Telematics fleet management

Telematics fleet management allows businesses to track their vehicles effectively and efficiently. Find out more today and compare quotes

For many businesses, vehicles form an integral part of their business; whether you’ve got one company car or a fleet of over 20 trucks, it’s important that your vehicles are managed as efficiently and effectively as possible.

With this in mind, over recent years, there has been a significant increase in the number of businesses using telematics to track and manage their fleets – allowing them to keep tabs on their employees, improve the efficiency of their fleet, and reduce fuel consumption.

Within this guide, we’ll take a look at the various different telematics services available and the benefits they offer to businesses. We’ll also discuss the pricing of telematics systems and the factors that can impact the price you’ll be expected to pay for your telematics software and hardware.

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In this article we cover:


What is Telematics?

Bringing together the terms ‘telecommunications’ and ‘informatics’, telematics is the integrated use of telecommunications with information and communications technology.

Telematics technology can be integrated with GPS technology in order to provide fleet management services. This is known as vehicle telematics.

Vehicle telematics is an in-depth method for tracking a fleet of vehicles, collecting data on a wide range of metrics in order to help managers get the most out of their business.

Telematics works by tracking the movements of the vehicles in your fleet using GPS systems and mobile technology, allowing you to monitor the location, movement, status, and behaviour of a vehicle within the fleet.

In addition to the simple GPS location method used by most vehicle tracking systems and security devices, telematics also calls upon Radio Frequency Identification (RFID) technology to collect data.

The operational data collected by telematics tracking systems can include:

  • Vehicle speed
  • MPG
  • Fuel used
  • Driving style
  • Whether the ignition is on
  • Whether the doors are open
  • Weight of load
  • Gear
  • Braking intensity
  • Activation of panic alarm

Telematics is the integrated use of telecommunications with information and communications technology. Using telematics allows your business to track vehicles to ensure that everything can be managed as effectively as possible.

Telematics Services

From sole traders, through to companies with over 1000 employees, telematics services can be utilised by businesses of all sizes, within all sectors. This technology is particularly significant in the manufacturing, retail, business services, construction, and transport and distribution services sectors.

Businesses use telematics for a number of applications, including:

  • Staff vehicle tracking
  • Monitoring driver behaviour for training purposes
  • Providing accurate mileage reports for tax and expenses purposes
  • Supporting customer service by monitoring delivery vehicle progress
  • Monitoring vehicle health

Telematics benefits

Telematics systems offer a whole host of benefits to businesses of all shapes and sizes, including:

  • Increased productivity
  • Reduced labour costs and overtime hours claimed
  • Controlled fuel costs
  • Improved customer service
  • Increased fleet safety and security
  • Reduction in speeding incidents and fines
  • Reduction in accidents
  • Reduction in maintenance costs
  • Reduced operating expenses
  • Reduced unauthorised vehicle usage

In the sections below, we will cover some of the major telematics benefits in more detail.


Fuel savings

Telematics is extremely useful when it comes to managing the fuel costs of fleets of all sizes, even the smallest.

By monitoring driver behaviour, the system can advise employees on excessive speeding, harsh breaking, and erratic behaviour in general.

Over time, this can save a considerable amount of expenditure on fuel costs.


Security

Telematics systems not only allow you to track a vehicle’s location, but they can also alert you to any unauthorised use of the vehicle, informing you in real time, of a vehicle’s movements outside of working hours or outside of set boundaries.

This boosts security and also optimises the chances of vehicle and cargo recovery in the event of theft.


Data Storage

Whether you’re using your telematics system for tracking, navigation, or security, it is equipped to store vast amounts of detailed information about your operation.

This information can then allow you to simply adjust or adapt areas of your business in order to improve efficiency.


Lower insurance premiums

Another use of telematics is in insurance. Telematics insurance involves a telematics box being fitting into your vehicles (often referred to as a black box).

This is then used to measure various aspects of how, when, and where you drive. This can be beneficial for companies of all shapes and sizes, including those who have just one or two company cars.

Having telematics boxes fitted in your company vehicles allows you to prove to your insurance provider that your employees drive safely. This, in turn, should help to bring down your instance premiums as you’ll pay based on how safe your drivers are, rather than paying for insurance based on the average driver.


By tracking the movements of your company’s vehicles, your insurance provider will be able to assess the skill and ability of your drivers, based on factors such as:

  • Location
  • How long they’ve been driving for
  • How rapid or measured their acceleration is
  • How harsh or smooth their braking is
  • Cornering

Telematics insurance products can also offer other benefits, such as anti-theft tracking and personalised online driving records.


Telematics benefits and prices


Telematics Prices

The cost of telematics products and services can vary significantly, depending on a range of factors, including:

  • Number of vehicles
  • Type of vehicles – are you working with cars, trucks, vans, motorcycles?
  • Length of contract
  • Accuracy – how accurate is the data that is generated?
  • Where you’re located
  • The features and tools you’re looking for
  • Active or passive system – Telematics systems can be either passive or active. This means that the data collected can be uploaded at a later time (passive), or managed in real-time (active). Active systems offer more control but are generally more expensive.

There are a wide variety of telematics service providers and it’s important to choose the best one for your business, your fleet, and your requirements. As well as offering different services, each service provider will also offer a different pricing structure.

The price of telematics systems and services are usually provided via a quote upon inquiry, so it isn’t easy to provide accurate fixed costs. However, it is possible to pull together some general costs and guidelines.

For example:

  • RAC Telematics cover starts from just £8 per vehicle per month, based on a 60-month contract.
  • Telematics Pro starts from £14.99 per vehicle per month for fleets of 1 to 20, £13.69 per vehicle per month for fleets of 21 to 50, and £12.88 per vehicle per month for fleets of between 51 and 100, with no installation fee.

Plan Vehicles Cost
Telematics Pro One to 20 £14.99/vehicle
Telematics Pro 21 to 50 £13.69/vehicle
Telematics Pro 51 and 100 £12.88/vehicle

Some telematics services will also include an initial installation charge, which can typically be paid up front or incorporated into the monthly payments.

In addition to this, it’s important to be aware of hidden extras. For example, some companies will charge extra roaming fees if your vehicles go out of the country, or fees for changing vehicles. Others charge termination fees or costs for removing tracking units from your vehicles at the end of your contract.

When considering the cost of telematics for your fleet, it’s important to take into account the potential savings that telematics services can offer your business.


For example:

  • Reduced maintenance costs – Because telematics monitors driving performance, any inefficient or reckless driving practices can be addressed quickly, before they have a negative impact on the condition or safety of the vehicle. Over time, this should reduce maintenance costs.
  • Save money on fuel – Telematics promotes efficient driving, meaning that your business vehicles’ fuel consumption should improve. This should ultimately mean that you won’t be spending as much money on fuel.

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Compare telematics fleet tracking quotes

Telematics is an excellent tool for managing fleets, improving efficiency and saving money. If this page has helped you to understand what you should be looking for, then you might want to start speaking to UK suppliers today – Startups can help with this.

To compare quotes, services, and prices from top UK telematics providers, simply complete the form at the top of this page. Our quote comparison process is free, quick and easy, and it could help your business to save time and money.

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