Why is Data Privacy Essential to Telematics?

The global economy’s new currency is information. We anticipate having the appropriate information at the proper time to support decision-making or to offer a service. Automobiles are one example of such information-creating or information-exchanging settings. In essence, the automobile is a technology system to which mobile commerce services can be supplied. 

Guidance information, emergency roadside assistance, location-based services, digital information transmissions such as e-mail, infotainment, diagnostics and prognostics, and pay-for-use rental and insurance are all accessible today and shortly.  With all this telematics data, comes the need for telematics data privacy. Telematics systems collect a mountain of data and telematics data privacy is an important aspect of this field.

Telematics is the technology used to store and transmit information through various electronic devices. A car has a lot of electronics that it uses every day. For example, you can use your phone to call emergency numbers and this feature is necessary for your safety. However, when you use apps on your phone, each time the app opens up a new browser window or if it uploads files from one device to another like from your work computer to the home one or vice versa all this information is recorded by telematics data systems.

This blog intends to outline the meaning of telematics data and the benefits and challenges associated with it.

What is Telematics Data?

Telematics data is the big data that can be generated from things like vehicle speed, location, time, and even route taken. It is extremely valuable to companies that operate in the telematics market and it is held by them as a sensitive piece of information. The insurance industry regularly uses telematics devices on vehicles, which collect detailed information about their behavior and which can be used to infer driving habits. Health care companies use telematics devices to track patients’ physical conditions.

Telematics data is the currently unregulated collection of data as it travels over various mobile infrastructures. This growing movement of collecting massive amounts of data – including telemetry data, GPS information, and much more – has taken off over the last few years due to regulatory bodies that have recently opened up access to this technology. This has given rise to the need for advanced telematics data privacy.

How does Pooled Telematics Data Benefit Various Industries?

Fleet telematics systems is a modern and thriving sector that provides solutions in a variety of formats for both consumers and manufacturers. Today’s consumers, on the other hand, expect even more from their automobiles; in many situations, they expect their car to have built-in functions similar to smartphones or other connected gadgets. 

Some advantages of pooled telematics data include: 

  • When telematics systems get more complex, they will most likely be able to provide vehicle owners with remote diagnostics, warning them if their vehicle requires corrective maintenance services. 
  • Not only can telematics be used to give better service to clients, but it can also provide relevant telematics insights for insurance providers or leasing agencies that require information about how vehicles are utilized regularly.
  • Auto insurance prices are frequently dependent on previous driving behaviors and incidents. With telematics devices, you can discover more about your vehicle’s performance, such as how frequently it accelerates or brakes hard, how fast it corners, and where it drives the most. You can use this data to evaluate your rates to those of other drivers who drive comparable vehicles.
  • Some telematics systems monitor driving behavior and deliver real-time feedback via connected mobile devices such as smartphones and wearables. Others employ more typical sensors mounted on a vehicle. Because driving habits are such a crucial component of an individual’s health and safety, it stands to reason that many consumers are prepared to pay for some assistance in tracking their behaviors.

What are the Potential Risks Associated with Shared Telematics Data Privacy?

  • Data Integrity and Authenticity

Because mobile commerce services such as pay-for-use insurance have a direct impact on users’ income, some customers may be motivated to cheat by supplying incorrect information. The obligation to collect data in a vehicle under the customer’s entire control adds to the service providers’ concerns about data quality and authenticity. 

Unlike transactions that generate data as a result of direct user intervention with institutions such as banks, bookstores, or online websites, the private data utilized in vehicle telematics transactions is generated independently of user interaction with the service provider. 

  • Flexibility

A car has a substantially longer average lifespan than ordinary IT technology. Telematics service providers must provide flexible and cost-effective choices for servicing older vehicle models to gain a big portion of the market. The architecture should reflect this flexibility. 

Furthermore, security features are often selected based on return-on-investment analyses that balance the value of the protected information and the likelihood of loss with the cost of providing a telematics data privacy mechanism.

  • User Interaction

It is notoriously difficult to evaluate the legality of data access (from a telematics data privacy standpoint) automatically. As a result, most systems submit a request to the data subject and request approval if the request is not already covered by the user’s choices. This option is normally unavailable in a telematics domain since the driver cannot be distracted from the boring chore of approving a data request.

What are the Best Practices for Data Governance?

While every business is unique, there are some standard procedures to aid you with data governance.

  • Data governance consists of people, processes, and technology. If you find or engage the proper people for your solution, they will assist in the development of your processes and the acquisition of the necessary technology.
  • When making any modification, you should first measure the baseline to justify the outcomes. Collect those measures early on, and then chart each step along the way. Your measurements should demonstrate overall variability and serve as milestones to ensure the processes are realistic and effective.
  • Whether you’re just getting started with data governance or have been doing so for years, engaging early and often is critical. Proper and reliable communication aids in demonstrating the strategy’s effects, from emphasizing triumphs to restructuring after a setback.
  • A data governance strategy is not a one-time undertaking. There is no definite finale or end date. Instead, it is a continuing practice that has been implemented as a regular policy. Data governance, like dress regulations or leave policy, gets ingrained in your organization’s culture.

Significance of Pre-Approved Authorization for Telematics Data Privacy

With the Indian automobile sector poised to deliver high-end technology-driven vehicles, requirements on personal telematics data privacy that are comparable to regulatory requirements in jurisdictions with more evolved data protection laws are required. Until then, it is critical to impose contractual duties on automakers, original equipment manufacturers (OEMs), and dealers of self-driving cars equipped to keep owners’ personal information to maintain data security.

Another step toward ensuring the telematics data privacy of vehicle owners’ information could be to obtain specific consent for data collection and processing or to give auto owners the ability to opt-out of sharing personal data and to enable data deletion, similar to the right to be forgotten enshrined in personal data protection legislation in jurisdictions such as the European Union and India. Although a few global car manufacturers allow consumers to opt-out of data collecting, the road to securing the privacy of such data in India is bound to be long given that personal data protection rules in India are still in their infancy.


Data implies power, but power entails significant responsibility in terms of security. No firm is immune to cyber attacks, and the resulting harm may be irreversible. Understanding hazards is crucial at this point. Aside from legal duties, businesses must implement a strong IT security system and a thorough data protection compliance structure to prevent breaches.

The good news is that many of the systems currently on the market are easy to set up and use, with little or no changes needed to your vehicle. However, it’s important to stay up-to-date on the latest technology and understand what’s available from a privacy perspective. By investing in options such as LocoNav’s telematics system, you’ll know exactly what telematics data privacy is and how your telematics will be used, and you can make an informed decision about the right option for your needs.

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