Telematics and Fleet Insurance: Key Questions Answered to Cut Costs & Improve Safety

When insurers calculate fleet insurance, they typically use the following telematics data:

• Driving habits: harsh braking, acceleration, and speeding
• Vehicle usage: mileage, hours of operation, and time of day
• Vehicle health: engine diagnostics and maintenance needs

Telematics impacts fleet insurance by reducing premiums, offering usage-based insurance (UBI), improving risk assessments, mitigating accidents, and speeding up claims.

Vehicle telematics collects GPS and vehicle data using wireless communication and IT systems. The information is processed and shared with fleet managers and stakeholders for better decision-making.

Telematics technology benefits fleet management by enabling real-time vehicle and driver monitoring. It boosts efficiency, reduces toll and fuel fraud, improves dispatching, enhances communication, cuts fuel costs, and automates reporting.

Yes, telematics can lower your car insurance premiums. When you install a telematics device, your insurer tracks your driving habits. Safe driving — such as smooth braking and avoiding risky times — may qualify you for discounts or rewards.

Yes, telematics does reduce accidents. It monitors driver behaviour and vehicle conditions, allowing fleet managers to identify risks early and take corrective action.

In South Africa, to qualify for fleet insurance, you typically need between 2 and 500 vehicles.

Fleets may see insurance savings immediately through UBI discounts or at their next policy renewal, depending on the insurer’s programme. Long-term savings come from improved safety and reduced risk over time.

Cartrack’s telematics device helps fleets monitor driver behaviour and reduce risks. It uses cameras, sensors, GPS, and AI analytics to detect distraction, drowsiness, speeding, harsh braking, and tailgating, sending instant alerts to drivers and managers.

Installing and managing Cartrack’s telematics devices is simple. Technicians handle installation, and you can monitor all vehicles through a web or mobile platform. All data is accessible from one central dashboard.

Most providers charge R1,900 to R3,100 for hardware and installation. However, at Cartrack, hardware installations are always free.

Driver scorecards improve a fleet’s safety by making behaviour transparent, increasing accountability, reducing accidents, and lowering maintenance and insurance costs.