{"id":228144,"date":"2021-11-15T17:31:35","date_gmt":"2021-11-15T17:31:35","guid":{"rendered":"https:\/\/zenduit.com\/?p=228144"},"modified":"2023-08-29T10:38:42","modified_gmt":"2023-08-29T10:38:42","slug":"how-insurance-companies-can-and-should-use-telematics-data","status":"publish","type":"post","link":"https:\/\/apps7.devmaverick.com\/newzenduit\/how-insurance-companies-can-and-should-use-telematics-data\/","title":{"rendered":"How Insurance Companies Can \u2014 And Should \u2014 Use Telematics Data"},"content":{"rendered":"

For many insurance providers, dash cam telematics are becoming helpful at providing more data about a commercial fleet and its operations. These data sets can be especially useful during the claims process as well as determining coverage options. Since all of the data and video footage is recorded and stored on a cloud-based platform, it is easy to access and determine liability when disputing false claims or tickets.\u00a0<\/span><\/p>\n

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At Zenduit, we stay on top of IoT developments to keep you and your fleet informed. Previously, we posted about <\/span>the impact of dash cams on your insurance premiums<\/span><\/a>, but there are other ways in which telematics data can impact the insurance industry \u2014 and your bottom line.<\/span><\/p>\n

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Pay-as-you-go<\/span><\/h2>\n

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Telematics was first used for auto insurance in Canada in 2013, and has since grown to be a comprehensive part of many insurers\u2019 offerings. Insurance telematics is gathered by a small wireless device installed in a truck\u2019s diagnostic port (typically under the steering wheel). The device acts as a hub for information and communications between itself and the vehicle, linking to a web portal or mobile app so drivers can keep track of their mileage; drivers are then sent a warning when they near the end of a 1,000-kilometre increment.<\/span><\/p>\n

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For example, the Canadian Automobile Association (CAA) introduced the MyPace program in 2018. With this model, one would pay in advance for a daily base premium, starting with an initial 1,000 kilometres. You would also pay any additional charges in accordance with how much you drive. A telematics device in the vehicle, or an app on your mobile device, tallies the kilometres the car travels.\u00a0<\/span><\/p>\n

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Pay-how-you-drive<\/span><\/h2>\n

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The CAA device only tracks distances, unlike other devices that can monitor and track driving behaviours such as harsh braking or speeding. These programs are known as pay-how-you-drive. In this instance, telematics would track driving behaviour on the road, either via an app on your mobile device or a device installed in the vehicle that uses a combination of GPS technology and on-board diagnostics, and then transmits that information to an insurance provider.\u00a0<\/span><\/p>\n

Some insurance companies even allow you to track your fleet\u2019s driving habits and savings online, with an online information dashboard that updates in real-time and provides your telematics discounts on a monthly cadence.\u00a0<\/span><\/p>\n

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The benefits of insurance telematics<\/span><\/h2>\n

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Insurance telematics, also referred to as usage-based insurance (UBI) telematics, has created a massive shift in determining an organization\u2019s premiums and how insurance is assigned to your fleet. \u200b<\/span><\/p>\n

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Telematics data can customize your insurance premiums based on your fleet\u2019s driving patterns; It monitors your drivers\u2019 behaviours on the road in real-time and offers an objective, holistic picture of your fleet.\u00a0\u00a0<\/span><\/p>\n

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Some insurance companies use telematics data to observe specific risk or behaviours associated with driving a commercial vehicle, including:\u00a0<\/span><\/p>\n