How Telematics Data Intel Can Help WIth Lowering Fleet Costs

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Telematics is an integral part of fleet management. It is the technology that allows a vehicle to communicate with an external source like fleet management software. Telematics tracks data like speed, location, rapid acceleration, and signs of drowsy or distracted driving. It helps keep fleets safe and productive, but did you know that it can also save fleets money? Telematics can help fleets keep costs down in a variety of different ways. This article will break down the ways that telematics can help lower fleet cost. 

Reduction in Fuel Use

Fuel use is one of the highest costs to fleets today. It may seem like an inevitability, but driver behavior has a significant impact on fuel use. Telematics can track metrics like excessive idling, which wastes up to half a gallon of fuel per hour. Furthermore, drivers who engage in aggressive driving behaviors use 10.9% more fuel than the average driver. Telematics can pinpoint aggressive driving behaviors and alert fleet managers to take action before they burn a hole in the company’s wallet. Fleet managers can assign coaching and teach drivers the consequences of these behaviors. Finally, telematics tracks location, so fleet managers know when drivers are on unauthorized trips. These trips waste company fuel, and fleet managers can alert and educate the driver whenever they see unauthorized use of the vehicle. 

Reduction in Accidents

Driving with telematics means driving safer. Telematics tracks signs of distracted and drowsy driving, two of the leading causes of accidents in fleets. Distracted driving causes over 3,000 deaths on the road a year. It is a highly prevalent problem that all fleet managers must address. Many fleets are doing so with telematics. Accidents can cost fleets anywhere from $16,500 to $500,000, depending on if there are injuries. This is not to mention the cost of insurance premiums and time lost on the job. Avoiding accidents is not only best for a fleet’s safety but for the sake of its budget as well. Fleet managers can take action when they see signs of distracted driving by employing in-cab coaching to address the problem in real-time. Preventing accidents benefits everyone in the long run. 

Reduction in Breakdowns

Telematics also helps keep up with vehicle maintenance. Manually keeping up with dozens or hundreds of vehicles is impossible. Therefore, telematics and fleet management software exist to help. Telematics alerts fleet managers when a vehicle needs maintenance. With fleet management software, managers can even set up routine maintenance alerts. Preventative maintenance is a must for any fleet, as it increases the longevity of fleet vehicles. Breakdowns cost fleets thousands in lost revenue and repairs, so it’s vital not to wait until a vehicle breaks down on the road. Preventative maintenance alerts with telematics leave no excuse to keep vehicles up to date and running smoothly. 

Reduction in Insurance Premiums

Most insurance companies will offer a discount for fleets who use telematics. It is a benefit beyond all of its valuable features. Telematics increases a fleet’s safety, making that fleet less of a risk for the provider to insure. Therefore, insurers offer discounts to incentivize the use of telematics. Suppose an insurance company does not provide a discount for simply having telematics. In that case, fleet managers can gather the data from telematics to show real proof that their drivers are safe and low-risk to the insurance company. Either way, telematics paves the way to insurance savings. 

Reduction in Downtime

Telematics maximizes efficiency so fleets can get more jobs done in a shorter amount of time. This means more customers and a better reputation for the business. Route optimization software, fleet management software, and safety measures rely on telematics to run day-to-day operations. Fleet managers don’t have to manually track data, which is tedious and prone to mistakes. Instead, they can focus their minds on bettering the fleet, making decisions to improve operations even more! Efficient fleets get more jobs done, have better reputations, and have higher customer satisfaction than those still scrambling to track with paper and pen. 


Overall, telematics gives fleet managers a lot more power to help fleets become more effective, safer, and ultimately, save on costs. Telematics can save fleets money in so many different ways that many managers already take advantage of and others that most managers don’t even realize. This technology continues to grow with new vehicles and new software. Azuga is at the forefront of these trends. Follow Azuga to keep up with the latest in telematics technology and how it can benefit your business.