Why Use Telematics?

Why Use Telematics?

Table of Contents
    Add a header to begin generating the table of contents

    The term telematics is a portmanteau of the words tele (communications) and informatics (computers and their use). In its broadest sense, IoT refers to using communication and information technology to store, receive, and transfer data to far-flung items through a network.

    It's important to remember that this broad field could include communications, wireless networking, electrical engineering, information technology, and even vehicular transportation.

    As GPS technologies have been integrated with the capabilities of mobile devices, telematics allows us to store, send, or receive information to control distant objects, especially automobiles in motion.

    Because of the wide variety of uses for telematics in cars, the phrase is often confined to the auto industry. It's essential to remember that this phrase can be applied to all gadgets connected to a network.

    Several studies have revealed that "locating automobiles" is the primary motivation for an organisation to implement telematics.

    Although 17% of small fleets use telematics, this number rises to 47% for those with 10–49 vehicles and 56% for those with 50+ cars and vans, indicating a clear preference for larger fleets to employ the technology.

    While the price of telematics has decreased in recent years, its widespread adoption by fleets has increased dramatically. It doesn't surprise us that one-third of fleets are already using it.

    What's more, it's intriguing that most fleets identified the top reasons for utilising telematics, indicating that there's no single reason why firms start to utilise the technology. Instead, the advantages of telematics in terms of safety, cost, and efficiency are pushing the technology's widespread use.

    Frequently Asked Questions

    A need to keep track of their fleet at all times, optimise fuel consumption, reduce pilferage and ensure driver safety has led to the mainstreaming of vehicle telematics solutions in fleet operations.

    Telematics control unit (TCU) is the embedded onboard system that controls wireless tracking, diagnostics and communication to and from the vehicle. These systems can be used in eCall crash notification, electronic tolling and vehicle tracking, among many others.

    Telematics can be integrated with all types of vehicles and vehicle fleets in a variety of ways; the three primary capabilities of telematics include wireless communication, location services and GPS location tracking, and a computing platform for system control and interface to automotive electronic systems.

    Telematics assists in six core areas of fleet management: productivity, safety, fleet optimisation, compliance, integration and sustainability. In insurance telematics, vehicle owners share safety data with their insurance company to help lower the cost of premiums, if they can prove safe driving habits.

    Telematics helps to enhance driver safety by providing finely-detailed insights into how both drivers and vehicles perform on the road, alerting fleet managers to risky driver behaviour so that these can be addressed either through training or, where necessary, disciplinary action.

    Why Businesses Are Using Fleet Telematics

    why use telematics (2)

    Businesses are increasingly adopting telematics solutions as a practical means of improving fleet management. Telematics systems provide many benefits, including those related to worker safety and the reduction of overhead costs. To better monitor progress and zero in on areas for development, an increasing number of businesses are looking to implement telematics.

    We'll examine the enhancements in greater detail to see what businesses can do:

    • Improvements in Security
    • Save on gas money
    • Reducing Insurance Premiums
    • Reductions in the Price of Repairs
    • Improved Efficiency

    Improvements in Security

    Fleet managers place a premium on employee safety. Companies today have a responsibility to ensure the health and safety of their employees on the job, and telematics helps them fulfil that responsibility regarding their lone and remote employees who are in danger. A company's employees must know they may leave work and go home to their families without worrying about what might happen if an emergency arises.

    It is crucial that fleet managers can rapidly check in on their staff members in the event of an emergency. A telematics system can readily integrate with an organisation's other IT infrastructure to provide critical alert information to the appropriate people.

    To guarantee that their drivers operate their vehicles safely, businesses can use telematics to monitor and compare how their employees use them against industry standards. They are making a potentially deadly workplace atmosphere safer for employees.

    Last but not least, lone employee duress devices enable employees working alone in high-risk roles to send alarms covertly, allowing them to ask for help without escalating a potentially dangerous situation.

    Fuel Savings

    Telematics can help you save money on gas by reducing your fleet's overall usage. Organisations can pinpoint the root causes of their fleet's high operating costs and inefficiency by monitoring employee driving habits. Aggressive drivers waste an extra 10.9% of fuel per year on average, whereas seasoned motorists can save as much as 30%.

    Enhanced fleet routing is another way that businesses can save money. Staff productivity increases, and operational expenses decrease when wasteful routes are identified, and local vehicles are dispatched.

    Reduce the Amount You Spend on Insurance

    Telematics systems have grown in popularity among businesses that hold non-powered assets and seek to save insurance costs by either self-insuring or enhancing the possibility of asset recovery to lower insurance rates and excess.

    Methods of accomplishing this include:

    • Monitoring less expensive tools in the event of theft. While insurance might not be cost-effective in this situation, the potential loss would nonetheless have severe consequences for business operations if funds were lost.
    • When stolen, asset and vehicle recovery rates should be improved. Rather than paying for insurance, some businesses opt to self-insure using non-powered asset tracking to increase the possibility of a swift recovery while lowering associated costs.

    Reduced Upkeep Expenses

    If problems arise on the road or your fleet needs to be maintained regularly, the costs associated with maintenance could add up quickly. But, with proactive maintenance, these expenses can be avoided or significantly reduced. Companies use telematics to aid in proactive fleet maintenance, which has been shown to save maintenance costs by as much as 30 per cent.

    Fleet managers benefit from mileage monitoring because it provides them with up-to-the-minute data they can use to schedule maintenance and head off costly problems before they escalate. Fewer vehicles would experience unexpected problems so the business can save money in the long run.

    By performing routine maintenance on your car, such as checking the pressure of your tires once a month, you may increase your fuel efficiency by 3 per cent. Similarly, changing your oil every 5,000 miles can increase fuel efficiency by 1 to 2%. In addition to the efficiency gains, preventative maintenance increases driver and vehicle security.

    Improved Efficiency

    When a telematics system is implemented, fleet managers can access valuable data. A feedback mechanism enables growth and development inside the organisation thanks to recording data like driver behaviour, driver hours, and route details.

    Fleet managers aren't the only ones realising that gamification's potential for employee motivation makes it a must-have option. By compiling fleet drivers' stats into rankings, businesses may incentivise safer driving and help employees better connect their goals with the company's. Using gamification has been demonstrated to increase safe driving practices by 50% and reduce fleet accidents by 84%.

    In What Ways Does It Function?

    In the early days of the area of telematics, information was gathered solely through the use of telematics devices and onboard computers (OBDI and OBDII). Data such as vehicle breakdowns, engine details, and fuel efficiency were integrated with data received from our phones, notably GPS location, driving behaviour (braking, accelerating, breaking speed limits), and mileage due to the rising use of mobile phones, especially smartphones.

    All the data gathered by your phone and car's sensors is then sent to specialised cloud-based systems for analysis. As technology advanced, telematics systems also opened up to be used with other programs and mobile apps, expanding their usefulness. Thanks to this connection, it is now possible to integrate data on your phone/vehicle with data from other sources, such as weather warnings or data from different kinds of cameras/tachographs. Insight about corporate operations and driver behaviour could be gleaned more precisely.

    Users can access data, export it, and utilise it to make crucial reports for the company, such as the top ten drivers in terms of score or even the number of accidents caused by reckless driving.

    Several insurance companies offer annual premium discounts of up to 30 per cent for drivers willing to share their telemetry information. Insurance firms can quickly tell whose policyholders present the greatest danger and target their advertising toward the safest possible drivers by keeping tabs on things like usage patterns, speeds, and other indicators of risky driving.

    Telematics System Functions and Advantages in Vehicles

    why use telematics

    In general, telematics systems share some functions included in their entry-level subscription tiers.

    Auto-Collision Notification

    In the event of an accident, drivers whose vehicles are equipped with telematics can rest easy knowing that assistance is on the way. Telematics can detect the crash and immediately contact emergency services. The modem is safe and will continue functioning even if it is dropped or damaged. The antenna's signal is usually more substantial than a mobile phone's, so the system can connect to the central office.

    Emergency Help

    An "SOS" button on a telematics system can be utilised in an unrelated emergency. This is a practical kind of protection if you require medical attention or observe a crime in progress. You can quickly contact rescue workers in an emergency via the network's intercom capabilities.

    Good Samaritan Aid

    Helping others in need is another useful function of the SOS button. If you witness an accident or other emergency and need help, click the button to alert the appropriate authorities.

    Roadside Help

    If you have a telematics system installed, you won't ever have to stress over breaking down and being unable to get back on the road again. The SOS button can contact assistance in an emergency, such as a flat tire, breakdown, or lack of gasoline. Help can swiftly locate you, thanks to GPS tracking devices.

    Car Checkups & Diagnostics

    With this function, you can get a monthly report on your car's condition through email. You can have a set of diagnostic checks performed and forwarded to your dealership whenever you see fit. The dealership and the customer benefit financially from this capacity's reduced likelihood of problems.

    Telematics Extras

    Locator Service for Gasoline Costs

    Saving money on gas can be accomplished with the help of a telematics system. With GPS, you may locate gas stations in your area, see their prices, and be guided there.

    In-Place Searching

    Apps like Yelp and Google Maps, used on smartphones, can also be a part of telematics. Find places to go in your area, like restaurants, hotels, shopping centres, bars, and more, complete with user reviews.

    News Flashes

    Installing a news or weather app on your telematics system is viable. The news channel of your choice can be selected automatically, and it works well with satellite radio.

    Streaming Media

    Your telematics system may have an app that allows you to stream music from services like Pandora, even if your car doesn't have Bluetooth capability.

    SMS Display

    The distraction caused by checking one's phone or email while driving can be eliminated if these items are hidden from view. A telematics system can read messages and emails aloud, and a typed reply can be sent if desired. Not all cars are equipped with the option to show text in addition to playing sounds.

    Crash Notification Improvement (E-ACN)

    By analysing sensor data, E-ACN systems may determine how severely a vehicle has been damaged and whether or not passengers are likely to sustain life-threatening injuries. Alerting passengers to the need for caution and quickly bringing medical help to the site can prevent further injury or loss of life.


    Tele (communications) and informatics (computers) come together to generate the term telematics (computers and their use). The term "Internet of Things" (IoT) describes the practice of relying on computer networks to collect data from and send it to devices located in different locations. Telematics enables the storing, transmitting, and receiving of data for the purpose of remote control of moving things, most notably vehicles. 17% of small fleets and 47% of bigger fleets use it, with this being the key motive for implementing telematics. The benefits of telematics in terms of security, efficiency, and economy are driving its broad adoption. Telematics solutions are being adopted by businesses as a viable method to enhance fleet management.

    Telematics solutions allow fleet managers to keep tabs on their employees in case of an emergency, track and compare how their drivers are using company vehicles, cut down on fuel and insurance costs, enhance vehicle maintenance, and increase asset recovery rates. Insurance premiums can be lowered, fuel costs can be cut, and fleet efficiency may be improved, all thanks to telematics-enabled fleet management. In addition, lone employee duress devices let those who are in risky situations while on their own send discreet alarms for aid. Fleet managers can schedule maintenance and prevent expensive problems from escalating in severity using the real-time data provided by mileage tracking. With the help of telematics, fleet managers can gain insight into important metrics, including driver behaviour, working hours, and travel itineraries.

    It has been shown to cut fleet accidents by 84% and increase safe driving behaviours by 50%. In the past, data collection was limited to on-board computers and telematics devices; however, with the development of new technologies, it is now possible to combine the information gathered by your phone or vehicle with external data such as weather alerts or information from various cameras or tachographs. Users have access to information, can export it, and use it to create reports that are vital to the organisation, such as a list of the top ten drivers in terms of score or the number of accidents caused by reckless driving. When drivers agree to share their telemetry data with insurance firms, they might receive annual rate cuts of up to 30 per cent. Telematics systems can alert authorities to an accident, provide assistance in the event of an emergency, provide roadside assistance, do diagnostics on the vehicle, and even provide good Samaritan assistance.

    In the event of an accident, auto-collision notification can notify drivers, and the emergency hotline can call rescue personnel. In the event of a breakdown, flat tyre, or low gas tank, roadside assistance can get in touch with the proper authorities. Assistance from Good Samaritans can benefit those in need. Every month, the experts at Vehicle Checkups & Diagnostics will send you an email detailing your vehicle's health. A telematics system can help you save money on petrol, find gas stations nearby, conduct local searches, get breaking news alerts, view your text messages, play your music, and even improve your crash notifications. It can also be used to warn travellers to take extra precautions and bring emergency medical services to the scene as soon as possible, so reducing the likelihood of additional casualties.

    Content Summary

    • Internet of Things (IoT) is the storage, reception, and transmission of data to far-flung objects through a network using communication and information technologies.
    • Telematics incorporates global positioning system (GPS) technologies with mobile device capabilities to enable the storage, transmission, or reception of data for the purpose of controlling far-off objects, most notably moving autos.
    • The term "telematics" is typically reserved for the automotive sector due to the wide range of applications for the technology in vehicles.
    • According to a number of surveys, "finding autos" is the most common reason for an organisation to adopt telematics.
    • While just 17% of small fleets use telematics, this number increases to 47% for bigger fleets (10-49 vehicles) and 56% for larger fleets (50+ cars/vans).
    • Telematics has become increasingly affordable in recent years, leading to broad adoption by fleets.
    • Not surprisingly, it's already being used by a third of fleets.
    • Intriguingly, most fleets listed the top reasons for utilising telematics, suggesting that there is no single reason why businesses decide to utilise the technology.
    • Instead, the benefits of telematics in terms of security, economy, and productivity are driving the wider use of technology.
    • Telematics solutions are being adopted by businesses as a viable method to enhance fleet management.
    • The use of telematics systems has various advantages, such as increased worker security and lower operational expenses.
    • There has been a rise in interest in implementing telematics as a means to track performance better and identify areas for improvement.
    • We'll take a closer look at the improvements so you can see what they mean for your business:
    • In the event of an emergency, it is vital that fleet managers be able to check on their employees quickly.
    • In order to get important alarm information to the right people, a telematics system can easily interact with the rest of an organization's IT infrastructure.
    • By minimising the overall utilisation of your fleet, telematics can help you save money on gas.
    • Monitoring employee driving behaviour can help businesses discover the causes of their fleet's high running costs and inefficiency.
    • Businesses with non-powered assets that self-insure or improve the likelihood of asset recovery to minimise insurance rates and excess have increased their adoption of telematics devices in recent years.
    • Self-insuring with non-powered asset tracking can raise the likelihood of a rapid recovery while decreasing associated costs, thus some organisations choose to do so rather than pay for insurance.
    • Yet, these costs can be avoided or much reduced with preventative maintenance.
    • Businesses can save as much as 30 per cent on maintenance expenditures by using telematics to perform proactive maintenance on their fleets.
    • Checking the tyre pressure once a month and completing other preventative maintenance might improve gas mileage by 3 per cent.
    • Preventative maintenance not only saves time but also keeps drivers and passengers safer.
    • The information gathered by a telematics system is invaluable to fleet management.
    • By keeping track of things like driver behaviour, driver hours, and route details, a feedback mechanism facilitates improvement and expansion within the company.
    • Managers of fleets of vehicles aren't the only ones who have come to see gamification's value as a tool for increasing morale and productivity among workers.
    • Businesses can incentivize safer driving and help workers better align their goals with the companies by accumulating statistics on fleet drivers and grading them.
    • Research shows that fleet safety can be improved by 50% with the help of gamification and that the number of accidents may be reduced by 84%.
    • Data collection in the field of telematics formerly relied mainly on telematics devices and in-vehicle computers (OBDI and OBDII).
    • The increasing prevalence of mobile phones, especially smartphones, has allowed for the integration of previously separate data sets, such as those pertaining to vehicle breakdowns, engine details, and fuel efficiency, with those pertaining to our location, driving behaviour (including braking, accelerating, and exceeding speed limits), and mileage.
    • Your phone and the car's sensors will collect data, which will subsequently be transferred to specialised cloud-based systems for analysis.
    • This link allows for the merging of information from multiple sources, including but not limited to weather alerts and footage from various cameras and tachographs, with the information stored on your phone or in your vehicle.
    • Drivers who are prepared to share their telemetry data might receive annual rate cuts of up to 30 percent from some insurance providers.
    • By monitoring factors like usage patterns, speeds, and other indicators of unsafe driving, insurance companies can rapidly discern whose policyholders present the biggest risk and aim their advertising towards the safest possible drivers.
    • The most basic plans for most telematics services offer similar features.
    • Telematics-enabled car owners can relax in the case of an accident, as they will be notified as soon as help is on the way.
    • Telematics can detect the collision and instantly notify the authorities.
    • The antenna provides a connection to the central office because its signal is typically stronger than that of a mobile phone.
    • In the event of an unrelated emergency, the "SOS" button on a telematics system can be used.
    • Using the intercom features of the network, you can immediately get in touch with rescue personnel.
    • The SOS button can also be used to aid those around you who are in trouble.
    • If you are at the scene of an accident or other emergency and require assistance, press the button.
    • Having a telematics system installed eliminates the danger of breaking down on the side of the road.
    • If you have a flat tyre, break down, or run out of gas, you can call for help with the SOS button.
    • GPS trackers allow rescuers to zero in on your whereabouts quickly.
    • With this feature, your car's status will be sent to you through email once a month.
    • You can send in for a diagnostic check at any time you choose, and the results will be sent to your dealership.
    • Both the dealership and the customer save money thanks to the decreased chance of difficulties caused by this capacity.
    • A telematics system can help drivers reduce their fuel costs.
    • With a global positioning system (GPS), you may look up the locations and pricing of nearby gas stations.
    • Smartphone applications like Yelp and Google Maps can also be considered a part of telematics.
    • Discover local businesses, including restaurants, hotels, shopping malls, bars, and more, all rated and reviewed by actual customers.
    • It is possible to add a weather or news app to your telematics system.
    • Automatically tune into the news station of your choice; compatible with satellite radio.
    • Even if your car doesn't have Bluetooth, you may be able to use an app on your telematics system to stream music from services like Pandora.
    • Messages and emails can be read aloud by a telematics system, and a typed response can be sent back if needed.
    • Sensor data collected by E-ACN devices could help assess how badly a car has been hit and whether or not its occupants have suffered life-threatening injuries.
    • Preventing further injury or loss of life can be achieved by raising awareness among passengers and rushing medical aid to the scene.
    Scroll to Top