Telematics and Vehicle Safety

Recent developments in telematics technology provide the opportunity to improve driver behaviour by rewarding good driving. Vehicle insurance companies in Europe and North America have successfully introduced pay-how-you-drive (PHYD) insurance policies where the driver agrees to have a telematics device installed in their vehicle in return for substantial reductions in insurance premiums. This paper describes recent developments with in-vehicle telematics, including incentives to encourage drivers to reduce risky driving behaviour. The potential road safety benefits are examined and some implementation issues are addressed. In-vehicle telematics is considered to be a promising vehicle safety technology, which can be easily retrofitted to existing vehicles.