How much do you know about the growing role of telematics in auto insurance? It isn’t new, but it is now going mainstream and is even the subject of national TV commercials. Still, a lot of consumers and commercial fleet owners are unaware of exactly what insurance telematics is, and what it can mean for insurance costs and driver safety.

As a provider of location-based intelligence applications, Telogis has delivered the benefits of telematics to our customers. This has allowed them to cut costs, improve productivity, and create a safer environment for their mobile workers. We’re also playing a growing role in helping bring insurance savings to fleet owners around the country.

How does insurance telematics make these benefits accessible to more fleet owners, as well as single-vehicle consumers? The key is providing organizations in the industry a common platform that is accessible, robust, and built on a modern architecture. An extensible set of tools within a common open platform allows developers to grow the potential benefits insurance telematics offers and to create customized applications for specific niches within the LBS industry.

For some fleets it has meant savings of up to 40% on their insurance costs!

Customer acceptance, improved technology fueling growth of insurance telematics

Industry experts are noting that telematics is becoming more commonplace among insurance companies as what were once barriers to entry (technology costs and consumer acceptance) are now rapidly disappearing in favor of the significant benefits offered by accurate driver monitoring and ‘good behavior’ history records.

Insurance companies are beginning to offer telematics systems on a much larger scale, and, in the future, could introduce associated location-based services that are only possible with large customer bases and GPS location-based data.

For example, benchmarking of driver information can allow the introduction of new safety ratings for drivers. It can also provide useful data for fleets and consumers to reduce risky driving behaviors that could lead to accidents and for road safety organizations in understanding training issues that need attention.

Insurance savings available to mobile workforces

There can also be financial perks for fleet owners and individual drivers in such things as reduced insurance premiums, loyalty programs, traffic-sourced driver guidance (best routes, cheaper gas prices etc.), and nearby services, such as when your GPS notes your fuel level is low and a gas station is close by that offers member discounts. In addition, savings can be obtained through fuel efficiencies and reduced vehicle maintenance costs from safer driving behaviors.

Some insurance companies are offering up to 40% off premiums for fleets using telematics that meet specific criteria. Find out now if your fleet is eligible.

Insurers are also excited about the possibilities offered by telematics, with some claiming it will revolutionize the underwriting risk for insurance companies, allowing them to extend coverage to situations previously not possible, or offer fairer premiums to safer drivers.

But the key to making these types of solutions available is building on a data management platform that is secure, robust, and built for accessibility and agile development.

The Telogis Platform provides insurance companies with the proven scalability, efficiency, and reliability not only to make insurers’ business models work and to facilitate insurers expanding their programs beyond niches to broader market segments but also to enable more fleets and consumers to participate and find additional savings.