---
title: "Vehicle Telematics: Myths, Facts, and Benefits"
description: Unravel the myths and discover the facts and benefits of vehicle telematics. Get insights into your driving habits and potentially lower insurance rates.
image: https://blog.concklin.com/hubfs/Imported_Blog_Media/UBI-Device-2.jpg
---

[Skip to content](https://blog.concklin.com/blog/vehicle-telematics-myths-facts-and-benefits.html#main-content)

[facebook-f icon](https://www.facebook.com/ConcklinInsurance) [linkedin-in icon](https://www.linkedin.com/company/concklin-insurance-agency) [Twitter icon](https://twitter.com/ConcklinA) [youtube icon](https://www.youtube.com/channel/UC_HnJQ4S_USSxBJkauXwu6A)

[**Contact Our Team**](https://insurance.concklin.com/compare-quotes#CLQuoteRequest)

**[630-268-1600](tel:+16302681600)**

**[Contact Our Team](https://insurance.concklin.com/compare-quotes#CLQuoteRequest)**

**[630-268-1600](tel:+16302681600)**

[![Concklin Logo-1](https://blog.concklin.com/hs-fs/hubfs/Concklin%20Logo-1.png?width=314&height=100&name=Concklin%20Logo-1.png)](https://insurance.concklin.com/)

- About Us
  
  Show submenu for About Us 
  
    - [Our Story](https://insurance.concklin.com/about-us-who-we-are)
    - [Our Team](https://insurance.concklin.com/meet-our-team)
    - [Contact Us](https://insurance.concklin.com/contact-us)
- [Markets & Industries](https://insurance.concklin.com/industry-specific-insurance-programs)
- [Business Insurance](https://insurance.concklin.com/business-insurance-coverage)
- [Personal Insurance](https://insurance.concklin.com/personal-lines-insurance-coverage)
- Life & Health Insurance
  
  Show submenu for Life & Health Insurance 
  
    - [Life Insurance](https://insurance.concklin.com/life-insurance)
    - [Health Insurance](https://insurance.concklin.com/health-insurance)
- Resources
  
  Show submenu for Resources 
  
    - [Claims Resources](https://insurance.concklin.com/claims-resources)
    - [Cyber Resources](https://insurance.concklin.com/cyber-insurance-resources)
    - [Blog](https://blog.concklin.com/)
    - [Video Library](https://blog.concklin.com/video-library)
    - [Client Portal](https://insurance.concklin.com/client-portal)
- [Make A Payment](https://concklin.appliedpay.com/)

Open main navigation

Close main navigation

- About Us
  
  Show submenu for About Us 
  
    - [Our Story](https://insurance.concklin.com/about-us-who-we-are)
    - [Our Team](https://insurance.concklin.com/meet-our-team)
    - [Contact Us](https://insurance.concklin.com/contact-us)
- [Markets & Industries](https://insurance.concklin.com/industry-specific-insurance-programs)
- [Business Insurance](https://insurance.concklin.com/business-insurance-coverage)
- [Personal Insurance](https://insurance.concklin.com/personal-lines-insurance-coverage)
- Life & Health Insurance
  
  Show submenu for Life & Health Insurance 
  
    - [Life Insurance](https://insurance.concklin.com/life-insurance)
    - [Health Insurance](https://insurance.concklin.com/health-insurance)
- Resources
  
  Show submenu for Resources 
  
    - [Claims Resources](https://insurance.concklin.com/claims-resources)
    - [Cyber Resources](https://insurance.concklin.com/cyber-insurance-resources)
    - [Blog](https://blog.concklin.com/)
    - [Video Library](https://blog.concklin.com/video-library)
    - [Client Portal](https://insurance.concklin.com/client-portal)
- [Make A Payment](https://concklin.appliedpay.com/)

---

 Aug 16, 2018, 12:00:00 AM

# Vehicle Telematics: Myths, Facts, and Benefits

![Picture of Amanda Yaniz](https://blog.concklin.com/hs-fs/hubfs/Amanda%20Yaniz.jpeg?width=50&name=Amanda%20Yaniz.jpeg) [Amanda Yaniz](https://blog.concklin.com/author/amanda-yaniz)

Share: [facebook-f icon](http://www.facebook.com/share.php?u=https://blog.concklin.com/blog/vehicle-telematics-myths-facts-and-benefits.html) [linkedin-in icon](http://www.linkedin.com/shareArticle?mini=true&url=https://blog.concklin.com/blog/vehicle-telematics-myths-facts-and-benefits.html) [Twitter icon](https://twitter.com/intent/tweet?url=https://blog.concklin.com/blog/vehicle-telematics-myths-facts-and-benefits.html) [envelope icon](mailto:?body=https://blog.concklin.com/blog/vehicle-telematics-myths-facts-and-benefits.html)

Insurance companies have used vehicle telematics for [about two decades](https://cars.usnews.com/cars-trucks/how-do-those-car-insurance-tracking-devices-work) now as a way to bring more transparency and accountability to auto policyholders. Telematics are most commonly associated with the little modules that plug into your car’s Onboard Diagnostics Port (OBD-II), which relay driving data to insurance providers. Today, many insurance companies offer plug-and-play solutions and even apps that eliminate the need for modules altogether.

## Common misconceptions

Unfortunately, this technology has been met with a lot of confusion, and drivers have developed a number of widespread misconceptions. Some people might not quite understand how telematics function, so they make comparisons to other technologies that just aren’t accurate. Here are a few of the most [common myths](https://www.geotab.com/blog/top-myths-misconceptions-related-to-telematics/):

- **They track your every movement.** Telematics and GPS aren’t the same, which means your vehicle module isn’t tracking your whereabouts. Instead of monitoring positioning and movement like a GPS tracker would, a telematics module is collecting information such as speed, fuel economy, vehicle condition, airbag deployment, and more.
- **They void your warranty and cause problems.** Telematics modules will not void your warranty or cause problems for your vehicle in any way. Plugging one in doesn’t constitute tampering with or modifying your vehicle, and the sensors your insurance company provides are approved for use by automakers, as long as they meet OBD-II standards.
- **Using telematics means your insurance company doesn’t trust you.** There’s no question of trust when it comes to telematics. Most telematics programs are opt-in and used primarily for gleaning data from large groups of customers as a way to write better policies in the future.

With these common myths and misconceptions out of the way, it’s important to look at how vehicle telematics *actually* work and how the data they provide can benefit both drivers and insurance providers.

## **How does it work and who benefits?**

As mentioned, vehicle telematics are concerned with collecting data about policyholders’ driving habits. Each insurance company tracks its own proprietary data. However, most are concerned with the variables that impact how likely you are to be in an accident. Some [data points](https://www.naic.org/cipr_topics/topic_usage_based_insurance.htm) include:

- How long people drive in a single instance, how far they drive, and how fast — or slow — they drive
- The number of times drivers brake hard or engage anti-lock brakes, or when vehicles automatically trigger smart braking systems
- When airbags deploy or when vehicles register impacts that may not deploy airbags
- How long service lights remain on before drivers fix the problems

These data points all yield insights into driving habits. For example, if your telematics module registers lots of hard braking and abrupt stops, it may be a sign of inattentive driving. Likewise, traveling from one destination to another at a fast pace could suggest a tendency to speed.

All of this sounds like a way to penalize you, the driver — but, in fact, giving your insurance company this information is a good thing! For starters, if you’re already a good driver, it could result in lower monthly rates. Or, if you have bad habits, your insurance company can make you aware of them so you have the ability to lower your rates in the future.

Most insurers focus on the big picture: creating better policies. Combined with data from other drivers like you, telematics could be responsible for lower rates or fairer terms on future policies. Vehicle telematics create accountability for drivers and transparency for insurers.

[Auto Insurance](https://blog.concklin.com/tag/auto-insurance), [Personal Lines Insurance](https://blog.concklin.com/tag/personal-lines-insurance)

## Related posts

[![Man plugging in a telematics device into a car on the driver's side](https://blog.concklin.com/hs-fs/hubfs/Imported_Blog_Media/telemetrics.jpg?height=200&name=telemetrics.jpg)](https://blog.concklin.com/blog/what-are-vehicle-telematics.html)

[Auto Insurance](https://blog.concklin.com/tag/auto-insurance), [Personal Lines Insurance](https://blog.concklin.com/tag/personal-lines-insurance)

## [What are Vehicle Telematics?](https://blog.concklin.com/blog/what-are-vehicle-telematics.html)

![Picture of Amanda Yaniz](https://blog.concklin.com/hs-fs/hubfs/Amanda%20Yaniz.jpeg?width=50&name=Amanda%20Yaniz.jpeg) [Amanda Yaniz](https://blog.concklin.com/author/amanda-yaniz) 

 Feb 13, 2020, 12:00:00 AM

Many auto insurance providers offer vehicle telematics that offer you feedback on your driving...

[Read more](https://blog.concklin.com/blog/what-are-vehicle-telematics.html)

[![Semi trucks parked in a row](https://blog.concklin.com/hs-fs/hubfs/Imported_Blog_Media/canada-784392_1920_1.jpg?height=200&name=canada-784392_1920_1.jpg)](https://blog.concklin.com/blog/commercial-vehicle-telematics.html)

[Business Insurance](https://blog.concklin.com/tag/business-insurance)

## [A commercial vehicle telematics program is a great way to save money and reduce accidents](https://blog.concklin.com/blog/commercial-vehicle-telematics.html)

![Picture of Amanda Yaniz](https://blog.concklin.com/hs-fs/hubfs/Amanda%20Yaniz.jpeg?width=50&name=Amanda%20Yaniz.jpeg) [Amanda Yaniz](https://blog.concklin.com/author/amanda-yaniz) 

 Apr 5, 2021, 12:00:00 AM

Commercial Vehicle Telematics is a great way to monitor and improve your fleet’s driving habits and...

[Read more](https://blog.concklin.com/blog/commercial-vehicle-telematics.html)

[![toy cars on a table depicting different auto claims scenario, including engine fire, rollover, hitting a tree. One Toy car has a shield around it, symbolizing insurance coverage](https://blog.concklin.com/hs-fs/hubfs/Imported_Blog_Media/bigstock-177578086-1024x684.jpg?height=200&name=bigstock-177578086-1024x684.jpg)](https://blog.concklin.com/blog/3-must-haves-on-your-auto-insurance-and-3-should-haves.html)

[Auto Insurance](https://blog.concklin.com/tag/auto-insurance), [Personal Lines Insurance](https://blog.concklin.com/tag/personal-lines-insurance)

## [3 Must-Haves on Your Auto Insurance — and 3 Should-Haves](https://blog.concklin.com/blog/3-must-haves-on-your-auto-insurance-and-3-should-haves.html)

![Picture of Amanda Yaniz](https://blog.concklin.com/hs-fs/hubfs/Amanda%20Yaniz.jpeg?width=50&name=Amanda%20Yaniz.jpeg) [Amanda Yaniz](https://blog.concklin.com/author/amanda-yaniz) 

 Sep 27, 2018, 12:00:00 AM

Most of us rely on our vehicles to get to work, the store, and to social engagements every day....

[Read more](https://blog.concklin.com/blog/3-must-haves-on-your-auto-insurance-and-3-should-haves.html)

[![Concklin Logo](https://blog.concklin.com/hs-fs/hubfs/Concklin%20Logo.png?width=150&height=48&name=Concklin%20Logo.png "Concklin Logo")](http://concklin.com)

[facebook-f icon](https://www.facebook.com/ConcklinInsurance) [linkedin-in icon](https://www.linkedin.com/company/concklin-insurance-agency) [Twitter icon](https://twitter.com/ConcklinA) [youtube icon](https://www.youtube.com/channel/UC_HnJQ4S_USSxBJkauXwu6A)

- About Us 
    - [Our Story](https://insurance.concklin.com/about-us-who-we-are)
    - [Our Team](https://insurance.concklin.com/meet-our-team)
    - [Contact Us](https://insurance.concklin.com/contact-us)
- [Markets & Industries](https://insurance.concklin.com/industry-specific-insurance-programs) 
    - [Restaurants](https://restaurants.concklin.com)
    - [Franchised Restaurants](https://restaurants.concklin.com/franchised-restaurants)
    - [Contractors](https://insurance.concklin.com/general-contractor-insurance)
    - [Habitational](https://insurance.concklin.com/habitational-insurance)
- [Business Insurance](https://insurance.concklin.com/business-insurance-coverage) 
    - [Business Owners' Policy](https://insurance.concklin.com/business-owners-insurance-policy)
    - [Commercial Property](https://insurance.concklin.com/commercial-property-insurance)
    - [General Liability](https://insurance.concklin.com/commercial-general-liability-insurance)
    - Workers' Compensation
- [Personal Insurance](https://insurance.concklin.com/personal-lines-insurance-coverage) 
    - [Homeowners' Policy](https://insurance.concklin.com/homeowners-insurance)
    - [Personal Auto Policy](https://insurance.concklin.com/auto-insurance)
    - [Personal Umbrella Policy](https://insurance.concklin.com/personal-umbrella-insurance)
    - [Flood Insurance](https://insurance.concklin.com/flood-insurance)
- Life & Health Insurance 
    - [Life Insurance](https://insurance.concklin.com/life-insurance)
    - [Health Insurance](https://insurance.concklin.com/health-insurance)
- Resources 
    - [Cyber Resources](https://insurance.concklin.com/cyber-insurance-resources)
    - [Blog](https://blog.concklin.com)
    - [Video Library](https://blog.concklin.com/video-library)
    - [Client Portal](https://insurance.concklin.com/client-portal)
- [Make A Payment](https://concklin.appliedpay.com/)

---

REQUESTING COVERAGE DOES NOT GUARANTEE COVERAGE CAN BE PROVIDED.  COVERAGE CAN BEGIN ONLY WITH SPECIFIC STATEMENT BY A LICENSED MEMBER OF CONCKLIN INSURANCE AGENCY.

MISSTATEMENTS OR OMISSIONS OF RELEVANT INFORMATION CAN LEAD TO PRICE VARIATION OR EVEN DECLINATION OR RESCISSION OF COVERAGE.

NONE OF THE INFORMATION PROVIDED ON THIS WEBSITE IS A GUARANTEE THAT INSURANCE WILL BE PROVIDED OR THAT CONCKLIN INSURANCE AGENCY IS OBLIGATED TO PROCURE INSURANCE FOR ANY WEBSITE VISITORS.

240 S. WESTMORE MEYERS ROAD,  
LOMBARD IL 60148  
630-268-1600 | [CONCKLIN@CONCKLIN.COM](mailto:concklin@concklin.com)

[Privacy Policy](https://insurance.concklin.com/privacy-policy)

Copyright © 2026, Concklin Insurance Agency

```json
{
  "@context" : "https://schema.org",
  "@type" : "BlogPosting",
  "author" : {
    "@type" : "Person",
    "name" : "Amanda Yaniz",
    "url" : "https://blog.concklin.com/author/amanda-yaniz"
  },
  "dateModified" : "2023-06-28T15:40:35.958Z",
  "datePublished" : "2018-08-16T05:00:00.000Z",
  "headline" : "Vehicle Telematics: Myths, Facts, and Benefits",
  "image" : [ "https://blog.concklin.com/hubfs/Imported_Blog_Media/UBI-Device-2.jpg" ],
  "mainEntityOfPage" : {
    "@id" : "https://blog.concklin.com/blog/vehicle-telematics-myths-facts-and-benefits.html",
    "@type" : "WebPage"
  },
  "publisher" : {
    "@type" : "Organization",
    "logo" : {
      "@type" : "ImageObject",
      "url" : "https://blog.concklin.com/hubfs/Concklin%20Logo.png"
    },
    "name" : "Concklin Insurance Agency"
  }
}
```

```json
{
  "@context" : "https://schema.org",
  "@id" : "https://blog.concklin.com/#website",
  "@type" : "WebSite",
  "alternateName" : "Concklin Blog",
  "description" : "Insurance articles, risk management guidance, business insurance resources, personal insurance tips, cyber liability information, restaurant insurance insights, franchise insurance guidance, and coverage education from Concklin Insurance Agency.",
  "inLanguage" : "en-US",
  "name" : "Concklin Insurance Agency Blog",
  "publisher" : {
    "@id" : "https://insurance.concklin.com/#organization"
  },
  "url" : "https://blog.concklin.com/"
}
```

```json
{
  "@context" : "https://schema.org",
  "@id" : "https://blog.concklin.com/#blog",
  "@type" : "Blog",
  "description" : "Articles and resources from Concklin Insurance Agency covering business insurance, personal insurance, restaurant insurance, franchise insurance, cyber liability, claims, coverage questions, and risk management.",
  "inLanguage" : "en-US",
  "isPartOf" : {
    "@id" : "https://blog.concklin.com/#website"
  },
  "name" : "Concklin Insurance Agency Blog",
  "publisher" : {
    "@id" : "https://insurance.concklin.com/#organization"
  },
  "url" : "https://blog.concklin.com/"
}
```