Ontario Automobile Insurance Companies And Vehicle Manufacturers Ultimate Benefactor Of Telematics

With growing prominence of the use of Telematics for Ontario drivers, little evidence has been produced to support the notion that the average Ontario car driver would benefit by having a Telematics instrument installed in their vehicle. Both the automobile insurance industry in Ontario and vehicle manufacturers have produced white papers on the inherent benefits to their respective industries.

Some of these benefits include:

The initial benefit supported by both the automobile insurance industry in Ontario and vehicle manufacturer is that the Telematics device will incent safer driving. This will lead to a reduced chance of accidents having an impact of lower insurance claims volume and related costs to deal with claims.

The information and data generated by the Telematics system will have a positive effect on claims by increasing their efficiency of processing. Car insurance companies claim that this will lower their processing of insurance claims costs, leading to an eventual cost savings of insurance rates to drivers.

With automobile insurance fraud in Ontario still a concern, the data and information generated by the Telematics system may provide early detection and subsequent prevention of fraud. Other studies have shown that if Ontario can reduce the amount of fraud within the insurance industry, this will ultimately lead to lower costs which will be shared by all Ontario drivers.

With Telematics systems yielding fewer automobile accidents, they will be a reduction or essentially and elimination of the need for towing services. The net effect of this is reduced downtime, lower overall code charges, impound fees and rental car costs. Ontario insurance manufacturers claim that these costs reductions will eventually be shared by their customers.

Vehicle makers alike, claim that Telematics will also benefit by way of automated subrogation recovery. These devices will more quickly established fault, and reduce cycle time and claims processing. Again this will reduce the overall claims processing costs and cost of operations which savings will be shared by consumers hence the drivers of vehicles.

Telematics by way of its very nature will provide driving behavior information and data in real time. This will enable automobile insurance pricing based on individual risk profiles of drivers. The insurance industry claims that a significant cost of assessing the initial customer driver will be substantially reduced and thus these savings will ultimately be passed on to their customers by way of lower automobile insurance rates.

Both the vehicle manufacturer and insurance industries claim that by way of installing a Telematics device in ones automobile, this will encourage safer driving and will thus reduce the chance of accidents yielding an overallmore safe environment for all. Safer driving will also reduce the loss of lives and other disabilities, create safer roads and produce a less accident prone society.

The deployment of Telematics devices in vehicles will act as a deterrent and fight vehicle theft, an industry expert claimed. While this may be true as it will allow for the insurance company more efficient tracking and recovery of stolen vehicles leading to lower societal expenses and ultimately cost savings to the insurance company which will be filtered down by way of lower insurance rates to the Ontario consumer.