15 to $50 per vehicle per month, depending on the features and size of your fleet.

For a small fleet of 10 vehicles with basic features, you can expect to pay around $15 per vehicle per month, or $180 per year. A larger fleet of 50 vehicles with more advanced features, such as real-time tracking and reporting, could cost upwards of $50 per vehicle per month, or $2,500 per year.

This table shows typical cost ranges per each vehicle in a fleet of trucks:

It's worth understanding how much costs can vary depending on the scale and requirements of a business. The top fleet management providers will always tailor their costs around your needs. This can make it seem trickier to compare pricing – to help, we'd recommend using our simple fleet management pricing quotes tool. It takes just a minute to fill out, and can help you compare tailored quotes with ease.

What Influences Fleet Management Costs?

The total price given for an FMS potentially covers four different costs, though this can vary depending how each company structures its quotes:

• Devices — each vehicle must have a hardware device, which can be bought or leased
• Software licenses — a monthly or annual subscription fee covers the licensing of the software used, and varies depending on the services offered by the software
• Installation services — a wired device must be installed, while a plug-and-play device is not. Some FMS companies offer free installation, while others install devices for free only if the fleet signs a two or three-year contract, and some charge regardless.
• Training — some companies might offer training in the form of manuals, webinars, live online support, in-person sessions, or a combination of these

The price will also be affected by:

• Size of your fleet — almost all FMS companies charge per vehicle (or user) per month, so a larger fleet will pay more than a smaller fleet
• Features required — different FMSs track different types of data, from ELD compliance to fuel tracking to alerts on when best to rotate your tires, and on average, more extensive features will cost more
• Vendor — no FMS company is the same, and vendors’ prices can fluctuate
• Type of shipping service — Less-than-truckload (LTL) shipping operations should check to ensure an FMS tracks multiple destinations along a single route
• Additional hardware needed — Some further costs may be necessary, yet not included in FMS pricing. For example drivers might need company tablets or smartphones to access their data on the move, and use the FMS to pass roadside inspections. This would not be included in the FMS package.

Fleet Management Savings

Initial costs for an FMS may seem high but one of the main reasons fleet managers love these tools is for the cost savings they get in return. How?

Fuel Savings

The data includes how long certain drivers allow their vehicles to idle, and how fast those idling vehicles burn through fuel. Paired with the improvements it offers in routing, a fleet tracking system can save the average operation 13.2% on fuel — which can account for as much as a third of an operation’s budget.

Less Harsh Braking

Sudden stops are also tracked by many FMSs, allowing fleet managers to note which drivers are braking harshly the most often. Cutting down on these incidents keeps a fleet’s brake pads in good condition longer, saving on repair costs.

Less Engine Idling Time

If the engine status is active but the vehicle is at rest, the fleet management software will know the engine is idling. The fleet manager can discuss excessive and frequent idling with their drivers to reduce future wasted time.

Less Overtime

Since FMSs track each driver’s overtime hours, fleet managers will be able to help drivers avoid overtime when it happens — and not learn about it when balancing the checkbook weeks later.

Faster Service

GPS-powered fleet management systems save transportation operations approximately 54 minutes per day, according to one Motorola study. Those numbers translated to $5,484 per employee.

Centralized Data

According to research from Aberdeen Group, fleet operations with an FMS are more than twice as likely to have a centralized repository for data collected on the road, to integrate that data into their back office, and to have data scientists dedicated to analyzing it. Granted, that correlation doesn’t necessarily mean the FMS causes this data-driven approach, but the FMS certainly provides the digital field data that allows it to happen.

With data on everything from vehicles’ downtime to the speed certain routes can be completed in, a fleet operation can optimize its dispatches: FMS information can go straight into a company’s bottom line.

Get Accurate Fleet Management Price Quotes

As discussed above, the true cost of a fleet management system really depends on a host of factors.

The best way to get accurate price estimates is to get a tailored quote. But there's no need to trawl the web repetitively in search of comparable prices.

The quickest path to an accurate FMS price quote is to fill out our simple fleet management costs comparison form. By putting in a few quick details about your business needs, we can connect you to a range of industry-leading companies so you can compare tailored quotes.

Why Use Fleet Management?

There are plenty of benefits to using a fleet management system. It can reduce costs and risks while also helping you improve efficiency.

It's also the law. The ELD Mandate made it essential for businesses to track their drivers' working hours using some sort of electronic logging device — a fleet management system will help you do this.

A good fleet management system will also help you with:

• Dispatch management — route planning and communication with drivers
• Tracking and diagnostics — live data on vehicle location and status
• Fuel management — data on how quickly fuel is used
• Vehicle maintenance — customizable maintenance alerts can be set
• Financing — data on the wear and tear vehicles undergo
• Health management — data on the duration of drivers’ work hours and breaks
• Safety management — data on vehicles’ driving and cornering speed can identify high-risk drivers

A typical fleet management system collects this data while plugged into or installed in a vehicle’s dashboard. It then sends the data via a GPS to a fleet manager’s central hub.

A fleet management software also benefits a fleet operation through a few measures that may not result in immediate savings, but can prevent potential catastrophes down the (metaphorical) road.

• Anti-theft — Sure, managers can purchase separate anti-theft trackers, but if a fleet management software is on board, it will track a vehicle’s location at no extra charge.
• Vehicular control — Some fleet management systems don’t merely track data, but are given a measure of control over the engine, allowing managers to remotely limit speeds or slow and stop vehicles when necessary, preventing mistakes or collisions.

Better Safety

Fast response times can make a difference, and any GPS fleet tracking system can alert a fleet manager within minutes from anywhere on the globe. Pen and paper systems can’t do that.

Plus, since most FMSs collect data on driver’s unsafe habits, from harsh breaking to tight turns to speeding, a manager can address concerns before they turn into traffic collisions. How large an impact does an FMS have on fleet safety? According to the Federal Motor Carrier Safety Administration itself, ELDs are estimated to save 26 lives per year.

Fewer Emissions

Since an FMS can track and ultimately cut down on fuel costs, your operation will burn less CO2 to get where it’s going. By one operation’s estimate, saving $250 in annual fuel costs per vehicle will cut carbon emissions by 2,500 pounds per vehicle each year.

Less Travel Time

Fleet management systems are designed to find the shortest and most fuel-effective route, and to avoid empty runs when possible. One side-effect: Drivers will have the downtime they need between routes. Drivers with traffic-sensitive navigation systems, one Nustats study found, can cut 18% on the road on any given trip. For the average driver, that’s a full four days out of the year.

Best Fleet Management Software Providers and their Costs

Now that you understand what fleet management software can do for your business, take a look at some of the best providers below to get a better idea of what you're working with.

Verizon Connect Reveal

Verizon Connect is one of the top fleet management companies you can choose. Its Reveal system is easy to use, and simple to get your head around. Verizon Connect Reveal also has loads of features including engine diagnostics, and fuel efficiency monitoring. What's more, it has best-in-class customer support. Verizon's costs start from roughly $23.50 per vehicle per month.

Samsara

Samsara is a relatively new fleet management company, having only been set up in 2015. However, it offers a very complete fleet management service with all the core features — driver safety, fuel tracking, routing and dispatch, for example — while also benefitting from a simple installation process and strong support options. Samsara also has strong customer support and employee training options, making it ideal for growing companies. Samsara's costs start from around $27 to $33 per vehicle per month.

Teletrac Navman

Teletrac Navman is one of the biggest fleet management companies in the world, with service coverage extending to the US, Canada, and Mexico along with the UK, Australia, and New Zealand. Teletrac Navman's fleet management sustem offers GPS vehicle tracking, two-way messaging, safety alerts, and in-depth vehicle diagnostics at very reasonable rates. Teletrac's costs start from about $25 per vehicle per month.

US Fleet Tracking

US Fleet Tracking doesn't offer a full fleet management system. Instead, the company focuses on selling GPS trackers for vehicles. This means you don't get as many features with one of US Fleet Tracking's services, but it can be a good value option. For example, you won't be able to monitor fuel efficiency, but you'll be able to see where every vehicle in your fleet is in real time. You'll also be able to review fleet movements, and it's ELD compliant.

US Fleet Tracking's pricing starts at $24.95 per month per vehicle for a satellite tracker that updates just three times a day, while its “Blazing Fast” real-time tracker, which updates every five seconds, costs $39.95 per month per vehicle.

Fleetio

Fleetio is a software-only company, meaning that drivers and fleet managers use apps for communication and tracking. This makes Fleetio cheaper than much of its competition — although without a hardware component, it isn't ELD compliant. The service has three plans: Monthly License:
Starter is $3 per vehicle per month, while Pro raises that per-vehicle-per-month cost to $5 and Advanced brings it to $7.

Despite it being software-only, Fleetio has a decent range of features. For example, you can set up driver scheduling, and keep an eye on vehicle maintenance. If you're after ELD compliance with Fleetio, you can install a tracker from one of its hardware partners.

Most Affordable Fleet Management Cost Options

Our research team has dug into the data on the best fleet management providers on the market today. Here are the least expensive brands, along with data covering the contract lengths, warranties, and trial periods available to their users.

Granted, the value that an FMS offers should be considered, too: A feature-rich system will more than pay for itself. If you're looking for the greatest value, we'd still recommend Verizon Connect Reveal for its wealth of feature and great support, all at an industry-typical starting cost of $23.50 per vehicle per month.

Fleet Management Best Practice

As with any management software, fleet management software opens fleet managers up to a few vulnerabilities if not used responsibly. Here are the downsides to fleet management systems that you should be aware of.

Don’t Intrude on Privacy

A fleet management software isn’t exactly designed to respect a vehicle drivers’ privacy. It records their speeding habits, their location, and how quickly they take a 90-degree turn, after all. This is perfectly legal during working hours, though employees should be made aware of what’s being tracked and why. However, if a fleet operator’s vehicles are ever used privately by employees, the operator should take care to disable the fleet management software for these trips.

Manage Drivers’ Expectations

Speaking of privacy, drivers in a fleet may be upset at switching to a fleet management software and away from a passive GPS tracker or a paper logging system. Having their driving habits and overtime tracked may make them uncomfortable. The best approach to introducing a fleet management system is transparency and open communication. Depending on the fleet management software provider, driver training courses may be provided to ease them into the new process.

Some businesses also choose to alleviate any negative feelings employees might have around tracking by providing rewards based on the new data. For example by offering bonuses to the most fuel-efficient drivers or those with the lowest records of harsh braking. These awards can be allocated easily using the driver scorecard reports offered by many fleet management systems.

About Our Research

You might be wondering how we came up with these fleet management cost numbers, or even what our process is when it comes to deciding which providers are the best. Well, you can rest assured that our team is spending hours partaking in in-depth research that is designed to provide you with the most valuable insights to make the right decision.

When it comes to fleet management, we put providers through the wringer to ensure you have the most up-to-date information across the board. We measure metrics like pricing, tracking, driver management, vehicle management, product features, and help and support, so you can decide whether a particular provider is right for you.

To peak behind the curtain of our research process, be sure to check out our in-depth guide that outlines exactly how we rate and rank business software across our site.

Frequently Asked Questions