Fleet telematics sparks surge in contested claims and lower premiums

Nearly one in five UK companies have used telematics to content an insurance claim, according to a survey by RAC Business.

RAC surveyed 500 UK firms and it emerged that 18% have used telematics to contest an insurance claim.

And 47% said the use of telematics had led to a drop in their insurance premium. 

When it comes to contesting speeding fines, 17% said they had successfully used telematics. 

Overall, more than one third of UK firms (38%) are using telematics in their fleet systems.

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 showed that 58% had reduced speeding fine payemtns and 68% had cut their combined fuel bill using telematics.