5 Benefits of Telematics: What Should Drivers Know?

Streaks of color outside of car window.

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Sending information from one place to another is the basis of telematics. It’s helped companies become more efficient and profitable with their processes — but it also helps people become better drivers and take care of their cars. Read on to learn about five benefits of telematics for drivers.

What Is Telematics?

Telematics is a connection between informatics and telecommunications. Informatics includes information systems — such as computers and other devices where people store data — and telecommunications refers to communication over a long distance, like by telephone.

In shorter terms, telematics means sending information over a long distance. For drivers, this means a car can collect data from your driving and send it remotely to a host computing device.

The owner of that information can then use it in various ways. Your auto insurer can use it to find discounts for you or your company can track its drivers and ensure they’re driving safely on the road.

Who Came up With Telematics?

Telematics’ roots go back to the 1960s — when some countries entered the Space Age. In this decade, the United States built satellites and launched them into space to track submarines with nuclear weapons onboard. This technology was among the first breakthroughs in the field of telematics.

The tech became more available to the public in the mid-1980s as companies developed devices drivers could use in their cars. In 1986, Etak invented the first global positioning system (GPS) for public purchase.

The European Union committed to developing telematics technology for logistics, driver safety and help for the economy by the early 1990s. In 1996, President Bill Clinton declared GPS and other telematics devices an international utility, meaning everyone could use this technology for free.

What Are the Benefits?

Like other technological advances, telematics has improved life on the road to make it easier and more comfortable for drivers. There are various benefits to drivers using telematics.

1. Increased Efficiency

When you drive to work, you likely take the same commute daily. You may get stuck in traffic or take a longer route that’s more convenient for you — both of which burn unnecessary gas.

Telematics systems can take the guesswork out for you by tracking your routes and telling you which path is most efficient. You can end up saving time and gas, which can contribute to a lower carbon footprint.

2. Better Safety

One of the most critical benefits of telematics is its improvements to driver safety. Telematics technology can help improve your driving habits by tracking your phone usage, speeding tendencies and other behaviors. Some companies use telematics technology to track their drivers so everyone on the road can get to their destination safer.

3. Legal Backing

If you get in a car accident, telematics can be a helpful friend in a legal dispute. Including dashcams with your system can record your driving and the road in front of you — coming in handy to prove someone else is at fault for a wreck and shield you from liability.

4. Cash Savings

These days, insurance companies offer safe driving discounts to their customers based on telematics. These systems track your phone usage, speeding, braking habits and more.

Telematics devices can also detect engine problems earlier than a human can so you can figure out the issue before it worsens. Addressing this issue early could mean money saved at a mechanic’s shop.

5. Asset Recovery

With modern technology, you can use telematics to track your car. A GPS locator can send alerts from the vehicle to your phone so you can find your car and notify law enforcement if someone steals it.

Telematics Serves Everybody

As technology evolves, it streamlines processes and makes things easier for humans. Telematics is no exception to increasing ease of use, especially for driving. It can help you save money, become a better driver, increase fuel efficiency and recover stolen assets.

Telematics started as a tool the U.S. government used for space exploration and the military. Now, you can use it to keep your car safe and in great shape.

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