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What are telematics?

March 14, 2018

Telematics systems are technologies incorporated into a vehicle that, among other things, allow driving behaviour to be monitored. Driver tracking can help fleet managers encourage more efficient and safer driving habits, which can translate into savings on fuel consumption and repairs. In-car tracking systems can also help defend you and your drivers from bogus insurance claims by providing detailed information about the accident.

Nowadays, telematics software is often factory-fitted by vehicle manufacturers as standard and thus falls under warranty. This benefits the manufacturers as it makes customers more likely to visit one of their dealerships for manufacturer-specific servicing and repairs. However, most manufacturers use different technologies to one another – albeit with similar functionalities – which poses a problem for fleet managers who operate different vehicle brands and models, but at the same time seek a single, standardised telematics solution across all their vehicles. For this reason, third-party telematics providers may be a more practical option for your fleet.

Telematics benefits overview

Telematics can help boost your bottom line by providing you with the data you need to increase fleet efficiency and compliance. Businesses stand to make savings through reduced fuel consumption, better equipment maintenance and reduced carbon emissions by identifying and correcting sloppy driving habits. Indeed, drivers are likely to be more careful in the knowledge that their vehicle use is subject to review.

Telematics data can also help you plan and coordinate journeys more effectively, leading to less vehicle downtime and greater business capacity. This, in turn, helps improve customer service and your overall productivity.

Finally, telematics can also help protect your fleet from unfair speeding fines and scam insurance claims. In fact, according to a survey by RAC Business, over a third of UK fleets have referred to telematics data to contest questionable fines and claims.