The Benefits Of Telematics For Insurance
Insurance can often feel like an uphill battle, but vehicle telematics is a tool that is growing in prevalence in the insurance world for good reason.
Insurance can often feel like an uphill battle, but vehicle telematics is a tool that is growing in prevalence in the insurance world for good reason.
Simon Pavey
Website Marketing Manager
In this blog, we’ll examine telematics and how they can improve road users' safety - offering insurers peace of mind, and lowering drivers' premiums.
Telematics insurance is also known as black box insurance. Read our guide ‘What Is Black Box Insurance For Fleet Vehicles’ here.
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:
Speeding convictions and the resulting penalty points on your driving license can significantly increase your car insurance premiums, as insurers view drivers with such offences as higher risk.
Telematics can reduce this by alerting fleet managers when specific drivers are driving above the speed limit and allowing fleet managers to put these drivers through specific training programmes.
Generally, longer journeys and more frequent driving (higher mileage) increase your car insurance premium because the risk of accidents and claims rises with increased time on the road.
Telematics can help by providing the most efficient route, allowing fleet drivers to spend less time on the road and more time with customers.
Harsh braking, along with other risky driving habits, can lead to higher insurance premiums. It increases the risk of accidents and damages, potentially leading to more claims and higher payouts for insurance companies.
Telematics can reduce this by alerting fleet managers when specific drivers demonstrate risky driving behaviours and allowing fleet managers to put these drivers through specific training programmes.
Fuel consumption, or more accurately, the distance you drive (mileage), does affect car insurance premiums because insurers assess the risk of accidents based on how much time a vehicle is on the road. Higher mileage generally leads to higher premiums.
Telematics can provide the most efficient route, allowing fleet drivers to spend less time on the road and reduce fuel consumption.
Battery voltage and engine data from electric vehicles (EVs) are increasingly impacting insurance, particularly risk assessment, premium pricing, and claims management, as insurers leverage this data to better understand EV-specific risks and costs.
Telematics can provide the most efficient route, allowing fleet drivers to spend less time on the road and reducing time spent charging EV batteries.
Vehicle faults, especially those resulting in accidents, can significantly impact your car insurance by potentially leading to increased premiums or the loss of your no-claims discount.
Telematics cameras can record incidents, proving who was at fault. They can also automate fleet maintenance services to fix any issues with your fleet before they become more serious. Read our guide discussing why fleet dashcams are a must-have today.
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. This can be a key cost-saving aspect of a delivery fleet operation for fleets.
Telematics insurance uses the data collected by telematics devices to make decisions about drivers' risk levels.
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 determine a fair figure for the insurance cost. Less time on the road and safer driving will reduce these premiums, while more time on the roads and unsafe driver behaviour will increase them.
Whilst some drivers might consider telematics a too heavy-handed surveillance tactic, it actually has a host of valuable benefits for fleet drivers, managers, and insurance companies.
Here are a range of telematic benefits for your drivers.
For drivers, telematics can take some leg work off journey planning and maintaining their vehicles on the road. Regarding telematics for insurance, the benefits for fleet drivers might not seem so apparent, but there are plenty, such as efficient route planning leading to less time on the road
Insurance telematics encourages a higher level of driver safety and caution, making for safer roads.
However, in the case of an accident or mishap, gathering data on your journey can help clarify the cause and nature of said incident and help pinpoint which drivers may need specific training.
A good track record on your telematics devices could also support your career growth, facilitating trust and career development for those who drive safely and efficiently..
Here is a range of telematic advantages 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.
Looking to save money on fuel? Unlock fuel savings with Motia telematics.
Regarding telematics for insurance, fleet managers' most apparent benefit is saving money through monitoring performance. Efficient and safe drivers can be identified, and those needing improvement can be sought out equally.
All companies strive for a safe and efficient team, so those with a collective of fleet drivers upholding that standard will benefit from reduced insurance premiums.
The benefits of telematics insurance for insurers are 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's 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 estimate the chances of a driver getting into an accident or causing damage that requires insurance payouts and influence the decision about insurance premiums.
For fleet managers and insurers, Motia offers a range of telematics trackers to suit a variety of fleet vehicles. From asset trackers to hardwired and plug-in trackers, our telematic devices work with robust and easy-to-manage telematics software.
Motia Telematics is designed to help you improve the safety of your fleet and save money by tracking maintenance, repairs, and fuel consumption. With an accessible user interface, Telematics is flexible and fully customisable, making it a great choice regardless of your business type.
Start organising your fleet business today by reading our 10 benefits of using telematics for fleet management.
If you think Motia Telematics could be a good choice for your fleet, or if you are an insurer wanting to learn more about our telematics, contact our team today.
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