What is Telematics? Know about the Modern Insurance technology that is backed by Verizon,Ford and BMW.

Have you people seen the movie Tarzan the wonder car ? Imagine the same car without the ghost inside it. Difference between the car in the movie and yours is just telematics.

Telematics in a nutshell is a system that combines modern Information technology with telecommunications. Taken from french word télématique referred to the transfer of information over telecommunications, Telematics clubs different arena’s of the modern Advanced technologies together to create an envisioned future.

Telematics at its core is a system that facilitates an intelligent system that is installed in a vehicle which will communicate the telemetry data with the defined server. Using GPS Data, the devices inside the vehicle will share specific data to learn and understand different driving patterns. These learnings are then used to form the basis of future offerings to customers.

Telematics can also be used to understand your own driving patterns. Knowing whether you drive frequently in crowded traffic or Off road kind of Roads will help in increasing the fuel efficiency of the vehicle itself saving money in your own pocket.

With systems such as Vehicle tracking, asset tracking for Fleets,safety tracking - Telematics has also helped drivers with Improved safety and elevated productivity.

But that's just not it.

For example let’s say you are a very cautious driver. You adhere to the traffic rules, regularly check up with your mechanic and make sure your vehicle is always safe to travel with. But your friend is not so careful with his vehicle. He thinks regular check ups for the vehicle is just a plain waste of money and is usually reckless with his driving too.

But both of you are asked to pay the same Insurance Rate.

With telematics data, this generalised approach will be just a memory. Insurance companies will read and analyse the telematics data and suggest cheaper rates for your Insurance when compared to your friends.As Industry expert in one interview explained,

“All of this data becomes actionable. It can be used immediately at the site of an accident to help the driver get the claims process started immediately. It can be used in accident reconstruction to enable insurers to build a more accurate assessment of what actually happened, rather than relying on witness testimony. And finally, it can be used to develop a more complete and personalized risk profile, which will ultimately have an impact on insurance rates for consumers.”

With the world being connected, most of the automakers have shown a clear inclination towards telematics. More than 37% modern automobiles are connected with one or the other kind of telematics.

Looking at Governments world wide making immense progress data privacy, telematics surely looks as the driving technology for the Post Covid world.