Telematics refers to hardware installed in a vehicle, usually plugged into the OBD-II port or hardwired, that transmits GPS location, speed, harsh braking and acceleration, idling, engine diagnostics and mileage to a fleet management platform. It operates independently of the driver's phone, so the vehicle is tracked whether or not the driver app is running. Many providers combine telematics with dash cameras.
Telematics gives dispatch a live map of every vehicle, supports mileage and route verification for audits, flags unsafe driving before it becomes an accident, and schedules maintenance from actual engine hours. Insurers increasingly offer premium credits for fleets with telematics and cameras, which can offset the monthly cost. Pair it with the inspection and maintenance program to keep vehicles in service.
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