What is Telematics and What Does it Mean?

What is Telematics and What it Means?

Telematics sounds like a big science word that you probably expect to hear in a speech by Elon Musk as he unveils a groundbreaking technology. Fortunately, the truth is telematics is just a term used to outline how data is captured from vehicles transferred across different mediums, gathered, and the intelligence provided with it. Car and fleet telematics typically involves GPS and cellular tracking technology. In a world driven by Big Data, the average person might be intimidated by telematics, but there’s no need to feel uncomfortable.

1. If Your Car Has it, You’ll Know It

Your consent is needed for telematics. It’s the law in many states, California and Wisconsin for example, to notify persons who have a form of data collection device installed in their vehicle. Depending on the circumstances when buying, or leasing a vehicle, it’s best practices for financers to notify you if they’ve installed a telematic device in your vehicle as a condition of the financing agreement. The most common telematic device includes GPS and cellular technology.

2. Your Data is Secure

You’re in control of who sees your data. The only people who can see your personal data are those you’ve allowed access. When you purchase a telematics solution or if there is one preinstalled in your car, you opt-in for certain parties to view your data depending on circumstances. For instance, if your vehicle is stolen, your telematics provider can work with law enforcement to recover it, but they only access your vehicle’s location during the recovery process.

3. The Technology Saves Time and Promotes Safety

Annually, car owners who have telematic devices save more money than those without. Benefits include dealer specials and coupons when servicing their vehicle as well as extending the life of the vehicle by performing routine on time maintenance. Additionally, some devices can tell you where your car is parked saving you time in the long run. Some insurance providers even offer discounts if your device includes Stolen Vehicle Recovery service.

Those are the facts, plain and simple. Telematic devices are simple, secure, and helpful. If over 30 million cars have it, why don’t you?

Click here to learn how a connected car can help you harness data and improve your drives.

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