The Benefits of Using Telematics

The use of telematics can help you reduce liability in the event of a claim

It’s no secret that managing a fleet of vehicles comes with a wide range of risks and added organisational costs. Considering the potential for road accidents, vehicle theft, employee injury or fatality, liability concerns and costly fuel consumption, company vehicles can certainly generate a hefty price tag. Nevertheless, your fleet—whether it be a couple cars or 50 lorries—also plays a major role in promoting organisational success.

With this in mind, it’s crucial for your transport organisation to utilise robust risk management measures to ensure fleet security, safety and fuel efficiency. And in an era of constantly evolving technology, employers across the transport industry have started to implement vehicle devices known as telematics to help reduce their numerous fleet risks. Review the following guidance to understand the basics of telematics software and the benefits that this technology can provide for your organisation.

What Is Telematics?

At a glance, telematics is a form of vehicle software that combines the features of telecommunications and informatics to help employers effectively manage and monitor their fleet. This software operates by connecting to your fleet’s sat-nav systems and radio frequency identification technology to track each vehicle’s location, movement, status and driving behaviour. Common data collected by vehicle telematics software includes:

  • Vehicle speed
  • Miles per gallon and fuel levels
  • Engine malfunctions and diagnostic issues
  • Driving behaviour (eg braking intensity or acceleration frequency)
  • Whether the ignition is on, doors are open or panic alarm has been activated
  • What gear is being used
  • Weight of the vehicle’s load

As a result, transport employers can utilise this data for the following purposes:

  • Monitoring vehicle stops, arrivals and deliveries
  • Determining vehicle routes
  • Communicating with drivers
  • Reviewing employee driving practices
  • Creating accurate vehicle data reports
  • Detecting vehicle maintenance concerns

Why Your Fleet Needs Telematics

Utilising telematics software can benefit your fleet by:

  • Reducing operational costs—Telematics software can help keep drivers updated on upcoming traffic concerns or road hazards, offer rerouting options and locate preferred petrol stations—all of which can contribute to maximum fuel efficiency and lowered operational costs.
  • Encouraging safe driving—Seeing as telematics software detects driving behaviour, employees will surely be even more motivated to follow safe driving practices and meet organisational standards. In addition, this technology will allow employees to better monitor their individual driving habits and detect flaws that they might not have realised otherwise.
  • Fostering employee engagement—Drivers spend the majority of their workday confined to a vehicle with minimal communication opportunities, which can be harmful to both their physical and mental health. By implementing telematics software in your fleet, drivers will have an increased ability to digitally communicate and interact with others (eg their supervisor, co-workers and dispatchers) regarding travel progress, road conditions, delivery requests or vehicle concerns.
  • Bolstering fleet security—Due to advanced tracking and communication features, telematics software can also help keep your fleet safe and secure in an emergency. For example, you can utilise telematics tracking to detect the location and route of any stolen vehicles—thus simplifying the vehicle recovery process. What’s more, many forms of telematics software allow you to implement advanced security features in each vehicle, that require the driver to enter a passcode before driving to reduce the risk of theft altogether. Apart from preventing theft, telematics software can also help drivers quickly alert the proper authorities and share their exact location in the event of an accident on the road.
  • Simplifying data collection—The Driver and Vehicle Standards Agency (DVSA) requires commercial drivers to keep an accurate record of their weekly working hours, break times and driving routes. By using telematics software within your fleet, drivers will be able to use an electronic record-keeping system to log their required information and maintain compliance with all DVSA regulations.
  • Ensuring vehicle maintenance—Telematics software is able to detect a wide range of vehicle breakdown or maintenance problems, such as engine issues or diagnostic concerns. From there, this technology is able to inform the driver of the problem and locate the nearest repair centre or garage. Also, telematics software can be programmed to inform drivers of routine maintenance requirements, such as an oil change, MOT test or tyre pressure check.
  • Securing affordable insurance—Above all, utilising telematics software within your fleet can lower your insurance costs. Indeed, implementing this technology will provide evidence to your insurer that you have effective measures in place to reduce fleet risks, thus increasing the likelihood of low-cost cover options. That being said, be sure to inform your broker if you decide to invest in telematics software.

If you’re looking for fleet insurance, please don’t to get in touch with us. Call us on 0333 202 3173 or complete our quote form and we’ll be in touch with you as soon as possible. We work closely with a telematics company and together, we work hard to try and lower your price through telematics and cameras. Get in touch with us for more information.

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