Telematics software

Telematics System Challenges & How To Overcome Them

Telematics systems merge GPS, onboard diagnostics, and wireless communication to derive considerable benefits for fleet management and asset tracking.

But like most technology, these systems have their own set of challenges to provide reliable data collection and transmission because of them being prone to various kinds of reliability issues.

In this article, we will be discussing how your business can overcome these challenges and use your telematics system to the best of its ability.

 

Telematics system challenges

Here are some common challenges associated with telematics software.

Telematics hardware failure

Environmental factors such as adverse weather conditions, vibrations, and electrical issues may cause malfunctioning of telematics devices, including GPS receivers and diagnostic sensors.

For example, extremely high temperatures in summer or freezing conditions in winter can degrade performance in these devices, thereby causing loss of data reliability or even total system crashes.

Alongside this, the constant vibration from either road conditions or heavy usage can affect the sensitive components inside telematics hardware and make it prone to failure.

Cellular telematics network connectivity

Cellular network connectivity is another common challenge in telematics systems.

Telematics information normally travels via cellular networks, but in unpopulous areas, this turns into spotty coverage. In cities and towns, interference from a multitude of buildings and infrastructure causes poor signal quality, leading to difficulty in transmitting data from devices.

This will result in lost or late data transmissions, affecting the timeliness and accuracy of the information used for fleet management.

Power supply issues

Telematics devices depend on constant power from the battery of the vehicle. A weakening battery or improper connection can prevent the flow of power to the device and make the gathering and transmitting of data inconsistent.

In some instances, fluctuations in power make devices shut down and lose contact with the network, thus leading to a loss of data. Because many telematics systems are designed to collect data in real time, any disruption in service can have a great impact on solution effectiveness.

Telematics software bugs and glitches

Even state-of-the-art telematics systems are prone to software bugs and other glitches. These glitches could result in erroneous data collected or processed, reports with inaccuracies, or malfunctioning systems.

Sometimes, software bugs lead to the collapse of the entire telematics platform, therefore resulting in wasted time and loss of important data. These kinds of glitches undermine the general reliability of the system, making it highly critical that they are addressed immediately before they manifest themselves.

Cyber threats for telematics

As vehicles and fleets become increasingly connected, telematics systems are consistently seen as more hackable, in which hackers may aim to obtain sensitive information and manipulate the system or even take control of on-road vehicles.

A data breach could result in data loss, theft, or unauthorised vehicle usage, resulting in significant business and fleet operator risks. As telematics systems continue to evolve, so does the potential impact of a cyberattack, strengthening the need for cybersecurity.

This fleet crime article discusses key statistics as to why you need security for your telematics systems.

 

Telematics strategies to overcome these challenges

Here’s how you can prevent these challenges before they happen.

Invest in durable telematics hardware

To deal with the risk of hardware malfunctioning, you should invest in telematics devices designed to be rugged, durable, and hence better adapted to the most extreme environmental conditions.

Our telematics services can greatly reduce the possibility of malfunction because the devices are specified to resist extreme temperatures, heavy vibrations, and exposure to the elements.

Extra protection may also be afforded by devices offering extended warranties against failure, usually quickly resolving any hardware failures.

Prioritise cellular connectivity

In an effort to combat issues that seem to be occasioned by cellular connectivity, it’s important that a telematics provider be chosen with strong partnerships across multiple cellular networks such as Fuel Card Services.

This will ensure dependable coverage for your telematics devices within your operating areas, including remote and rural areas. In addition, you should seek out a system that allows multi-network compatibility; with this feature, devices automatically switch between carriers for the best possible signal strength and reduce the disruption in data transmission.

Guarantee a continuous and secure power supply for your telematics system

To prevent the possibility of any disruption, it is quite essential to ensure that power is supplied not only continuously, but also securely.

Telematics devices should be installed appropriately, having secure connections with the vehicle battery for continuous power. It is worth noting the units which provide either backup power sources or low-power modes can further the time of uptime during power fluctuations or when the vehicle battery is low.

Learn more about our fleet management software.

Regular telematics software updates

The implementation of regular software updates will go a long way in mitigating some of the risks associated with software bugs and glitches. The telematics provider should put in place a system whereby timely updates are affected both on the telematics devices and the management platform.

Most updates are bug fixes, often adding performance enhancements and security patches that help maintain the system’s reliability and reduce the chances of errors or malfunction.

Strengthen cybersecurity measures

Probably the most important aspect of telematics system reliability is cybersecurity. Telematics data should be transferred via secure channels, applying strong encryption algorithms.

That means that even if the data is intercepted, it will be unreadable. Telematics providers must keep assessing their systems for vulnerabilities and patch them on time. Then, severe access control can be provided using multilevel authentication and role-based user access.

Proactive fleet maintenance telematics

Preventing issues in both hardware and software requires proactive maintenance. Check-ups and regular maintenance schedules allow for the identification and fixing of potential problems before they lead to system failures.

This consists of cleaning and checking devices, wear and tear assessments, and updating software in order to keep all telematics devices at peak performance.

At Fuel Card Services, our telematics specialists can provide telematics maintenance from the very moment your devices are installed.

Telematics data redundancy solution

The main reasons for ensuring the integrity of the system include data redundancy.

In this case, the implementation of solutions that store data both on the telematics device itself and on secondary servers ensures that, in the event of a failure in the transmission or any other problem, the entire data loss can be avoided by the business.

Critical data remains recoverable even when some devices or connections are disrupted for the time being.

Secure communication channels

Encryption is critical in making sure that any transmission between vehicles, telematics devices, and the cloud platform is entirely non-readable for cybersecurity threats.

Encryption scrambles information that is transmitted, making it unreadable by hackers. Even if data is intercepted, it cannot be used to their advantage.

IDS/IPS

These detection and prevention systems should be embedded in all telematics systems for active monitoring of any network traffic that may appear suspicious.

These systems can swiftly detect any potential threats and block them before they affect the network. They are also useful for periodic testing, which involves simulated cyberattacks, to find loopholes in the system for early resolution before malicious actors can take advantage of them.

Telematics cybersecurity education for users

User education is a very critical component in minimising risks in cybersecurity. Employees and fleet operators should be trained in cybersecurity best practices, such as using strong passwords, not clicking on suspicious links or attachments, and identifying phishing emails.

A positive cybersecurity culture will facilitate businesses being less likely to have human error result in a breach.

Stay compliant with telematics regulations

Your telematics system has to be cybersecurity-compliant.

Not only does being on par with the latest legal developments protect sensitive data but also it gives weight to a business that takes data security seriously.

Compliance with regulations like the GDPR or standards specific to your industry adds more layers of protection to your telematics system.

 

Overcome fleet management system challenges with Fuel Card Services

Business owners addressing these challenges with thoughtful strategies can further the reliability and security of their telematics systems, thus ensuring smooth operations and better fleet management outcomes. Discover our fleet telematics systems and contact our friendly team today.

How Does Our Telematics System Service Work?

In today’s fast-paced business environment, managing a fleet of vehicles efficiently is essential for reducing costs, improving safety, and enhancing overall productivity.

Our Tele-Gence Telematics service offers a comprehensive solution for tracking all vehicles and assets 24/7.

With advanced tracking technology, real-time alerts, and detailed reporting, Tele-Gence provides businesses with the tools to manage their fleet securely and efficiently.

Learn more about our telematics packages here.

Why your fleet needs telematics

This section will discuss why telematics are crucial for fleet car management.

1. Improved fleet security

Vehicle theft can be a major concern for fleet owners. The ability to track your vehicles in real-time offers peace of mind, knowing that you’ll be immediately alerted if your vehicles are moved outside of designated hours or if their trackers are tampered with.

Tele-Gence’s advanced tracking system includes features like geofencing, which allows you to create virtual boundaries around your vehicles or assets. You will get a notification should they move out of these pre-set areas, which secures them against unauthorised use or theft.

Besides this, our asset trackers are designed to be hidden and tamper-proof to prevent thieves from even locating and removing them before the theft of a vehicle or asset.

Discover why this is so important in our UK fleet crime article.

2. Improved fleet visibility

Tele-Gence always ensures visibility regarding your fleet. Our telematics system lets you see where your vehicles are, what they are doing, and which driver is closest to a new job or location.

Such insight is vital in optimising route planning, reducing downtime, and making sure deliveries or service calls are on time. It will enable you to track all your vehicles from one central platform and save you from wasting time and energy checking each of them individually.

If you want to find out more about vehicle tracking, view our fleet tracking services.

3. Easy fuel card integration

For those already utilising fuel cards, seamless integration is assured with Tele-Gence.

This allows the fleet manager to receive alerts on fuel fraud and actual miles per gallon reports for potential issues like inefficient driving habits or underperforming vehicles.

In addition, gaining accurate MPG reports is important for industry accreditations such as FORS, making it easier to maintain compliance and demonstrate your fleet’s environmental efficiency.

 

How Tele-Gence fleet telematics works

Tele-Gence’s telematics system is designed to be user-friendly and flexible, making it easy to integrate into your existing fleet operations. Here’s how it works:

1. Choose the right fleet system package

Tele-Gence offers multiple competitively priced packages to choose from, depending on what is best for your fleet and your budget. Whether you’re a sole trader with a van or a full-scale fleet, we have a solution for you.

2. Fleet tracker installation

Next, after choosing a suitable package, our engineers will pay a visit to your location for tracker installations in the vehicles. For added convenience, we also provide self-installations that let you install trackers at your own pace and according to your timing.

3. Track and monitor your fleet data

Once installed, you are ready to start monitoring your fleet through the Tele-Gence Online Portal.

The web-based platform includes location tracking in real-time, notifications regarding odd activities or behaviours, driver behaviour ratings, and comprehensive reporting.

An intuitive all-in-one device for having absolute control over the operations of your fleet for security enhancement, cost reduction, and efficiency maximisation.

 

Key features of Tele-Gence fleet telematics

The Tele-Gence platform offers a suite of features that ease the operational workload on fleet management and ensure more efficiency.

Some of these features include:

1. Real-time tracking of vehicle location

Using Tele-Gence, each vehicle in your fleet can be tracked in real-time. This feature is extremely valuable for delivery schedule management, dispatching of vehicles to the nearest job, and ensuring drivers are where they need to be.

2. Driver behaviour monitoring

Tele-Gence helps in tracking drivers’ behaviour through detailed scores that are factored by cases of speeding, harsh braking, cornering, and accelerating.

Through this feature, you can set thresholds of tolerance and track the performance scores across your fleet.

Driver behaviour monitoring enhances safety and will hence help you to understand where drivers need to adjust their performances to reduce fuel consumption and lower accident rates.

Still wondering how can efficient driving reduce fuel costs? Our blog can help.

3. Geofencing and alerts

Set geofencing virtual boundaries for your vehicles or assets. If any asset or vehicle moves out of these zones, you get an immediate alert.

The feature is particularly useful in delivery monitoring, ensuring the assets are not moved out of the designated areas, and preventing unauthorised after-hours use of vehicles.

4. Dashcam footage and incident monitoring

With Tele-Gence, you will be able to install connected dashcams in your fleet vehicles. These cameras capture visual evidence of incidents to help you understand exactly what took place during a collision or other event.

Whether it is an at-fault accident or a case of reckless driving, this footage from the dashcam will provide your business with irrefutable evidence that could protect your business and increase driver accountability.

5. Customisable reports and data insights for fleet system telematics

Tele-Gence has designed a configurable suite of reports that can be delivered directly to your inbox on a scheduled basis.

From fuel usage and mileage to driver performance and maintenance reports, the platform allows detailed analysis of your fleet data.

Analysing these insights should provide the ability to realize trends that could help improve operational efficiencies and reduce unnecessary costs.

 

Integration with fuel cards

For companies currently using fuel cards, Tele-Gence can easily integrate to provide further and more sophisticated insights into fuel usage. The integration allows you to:

Fuel fraud alerts

Receive notifications if the fuel card is used in a location that does not match the GPS coordinates of the vehicle for fraud detection and prevention in fuel.

MPG reporting

Get correct reports regarding your fleet’s fuel efficiency. This data is a real treasure in finding the worst-performing vehicles to improve or alter driving behaviour.

 

Solutions tailored for each business

Tele-Gence knows that no two fleets are identical. That’s why we provide customisable packages, which offer much more than mere vehicle tracking.

Whether you want hardwired trackers, self-installation options, or cameras, we tailor these into a solution that fits your particular business needs.

Be it expensive assets or employee behaviour, Tele-Gence brings total visibility and control.

Protect and optimise your fleet with a Fuel Card Services telematics system

Contact us today and learn more about how Tele-Gence can transform your fleet management.

Sustainable Transport With Telematics

In today’s business landscape, the significance of sustainability has evolved from a mere trend to a fundamental component of strategic planning, especially for companies managing fleets of any scale.

As global industries increasingly acknowledge their environmental responsibilities, fleet telematics has emerged as a vital tool in shaping the future of sustainable fleet management.

This detailed exploration outlines the multifaceted benefits of fleet telematics, emphasising its role in fostering a more sustainable future for businesses.

What is sustainable transport through telematics?

Fleet telematics plays a crucial role in minimising the environmental impact of fleet operations.

With growing global attention to climate change, organisations utilising fleet vehicles (a technology that uses GPS tracking and onboard diagnostics (OBD) to monitor a fleet of vehicles in real-time) are challenged to implement technologies and practices that effectively reduce their carbon footprint.

Read more about what telematics is.

Fuel Card Services telematics solutions provide actionable insights and innovative tools that help fleets comply with environmental regulations while promoting sustainable practices.

Moreover, the integration of artificial intelligence within these telematics systems enhances predictive capabilities, further supporting sustainability initiatives.

Fleet telematics and fuel efficiency

One of the most significant advantages of fleet telematics is its ability to optimise fuel consumption and thereby decrease carbon emissions.

By utilising advanced routing algorithms, telematics systems ensure that vehicles are directed along the most efficient routes, which significantly reduces unnecessary travel distances. This optimisation translates to lower fuel usage and a decrease in harmful emissions.

Reduced car idling

Additionally, telematics can identify and address excessive idling, an often-overlooked contributor to fuel waste and emissions.

By analysing driving patterns, fleet managers can implement programs that reward drivers for adopting more fuel-efficient habits, ultimately promoting a culture of sustainability within the organisation.

Enhancing driver behaviour for sustainable transport

Telematics platforms provide fleet managers with the tools necessary to monitor driver behaviour closely.

Reducing car speeding, aggressive acceleration & hard braking

By assessing driving actions such as speeding, aggressive acceleration, and harsh braking, fleet managers can identify areas for improvement.

Utilising this data, companies can develop personalised training programs aimed at enhancing driver performance. This proactive approach not only leads to safer driving practices but also contributes to a reduction in fuel consumption and CO2 emissions, reinforcing the fleet’s commitment to environmental sustainability.

Promoting effective fleet servicing

Regular fleet maintenance is essential for ensuring that vehicles operate efficiently and remain environmentally friendly throughout their operational lifespan.

Telemetry systems

Telemetry systems facilitate predictive maintenance by analysing vehicle performance data and anticipating maintenance needs before they become critical. This proactive strategy helps keep vehicles running at optimal efficiency, extending their lifespan and minimising environmental impact.

By ensuring that all vehicles are maintained properly, organisations can further reduce their carbon footprint and contribute positively to environmental goals.

 

Facilitating the transition to sustainable fuels

Transitioning to alternative fuels is a complex and often challenging endeavour that requires meticulous planning and execution. Fleet telematics can provide critical insights that assist in developing effective energy transition strategies tailored to an organisation’s unique operational dynamics.

By analysing usage patterns across various vehicles in the fleet, businesses can determine which vehicles are best suited for transitioning to alternative energy sources, identify the most appropriate types of fuel for their operations, and understand the necessary infrastructure changes required for a successful transition.

Boosting business reputation and marketability with sustainable transportation

Adopting sustainable fleet management practices through telematics can significantly enhance a company’s market reputation.

As consumers increasingly prioritise sustainability in their purchasing decisions, organisations that commit to eco-friendly practices stand out in the marketplace.

This enhanced reputation can attract new clients and top talent, further solidifying the company’s position as a leader in sustainable business practices.

Ensuring scalability and future preparedness with a sustainable car

As businesses grow and evolve, their sustainable fleet management practices must adapt accordingly. Fleet telematics provides the necessary insights and flexibility to scale operations sustainably.

By leveraging data-driven insights, organisations can prepare for current challenges and future regulatory requirements, ensuring long-term success and relevance in an ever-changing market.

The ability to integrate new technologies, develop improved workflows, and foster innovation positions businesses for continued growth while maintaining a commitment to sustainability.

 

Sustainable transport telematics with Fuel Card Services

Fleet telematics represents a powerful convergence of technology and sustainability, underscoring its vital role in the future of sustainable fleet management. The environmental and economic benefits it offers are integral to fostering responsible business practices.

At Fuel Card Services, we are not just observers in this movement; we are leading the charge towards a sustainable future through sustainable transport telematics.

Discover first-hand how the right technology can propel your fleet toward a sustainable, profitable, and environmentally responsible future. For further information or to tailor a custom solution, please reach out to us today.

Camera recording from inside vehicle

What Is Black Box Insurance For Fleet Vehicles?

Black box insurance, a type of telematics insurance, is an innovative type of fleet insurance that uses a small device installed in each vehicle to monitor and record key driving metrics. 

This device, often referred to as a “black box,” captures detailed data about how, when, and where vehicles in your fleet are driven. The collected information is analysed by the insurer to assess driving behaviour, which can influence renewal premiums and help with fleet management tasks such as Accident Alerts and Theft Recovery.

This type of insurance allows fleet managers to track driver performance and vehicle use in real time, encouraging safer and more efficient driving while offering the potential for cost savings. By tailoring insurance premiums based on actual driving data rather than general fleet statistics, black box insurance offers a more personalised, data-driven approach to managing fleet risks.

What is a black box?

When a fleet manager opts for black box insurance, the insurer arranges for the installation of a telematics device in each fleet vehicle. This black box is fitted discreetly and includes a SIM card that enables real-time transmission of driving data to the insurer’s database. The device operates much like a mobile phone, using GPS and motion sensors to continuously gather data as the vehicle is driven.

This data can include metrics such as speed, location, time of day, driving conditions, and driver behaviour such as harsh braking, acceleration, and idling time. Fleet managers can then access this information through an online portal, giving them a comprehensive view of their drivers’ habits and vehicle performance.

The benefits of this system extend beyond simply lowering insurance costs. The data collected can be used to identify areas for improvement in driver behaviour, reduce fuel consumption, prevent wear and tear on vehicles, and even ensure that vehicles are not being misused or driven recklessly.

What does a black box look like in a fleet vehicle? 

A black box is a small, discreet device typically about the size of a smartphone. It is usually black or dark-coloured and made of durable plastic. 

Where is a black box fitted?

Installed out of sight, often under the dashboard or near the engine, it contains sensors, GPS technology, and accelerometers that monitor and record driving behaviours such as speed, braking, and location. 

How long do you have a black box for?

 For businesses using black boxes in fleet vehicles, the device is typically kept in place for as long as the vehicle is in operation within the fleet, as it helps with monitoring driver performance and vehicle usage.

How much is a black box?

Costs for installation and ongoing services can vary based on fleet size and specific requirements. 

For detailed pricing and installation options, it’s best to consult directly with Fuel Card Services for a free telematics quote

 

What does a black box do? Black box components

The black box installed in fleet vehicles includes several crucial elements that work together to provide a detailed overview of driving behaviour:

Black box GPS system

The Global Positioning System tracks the vehicle’s location and logs information such as the time of day, the type of roads being driven on, and how long the vehicle has been in use. This data is essential for understanding driving patterns, especially for long-haul or delivery fleets.

Motion car sensor (accelerometer)

This sensor monitors sudden movements or impacts, such as harsh braking, aggressive acceleration, or collisions. It provides critical data on driving behaviour and accident analysis, helping to improve safety and reduce the risk of accidents.

SIM Card

The SIM card transmits the data collected by the black box to the insurance company’s servers, allowing fleet managers and insurers to access real-time or historical data for analysis. It ensures that the data is updated continuously without manual intervention.

Telematics software

The software analyses the data collected by the black box, converting it into actionable insights that can be used for fleet management. It calculates driving scores, tracks vehicle activity, and flags any unsafe driving behaviours or irregularities.

 

What data does the black box record?

The black box collects a broad range of data points that are critical for assessing driving behaviour and optimising fleet performance. These include:

Time of day

Records the exact times when each vehicle is in use, helping to identify when vehicles are being driven during potentially high-risk times, such as late at night or during rush hours.

Black box tracking speed

Monitors the speed at which the vehicle is driven, comparing it to speed limits on different road types. Speeding violations can be flagged for further action.

Acceleration and braking with a black box

Tracks how smoothly or aggressively the driver accelerates and brakes. Harsh acceleration and braking can indicate unsafe driving habits, increasing wear on the vehicle and reducing fuel efficiency.

Long journey breaks with black box insurance

Detects whether drivers take adequate breaks during long trips, which is important for both driver safety and regulatory compliance in certain industries (e.g., trucking and logistics).

Motorway and total mileage with a black box

Logs how many miles each vehicle travels overall and specifically on motorways, helping fleet managers track vehicle usage and plan for maintenance.

Number of black box journeys

Keeps track of how often vehicles are used, which can help identify overuse or underuse of specific vehicles in the fleet.

 

Benefits of black box insurance for fleet businesses

Black box insurance offers several critical benefits to fleet operators, enabling them to optimise their operations, improve safety, and reduce costs. Below are some of the key advantages:

How much does a black box reduce insurance?

Black box insurance helps fleet managers save money in multiple ways. Firstly, by monitoring actual driving behaviour, insurers can offer more personalised renewal quotes, rewarding safer drivers with lower premiums. Instead of basing costs on the general risk profile of a fleet, the insurance premium is tailored to the real-world performance of each driver.

Additionally, safe driving behaviours, such as avoiding harsh braking and maintaining a steady speed, lead to less fuel consumption and reduced wear and tear on vehicles. This further reduces operational costs and extends the lifespan of fleet vehicles.

Enhanced safety with a black box

The black box collects detailed data about driving habits, enabling fleet managers to identify unsafe behaviours such as speeding, tailgating, or sharp cornering. This information can be used to implement driver training programs or other interventions to improve safety across the fleet.

In the event of an accident, the black box sends an alert to the insurer, who may contact the driver or emergency services depending on the severity of the incident. This rapid response system improves driver safety and can even be life-saving in serious accidents.

Theft recovery with a black box

Black box insurance provides an additional layer of security by acting as a tracking device. If a vehicle is stolen, the GPS functionality of the black box allows insurers and fleet managers to track its location in real time. This feature significantly increases the chances of recovering stolen vehicles quickly, minimising downtime and losses.

Efficient claims management with black box insurance

In the event of an accident, the data collected by the black box can be invaluable for processing claims. It provides precise details about what occurred before, during, and after the accident, including the speed of the vehicle, the force of any impact, and whether the driver was adhering to traffic laws. This data helps insurers accurately assess claims, reducing the chances of disputes and ensuring quicker payouts.

Black box compliance 

For industries that have strict regulations around driving hours and rest breaks, such as logistics and trucking, black box insurance helps fleet operators ensure compliance. The data collected on driving hours and breaks makes it easier to adhere to legal requirements, reducing the risk of fines or penalties.

 

How to access black box data

Fleet managers can view a summary of the data collected by the black box through a dedicated online portal. This portal provides detailed insights into driving metrics and overall vehicle performance, including:

  • Speed and acceleration patterns
  • Number of miles driven
  • Driving scores based on safe driving criteria
  • Time of day usage
  • Breaks taken during long journeys

This data empowers fleet managers to make informed decisions about driver performance, vehicle maintenance, and overall fleet operations.

 

Black box installation and performance

The black box is installed by a qualified engineer at the fleet’s operating location, such as a depot or place of business. The installation is quick and does not interfere with the vehicle’s performance or any electrical components. Fleet managers are typically required to have the black box fitted within a specified period after purchasing the insurance policy, though the vehicles are insured immediately upon policy activation.

Where can I buy a black box for my car or fleet business?

Getting black box insurance for your fleet is a simple process. You can obtain an instant quote online or through your insurance provider. Once the black box is installed in each vehicle, you can begin benefiting from safer driving, optimised fuel use, theft protection, and more personalised insurance premiums.

By investing in black box insurance, fleet businesses can improve safety standards, reduce costs, and ensure they are making data-driven decisions for their fleet operations.

You can also get in touch with our telematics team at Fuel Card Services to find out if a telematics and fleet management solution could be right for your business.

UK Fleets Lose £1,900 per Year to Crime: New Survey Reveals Underinvestment in Security

New research from Fuel Card Services takes a look under the bonnet at exactly how UK fleets have been impacted by crime over 12 months, revealing interesting insights into the ratio of security spending to crime-induced losses.

The March 2024 survey gathered data from 250 fleet managers across the UK, with fleets ranging from 1-1000+ vehicles and containing a full spectrum of fleet vehicle types including LCVs, HGVs, buses, vans, and cars. Here’s exactly what we found.

The majority of UK fleets are plagued by crime

Crime rates are on the rise with more and more fleets experiencing criminal interference including theft and vandalism. In total, 64% of fleets reported that they had been subject to some form of criminal damage in the 12 months since March 2023.

The most common instances of crime include vehicle damage, and theft of assets. Fleets of all shapes and sizes, and across a variety of industries were subject to criminal acts – which suggests that security is imperative regardless of the nature of your operations.

But what exactly was the real term cost of crime?

£1,900 per year: The staggering cost of fleet crime

Across the entire survey sample, the cost of crime per fleet was reportedly £1,900 over the past year, which is a significant sum of money and suggestive of widespread damage to fleet assets.

Interestingly, the average cost of crime for small-medium sized fleets comprising 11-50 vehicles was reported at over £1,700 – a figure that could significantly affect cash flow and disrupt operations. In cases of theft, there are often hidden costs beyond the raw impact of crime, for example if fleets are forced to make insurance claims that affect premiums.

Almost 60% of respondents surveyed lost upwards of £1000 in cases of theft and damage, which will have undoubtedly been felt hardest by smaller fleets. What measures, then, are being taken to prevent crime and invest in security?

Underprepared and underfunded: Fleets’ security spending falls short

Whilst you might expect the cost of security investments to vastly outweigh the real-term impact of crime, this turned out not to be the case. On average, commercial fleets surveyed reported spending just £3,100 on security investments during the 12 months since March 2023.

Over fifty fleets surveyed comprised 51-100 company vehicles, yet the average investment into security was just £1,700 for this sample group. Why, though, are fleets underspending on vital security measures?

One theory is that the cost of living has drastically impacted the fleet security landscape. It may account for an increase in theft, and make fleets reluctant to invest in security at the expense of operational cash flow – indicating a possible ‘can do without’ attitude from fleet managers.

Interestingly, one fleet of over 1001 vehicles reported investing less than £3 per vehicle on security measures over the 12 month period – suggesting fleets may be over-relying on existing infrastructure.

Key learnings from the study

It’s essential that fleets acknowledge the importance of being proactive in investing into fleet security to limit the cost of criminal damage, and set up for long-term success. One additional finding from the survey piece was that fleets with HGVs incurred the most costs compared with other vehicles, and so a poignant question for fleet managers to ask could be:

Does my security spending properly reflect the value of my fleet vehicles?

While this survey has helped shine a light on current thinking within UK fleets, it raises a lot of questions. Are fleet managers aware of how important it is to invest? Are they prioritising other expenses? And are budgets simply not big enough? In the short term, it could be worthwhile having these discussions and taking a step back to evaluate overall business priorities and expenditure.

At Fuel Card Services, we aim to support fleets with a comprehensive set of solutions that help improve security and reduce costs, such as advanced telematics systems that help you keep an eye on exactly where fleet vehicles are at all times. To find out more about how telematics could protect you against crime, speak to an expert today!

Learn more about our services.

 

Sample Data

The research was conducted by Censuswide with 250 fleet managers (18+) excluding sole traders between 08.03.2024 – 14.03.2024. Censuswide abide by and employ members of the Market Research Society which is based on the ESOMAR principles and are members of The British Polling Council.