Could Telematics One Day Be Installed in Every Vehicle

And what would that future look like in terms of safety and privacy?

The Basics of Telematics

Telematics is a term that refers to a collection of technologies that collect, transmit, and analyze data from various objects. 

In this context, we’re using the term telematics to refer to devices capable of vehicle tracking. Telematics are typically installed in vehicles so they can collect and transmit data related to how those vehicles are being operated. Depending on the nature of the device, it may collect data based on speed, acceleration, sudden changes in trajectory, inputs by the operator, and more.

The obvious benefit of this is that insurance companies, employers, and other authorities can retrieve information and use it to analyze what happened in the event of an incident. If a vehicle is involved in an accident, telematics data can tell you whether the operator of the vehicle made a mistake and detail the root causes of that accident.

Telematics are often, but not always, associated with dashcams. Dashcams are video cameras that typically capture a running stream of footage, which can be reviewed in the event of an incident. They can be placed at the front and rear of the vehicle for a complete picture of the vehicle’s surroundings at all times.

A Picture of Telematics in Business

Businesses have been quick to adopt telematics as part of their fleet vehicle management strategy. For example, construction businesses strongly benefit from dashcams and telematics in their vehicles and equipment. With the use of this equipment, business owners can mitigate risk and bring more objective data to the table if any of their vehicles are ever involved in an accident. Knowledge of telematics and dashcams in vehicles also serves as an incentive for operators to operate these vehicles and pieces of equipment more safely.

For construction businesses, this is an especially powerful advantage, because there are so many different types of vehicles and pieces of equipment that are crucial for the business’s success. These relatively inexpensive pieces of technology can save businesses money in terms of risk mitigation, insurance savings, increases in productivity, and much more.

Why Would We Consider Telematics in Every Vehicle?

The benefits for a construction business are obvious. The same is true for almost any business that manages a fleet of vehicles. But why would we even consider the possibility of including telematics in every vehicle?

•       Safety and behavioral changes. Arguably the best benefit is higher safety on the roads. If people knew they had telematics devices transmitting data about how their vehicle is being operated, they would be incentivized to operate their vehicles much more safely. Even if this effect is minimal, it could save lives – and millions, if not billions of dollars.
•       Insurance costs. Telematics data could also mitigate insurance costs in some ways. With safer roads and greater accountability for individuals who are at fault, we could greatly decrease insurance premiums for most people.
•       Objective data. Whenever there’s an accident, investigators must determine, objectively, what happened. This isn’t always easy to do, but with telematics devices installed in every vehicle, it becomes much easier. While there may be fringe cases where it’s difficult to determine exactly what happened, most accidents can be resolutely investigated with a simple dive into the data.
•       Minimal costs. Telematics devices are advanced forms of technology, but they aren’t especially expensive. Compared to the safety benefits, the costs are trivial, and most people (and entities) would be willing to pay them.
•       Minimal invasiveness. Similarly, telematics are minimally invasive. Most people won’t even notice that they’re there. Unlike other forms of safety technology, telematics generally remain in the territory of “out of sight, out of mind.”

The Issues

However, there are some issues to consider as well.

•       How reliable is this technology? Telematics data is generally considered to be reliable. However, when there are thousands or even millions of dollars on the line, even slight deviations in data projections can have a big impact. If we’re going to include telematics in every vehicle, we need to make absolutely certain that there are reliable sources of objective data.
•       Who pays? Telematics devices are relatively inexpensive, but they aren’t free. If telematics are going to be included in your vehicle, are you the one that’s going to pay for this technology? Would your insurance company pay to have telematics installed in your vehicle? Would this be a sunk cost for manufacturers?
•       Whose consent is needed? Generally, we require individual consent before an individual can have their data tracked and utilized by another entity. Would we require consumers to consent to have their data transmitted? And what would these consent forms look like?
•       What about older vehicles? Assume that we start including telematics in every new vehicle sold. Would we require people with older vehicles to install telematics in those vehicles? What if they resist? What if people use a non-requirement as a loophole to avoid dealing with telematics altogether?
•       What about privacy? Privacy is a significant concern when it comes to technologies like telematics. How much do we care about consumer privacy? And how do we weigh those privacy concerns against safety concerns? These are not easy questions to answer.

The Bottom Line

Is it possible that we’ll one day have telematics in every vehicle? This is a major possibility, especially if we can figure out how to mitigate some of the issues in play. However, given public distaste for privacy invasiveness and the general sluggish pace of widespread regulations and norm changes, it’s unlikely that telematics will be installed in every vehicle anytime soon. For the time being, telematics will primarily belong in the realm of commercial fleet vehicles.