Telematics used by third of UK companies to disprove liability

More than a third (35%) of businesses in the UK have used telematics tracking technology to contest either a speeding fine or a false insurance claim, new research from RAC Business reveals.

According to the research among 500 UK businesses*, 18% of companies have used telematics data to prove that a driver wasn’t at fault for an insurance claim, and a further 17% have used the data to successfully appeal against a speeding fine. This could be saving firms thousands of pounds when applied across the country’s estimated 5.2m** businesses.

Telematics has also seen an ongoing uptake among businesses, with more than a third of all UK companies (38%) now employing a telematics system in their fleet, according to RAC Business’ research.

RAC Telematics MD Nick Walker said: “These findings point to clear benefits for fleet managers using telematics technology. Speeding fines and insurance claims can be difficult to contest and often result in fines being incorrectly imposed as well as leading to damaging increases in your insurance premiums.

“Telematics provides an immediate solution by generating data that can prove beyond doubt what actually happened during the incident. For example, businesses can be subject to speeding fines committed by drivers cloning their vehicle number plates, but telematics can pinpoint the location precisely, enabling the business owner to argue their vehicle could not have been involved.

“This was tested in Macclesfield Crown Court last year when telematics was used to disprove a fraudulent insurance claim worth £54,000. Or, conversely, if a driver or employee has committed an offence but is trying to cover it up, the telematics data will show what actually happened.”

The research also shows that telematics systems can reduce fleet costs by encouraging safer driving. Some 58% of companies reported that telematics had reduced the amount they paid in speeding fines, 47% said that their use had led to a drop in insurance premiums while 68% of firms said that telematics had cut their combined fuel bill.

Lorry drivers are the most likely to be positive about telematics with 52% recognising the safety benefits, compared with 46% of company car drivers, which may be due to lorry drivers’ long-term use of tachometers in their vehicles.

Nick Walker continues: “If businesses are relying on telematics to disprove liability in speeding and insurance cases then the data needs to be reliable. The best systems on the market are those that can provide an accurate report, even at low speeds where incidents are often disputed.”

RAC Telematics also features advanced crash detection technology. Tests carried out in 2015 by the Transport Research Laboratory found the system has a 92% crash detection accuracy rate.

ENDS

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The RAC Media Centre provides journalists and news outlets with the latest motoring-related news, comment, data and research.

The RAC is an iconic UK brand, and provides complete peace of mind to nearly 14 million UK private and business drivers - whatever their motoring needs. As well as its premium nationwide breakdown assistance service – with an expert branded patrol workforce attending more than two million breakdowns every year – and European breakdown assistance products, it offers a wide range of market-leading products across insurance, legal services, vehicle inspections and service, maintenance and repair. Included in this is the first-of-its-kind nationwide Mobile Mechanics service which brings the garage to homes and workplaces. 

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