What Is A Telematics System?

What Is A Telematics System?

Vehicle technology is progressing at a phenomenal rate – and we’re not just talking electric and kinetic here, but also the in-car facilities such as telematics.

Telematics, which is an in-vehicle technology that relates to the capture of long-term information, includes devices such as the cameras in cars, smart AI, and black boxes, and they are helping to increase driving safety and re-shape commercial vehicle insurance premiums.

These devices constantly collect, save, and sometimes send information – creating a data-self for the vehicle and driver.

Not sure that sounds good? Your business could benefit

Historically, insurance has been based on general statistics; car type, previous accidents, driver history, local crime rates and so on. But what if you could arm insurers with details on how carefully a driver performs based on real-time data – that would mean truly personalised premiums.

Obviously, no one wants to pay higher insurance premiums because they’re being grouped or stereotyped with the careless drivers – especially if we, as a business, employ and promote careful and considerate driving.

In addition, telematics can provide tracking for a fleet of vehicles, giving visibility of simple elements such as drive time, to much more advanced uses such as increasing efficiency, profitability, and customer app integration to improve customer service.

Safer drivers drive down fleet insurance premiums

As a business, it makes sense to encourage those branded fleet of cars or vans to be safe and considerate on the road for safety and reputational reasons, but saving money is by far the biggest business incentive to use telematics like dash cams and black boxes.

In addition, the use of dash cams and black boxes can be essential in the event of an accident. Again, we are arming the insurer with details of speed, history, and what was recorded to prove your driver wasn’t at fault.

Equally, if the driver is at fault, these systems will still speed up the process and give businesses the option to include driver safety/at-fault claims in team performance metrics for repeat offenders.

Telematics isn’t the complete solution for driver safety, with many other technological advances such as lane safety, anti-collision, and many more – but they’re certainly a step in the right direction.

What are the affordable routes to a telematics?

So, how do you decide which product to choose and what is affordable for your fleet? The majority of fleet telematics include a box (collecting data) and a front-view camera.

The options with regards to data and integration are vast and depend on your budget. They can be separate into tracking devices (black box) and dashcams for safety and insurance connectivity. So, depending on what you need, you can buy good dashcams as a minimum and consider a tracker upgrade at a later date.

Here are some considerations:

  • Firstly, high-quality video capture and memory are essential
  • Easy installation, positioning, and user-friendly
  • Do you need tracking or in-app information?
  • Parking and collision sensing?

A well-reviewed dash cam can cost as little as £150, whereas a more substantial system with dash cam and tracking will incur a £100-250 per tracker/camera investment plus an annual license cost.

The key takeaway

Telematics systems can save you money on fleet insurance costs by improving driver performance and giving insurers driver data.

Like To Know More?

If you would like to know more about saving money on your fleet or business vehicle insurance cover or would like some help getting the fleet insurance that’s right for you, then please contact us. You can call the Coversure Kidderminster team on (01562) 822664, email us by clicking here or request a no-obligation fleet insurance quote here

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