Vehicle tracking can do more than recover your stolen car!

Insurance telematics and vehicle tracking

The consumer has been under pressure for quite some time, hoping for the economy to improve and trying to curb fast escalating expenses. It is during these times that we try to stop the “not so necessary” expenses – with those monthly deductions from the bank account as the first under consideration!

The expenses we cannot go without include those for the home loan, financing of the vehicle, municipal levies, water and electricity etc. Other expenses may not be compulsory – but in the day and times we live in are simply not possible to avoid – such as life and short term insurance cover or payment needed for security at our homes.

Financial advisors keep telling us that we need to scrutinize our car insurance cover, to compare offerings and pricings and to consider whether we, even if we cannot go without cover, can at least pay a more affordable premium. The same suggestions should apply when considering expenses for vehicle tracking – but there is another important question we need to ask- can we not better use the product that we purchase or subscribe to?

Most of us hate insurance cover for one reason – we only benefit in the event that something goes wrong and we have a claim! We either have to die [life cover] or we have to suffer damage to or loss of our motor vehicle [car insurance]. It often feels as if we are throwing money in some bottomless pit!

Modern Day Vehicle Tracking offers much more

This however need not be the case with the expenses for vehicle tracking. If we only see vehicle tracking as the solution to recover our stolen vehicle we are missing the point – we either are not fully aware of the benefits of modern day vehicle tracking or we may have the wrong product!

On the Arrive Alive website we find 2 important sections on vehicle tracking and insurance and how this can benefit road safety. The one discusses insurance telematics and the other takes a closer look at driver behaviour measurement. We believe that this is also very important for the vehicle owner wishing to get more value from his vehicle tracking solution!

What is insurance telematics?

An easy definition would be to describe insurance telematics and the process whereby insurers use the reporting by vehicle telematics devices to measure driving behaviour and scientifically calculate risks and car insurance premiums!

In the early days of vehicle tracking you and your vehicle tracking partner would have been aware of where your vehicle was at all times. This would assist the tracking companies to recover the vehicle and reduce the risk of loss for both you and your insurance company. Advances in fleet management technology have changed the landscape of vehicle tracking as these fleet managers wanted more info than merely where their vehicles were and whether they stayed on the correct route. They also wanted data to measure driving behaviour and to reduce wear and tear on their vehicles.

This technology is now also available to the individual vehicle owner. By installing vehicle telematics [tracking] devices such as a “black box” in your vehicle you are able to find a report of your driving behaviour. By giving the insurer access to this data the insurer is able to “individualize” your car insurance premium so that you may pay a car insurance premium according to how you drive – and not pay for how everyone else in your age group or area are driving!

Extract from report on driver behaviour measurement

What are the Benefits provided by your Vehicle Tracking Solution?

Amongst the suggestions offered on the Arrive Alive website when choosing a vehicle tracking solution we find the following bit of advice – “It is important to be aware that the technology you acquire today may be quickly overtaken by the technology of tomorrow. Your vehicle tracking partner must be able to provide you with new technology and upgrades!”

Your vehicle tracking partner may be able to offer a solution that can offer the following:

-Track the location of your vehicle

– Offer value as a device for stolen vehicle recovery

– Reduce your car insurance premium as a result of the ability to recover a stolen vehicle.

– Measure driving behaviour, resulting in reduced car insurance premiums from more responsible driving.

– Reduce your fuel expenses as the driving reports change your driving behaviour

– Reduce vehicle maintenance expenses as driving reports reduces your wear and tear from harsh acceleration, excessive braking, harsh cornering etc.

– Potentially reduce the risk of accidents and resulting car insurance claims

It is important to recognize that transportation costs and vehicle expenses need not to be reduced by changing or eliminating insurance or tracking cover – but could also be by finding the right product and using it effectively! Using the benefits of your vehicle tracking solution in partnership with your car insurance cover you may be able to reduce unnecessary expenses and enjoy the value of effective modern day vehicle tracking and insurance telematics.

Also view:

Insurance Telematics and Road Safety

Vehicle Tracking, Stolen Vehicle Recovery and Road Safety

Car Insurance and Insurance Telematics

Analysis of Vehicle Telematics Data

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