OVL Lease Blog

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What is telematics? 

31/07/2018

What is telematics? 

Telematic systems gather and record driving data from your vehicles and share this data for analysis.  Telematics data can reveal driving habits that are costing your business – both in financial terms and with risk to drivers. 

Vehicles can be fitted with an on-board device that tracks location via GPS and records information on things such as braking, acceleration, maximum speed, journey time and out of hours usage. Some modern vehicles have telematics capabilities built in, negating the need for separate devices. 

Benefits for fleet managers

As mentioned above fleet managers can benefit from greater intelligence on what is costing their businesses – from fuel costs to time management and safety issues, telematics gives great insights. 

Specifics such as journey times can be tracked and information can be used to plan more efficient routes. Petrol stations can be logged in terms of expense (We all know the price of fuel can vary hugely) and telematics can even be used to identify recurrent mechanical problems or links between driver behaviour and excessive tyre wear. 

It is worth noting that insurance companies often offer discounts for vehicles fitted with telematic devices. 

Telematics can be particularly useful if businesses are considering adding electric vehicles to their fleet. For example, an analysis of the typical range a vehicle drives within a day and where charging points are located can be used to assess whether regular journeys are suitable for a pure electric or plug in hybrid vehicle. 

Summary of benefits:

  • Fuel savings
  • Cutting maintenance costs 
    Reduced insurance premiums 
  • Improved driver safety. 

Advice for fleet managers 

As with any product or service, do your research. There are many options available on the market and there is no point paying for extras that will not be used. 

Also consider how you are going to use the data. There is no point installing telematics unless the data provided is acted upon. Think about how you will analyse and act on the data, perhaps through internal communications, driver training and education. 

If data reveals that an employee is driving dangerously but no action is taken to prevent this, the organisation could be held partially liable if the driver is then involved in an accident.