The Benefits of Telematics for Insurance
Written by: Simon Pavey, Last updated:30th November 2023
Insurance can often feel like an uphill battle, but vehicle telematics is a tool growing in prevalence in the insurance world and for good reason.
In this blog we’ll look at what telematics is and how they can increase the safety of road users, offering increased peace of mind to insurers and a better premium for drivers.
What is telematics?
Telematics devices use GPS technology and on-board diagnostics (OBD) to plot the asset’s movement on a map and gather other valuable vehicle data such as:
- Vehicle speed,
- Journey distance/time
- Harsh braking
- Fuel consumption
- Battery voltage and engine data
- Vehicle faults
This is a more efficient means of monitoring the health of fleet vehicles so that potentially dangerous or expensive faults can be corrected before accidents occur, and also more effective monitoring of driver behaviours is possible.
The end goal of telematics devices is to identify issues that impact efficiency, safety, and spending. For delivery fleets, this can be a key cost-saving aspect of a fleet operation. That’s why in this article, we’ll cover everything you need to know about how telematics is impacted by insurance – whether you’re looking to gain access to cheaper insurance, or as an insurer you’re keen to understand the potential upside.
What is telematics insurance?
Telematics based insurance uses the data collected by telematics devices to make decisions about the risk levels of drivers. Performance indicators collected by telematics boxes will demonstrate to insurance companies any points of concern in a driver’s technique and can equally prove outstanding safe driving too.
These factors will help insurance companies to come up with a fair figure for the cost of insurance.
What are the benefits of using telematics for insurance?
Whilst some drivers might see telematics to be too heavy handed a surveillance tactic, it actually has a host of valuable benefits for fleet drivers, managers, and insurance companies.
Benefits for drivers
For drivers, telematics can take some of leg work off journey planning and maintaining their vehicles on the road. When it comes to telematics for the purpose of insurance, the benefits for fleet drivers might not seem so apparent but there are plenty.
Insurance telematics encourage a higher level of driver safety and caution making for safer roads in general. However, in the case of an accident or mishap, having data gathered on your journey can help provide clarity on the cause and nature of said incident.
A good track record on your telematics devices could also support your career growth, facilitating trust and career development too.
Benefits for fleet managers
There’s no shortage of telematics benefits for fleet managers; the wide range of data gathered can support prompt fixing of issues, encourage more efficient journeys and fuel consumption, and save money accordingly.
When it comes to telematics for insurance, the most obvious benefits for fleet managers centre on saving money through monitoring performance. Efficient and safe drivers can be identified and those who need to improve can equally be sought out.
All companies strive for a safe and efficient team, so those who have a collective of fleet drivers upholding that standard will benefit from reduced insurance premiums.
Benefits for insurers
The benefits of telematics insurance for insurers are simply that it gives them a better understanding of who they are insuring and what level of risk they pose. The data tracked by insurance telematics can paint a clearer picture of the driver being insured, with comprehensive info such as how fast they tend to drive and how harshly they break. These are all factors that paint a picture of how safely someone drives.
With this information, insurers can get an idea of what the chances are that a driver will get into some sort of accident or cause damage that requires insurance pay-outs and influence the decision about insurance premiums.
Telematics from Fuel Card Services
For fleet managers and insurers, Fuel Card Services offer a range of telematics trackers to suit a variety of different fleet vehicles. From asset trackers to hardwired and plug in trackers, our telematic devices work with Tele-Gence software.
Tele-Gence is designed to help you improve the safety of your fleet and save money by staying on top of maintenance, repairs, and fuel consumption. With an accessible user interface, Tele-Gence is flexible and fully customisable making it a great choice regardless of your business type.
If you think Tele-Gence telematics could be a good choice of your fleet, or you’re an insurer wanting to learn more about our telematics, get in touch with our team today.back