Just like any other kind of technology, vehicle telematics is constantly evolving. With every new advancement in technology, the applications and systems of telematics grow to be even more sophisticated for a better and more convenient use.

The technology behind vehicle telematics involves a lot of applications and systems; it implements the use of mobile communication, the Internet and Global Positioning System – all working together to make sure that vehicle data can be recorded, transmitted and read.

With new technology in mobile communication – in the form of smartphones, we find new possibilities have cropped up for telematics.

What are Smartphones

Smartphones are considered to be the high-end mobile phones that give the user access to various applications. They have the advanced ability to constantly stay connected, and are empowered by applications that the user can choose according to their daily needs.

The first few smartphones were used as PDAs (personal digital assistants) – being able to track schedules, store reports, send emails and involved basic functions that made it seem like you were carrying your entire office in your pocket. Web browsing, compact digital cameras and video recorders are among the many features of a smartphone.

In relation to vehicle telematics, smartphones have built in GPS navigation devices that can be utilized.

Smartphones and Vehicle Telematics

With the collision of smartphones and vehicle telematics, users and fleet companies can access, control and manage their systems. The popularity of telematics in automobiles are fast rising, and the combination of the technology and the ease of accessibility as provided by this collision will increase that further.

With the smartphone application integrated into telematic systems – users are able to connect conveniently and effectively whenever and wherever they are. You can download the data of your vehicle onto your phone, in order for you to navigate well and investigate the condition of your automobile. This is especially helpful to fleet companies and for long drives. You can use your smartphone in unlocking your car door, starting your engine and checking the status of your car batteries. Amusingly, it can even help you look for your car if you forget where you parked. Your smartphone can make your car honk its horn or turn it’s lights on an off.

Applications work best if they are created based on the model and brand of the vehicle – which is why smartphone companies are also partnering with leading car manufacturers. Before the year ends, General Motors – for instance, should have rolled out their MyLink application. There are applications that only work for particular vehicles.

It helps that drivers are interacting with the mobile application so the creators have a general idea of where their innovations should go. To date, over 37 million vehicles are installed with telematics, and with the increasing fame of smartphones, it is not unlikely that a huge portion of those drivers will have access to this convenient data gathering application in vehicle telematics.

As vehicle telematics continue to branch out into the business sector, more and more ways of saving on money are being discovered as a result of this system. Not only do vehicle telematics help in fuel consumption, small fleets cut back on their auto insurance expenses due to the use of this system.

Auto insurance takes a big chunk out of a fleet’s budget as roads are oftentimes riddled with accidents and mishaps. At times companies have invested so much into their vehicles, which carry company goods from one place to another, that they cannot afford not to invest in insurance. Until recently, there was no way of cutting back on this expense.

About Telematics Auto Insurance

Though not all insurance agencies have this policy, several of them have incorporated the “safe driving insurance”. So how does it relate to vehicle telematics?

In short, this arrangement will involve the auto insurance company giving discounts to policies involving experienced and reliable drivers. By using the data taken from the telematics application, fleet companies can justify whether their drivers are reliable or not.

Auto insurance companies set up parameters that will define how “safe” a driver has to be in order to be an eligible candidate for this discount to be given. Most of them use a safety point system, the results of which are added and verified. Once it is proven to meet the standard safety rules, the company gets a discount on that particular policy.

The details will depend on the agreement between the two companies. Some insurance agencies increase the discount the longer the fleet stays safe. Thanks to the technology provided by vehicle telematics, this data can be easily submitted. It has to be understood that only this data is credible and accepted by the insurance companies – the discount will not work without telematics. So naturally, the first step in order to avail this discount is to install vehicle telematics into your fleet.

Some policies require the company to submit proof that they have continuous safety training programs for their drivers. This should be easily done as the telematics data should provide the specific violations of certain drivers, which include speeding, aggressive braking, excessive acceleration, lane changing, and other behavioral incidents that increase the risk of a vehicular mishap.

Insurance Savings from Telematics

One of the factors that brings down the costs of auto insurance is the accident rate. Since fleet companies have proof that their drivers are reliable and are not likely to be the cause of an accident, they may be eligible for a certain discount. The vehicle telematics will not only prove the safe driving skills of the driver, but also check on the running health of the vehicle. This only stresses on the fact that accidents will be unlikely to happen – unless outside factors cause it.

Fleet companies are also encouraged to keep improving their safety scores. It keeps their drivers and vehicles safe and at the same time increases the savings in their policies.

Auto insurance companies usually have partner telematics service providers, which are also most likely to have discounted rates to offer. It is a partnership that will create multiple levels of savings for any fleet company.

The savings will also go beyond the clause of the auto insurance of course. Safe driving means higher fuel efficiency and a well managed vehicle. Because of this, fleet companies save up on fuel consumption, vehicle maintenance and other fees involving traffic violations.

All of these savings because of vehicle telematics. So why not invest now?

Telematics is a type of integrated technology that uses the power of telecommunications, Global Positioning System and the Internet. There is actually a more detailed list of technology involved, but these three are the main components that make the system work. In particular, vehicle telematics incorporates the use of this technology in automobiles.

The use of telematics in vehicles allows business owners to monitor the movement of company automobiles, as they go about their daily routines. This is especially true for sales officers, delivery vehicles, field agents and other business functions and tasks that require an employee to work outside the office. It monitors productivity and can detect improvements in that particular business function. It also works as a data transmitter of vehicle information like fuel usage, engine performance and location. Usually a trigger or timed device prompts the sending of vehicle data to a monitoring office.

The monitoring office in turn uses this data to utilize this business function and make the service and performance better. Among the many improvements that can be implemented are gas efficiency, faster travel routes and overall increase in productivity.

On the business side, you will understand the logic behind the use of telematics. However, issues on employee privacy emerged.

Telematics and the Privacy Act

On May of 2011, Senator Jay Rockefeller, head of the US Senate Committee on Commerce, Science and Technology introduced the Do Not Track Online Act. This bill gives consumers the option to choose anonymity when online services try to collect their personal information. The information is usually used for data mining but it also paves way for hackers and Cyber fraud to vital information and possible identity theft.

The Act, when approved, will apply to online activities that include telecommunication applications and vehicle telematics. Though the bill does not directly prohibit tracking, it gives the affected party the option to agree or disagree with the tracking. However, the bill also states that if the data collection is necessary to provide the service required by the user, data collection can be demanded.

Given those details, telematics will not be affected or threatened by the Do Not Track Online Act. However, industry experts believe that if the federal government will not act on the privacy issues, state governments might pass laws in their local territories to ensure that privacy is protected.

Telematics: Intrusion or Not?

Through the perspective of a business owner, telematics remains to be a necessity to protect their investment and profitability. Not only that, it allows the driver to get immediate help from the monitoring office if needed. The benefits of this application outweighs the privacy issue.

In fact, telematics is already becoming a personal investment. Insurance companies can detect the speeding trends of a vehicle claiming for accident grants. In black and white, it is an intrusion of privacy, but if the vehicle to which the telematics device is connected to belongs to the company, the business owner has the right to know how it is being used.

To protect the employees, they can air out their concerns and queries to the management prior to agreeing to the application of this technology. Stipulations in the agreement can be made to ensure that the employees are given their share of privacy rights. That much is covered by the telematics application provider.

30 years ago, the idea of transmitting the location of a vehicle seemed impossible. If you told someone that you could tell where a driver was headed or know the current position, they wouild think you have some kind of super power. That is because 30 years ago, there was no Telematics.

Since the Internet came into existence, we have seen an explosion of technological advancement. Now we have mobile phones and personal computers that are both being utilized to make business transactions and data storage more convenient. Add to that the GPS (Global Positioning System) and you have the birth of  Telematics. This piece of information technology involves transmitting computerized data about vehicles using the internet.

What is Telematics?

Though it encompasses a very broad subject, this article will focus on Vehicle Telematics. Basically, the technology known as Telematics allows employers to monitor where drivers and their vehicles go every moment of the day. It stores vehicle data like the engine performance, fuel consumption and even something as specific as when the driver revs up the engine while driving. Daily routes and their stops can be reported thus making productivity measurements possible.

But how does it work?

It all starts with the GPS vehicle Tracking System that came from the combined technologies of mobile telecommunications, Internet, GPS and personal computing. A more sophisticated version of the GPS vehicle tracking is now available and it is called the Vehicle Telematics.

The vehicle is fitted  with a GPS Location Tracking Device. It is hardwired into the vehicle – specifically connected to the ignition and battery. This makes it possible for the device to monitor the engine performance to measure that performance at any given time. It is also connected to the antennae so it can transmit the information back to the employer’s systems back in the office.

In the past, transmitting  information was done via SMS (Short Message Service) through a programed mobile phone. This turned out to be costly and could be quite tedious. The improved Automatic Vehicle Location or AVL means the Telematics technology can be programmed to transmit information at regular time intervals or via a “trigger act”. This trigger act can be the ignition switch or changing of gears – depending on the specific configuration of the software. It makes tracking more convenient for both the monitoring office and the driver.

The user software part of the Telematics technology receives the information from the driver and vehicle. It can be installed on the employer’s local computer network and downloaded via the Internet. Because of this, viewing fleet activity in real time or browsing the historical performance is made possible. This process is made easier through the faster connections offered by broadband providers.

Benefits of Telematics

The benefit that Telematics confers on a business is primarily productivity improvement. Some employees were hesitant about this technology because privacy is something they did not want to compromise. However, the creators have tackled this before it was implemented to respect driver rights. This must be explained by management or the Telematics provider prior to implementation.
With the new AVL, the benefits of Telematics can go beyond the mere tracking of the company fleet. With this device, the driver can coordinate with the monitoring office to help calculate a faster route ensuring more productive journeys and les time spent stuck in traffic. This is possible via the digital map that can be downloaded by the monitoring office. With that, savings can be generated on time and fuel. And since the driver’s energy is not wasted on traffic, they are more conditioned to rev up their customer service rather than their engines thus improving client satisfaction.

Types of Vehicle Telematics

If you looking for operational improvements and overall organizational function, deploying Vehicle Telematics is the best option for you to maximize your fleet’s potential. If you find its benefits something that you can utilize, then it is time for you to find out which type of Telematics might suit.

Vehicle Tracking. The main use of this as the name suggests, is tracking your fleet. There is a GPS locator and GPRS modem installed in the vehicle. The GPS tracking software is installed on the company’s computers.

HGV Trailer Tracking. This type of device is specifically to track the position and movements of the trailer – not the vehicle it is attached to. The data from the trailer can be transmitted through either a satellite or a mobile communication network. Similar to Vehicle tracking, data can be accessed via software installed in the monitoring office.

GPS Satellite Navigation. This device uses a GPS and electronic mapping technology to create efficient route plans and allow easy navigation.

Fuel Saving Telematics. This is a more sophisticated device that helps companies monitor vehicle engines to improve on fuel savings. The engine’s diagnostics are now accessible for analysis. This tool alerts the driver if they are driving inefficiently (e.g. revving up or over-speeding, etc.)

Mobile Data. This makes use of wireless data communication that utilizes radio waves to make information accessible to a field based employee/driver.