VEHICLE INSURANCE TRENDS IN THE AMERICAS AND AUSTRALIA

Telematics solutions are transforming how vehicle insurers assess risk and interact with their customers. Instead of relying solely on fixed rates, many companies are adopting behaviour-based models, where real driving data can help determine insurance premiums. What is more, access to accurate driving data streamlines claims, reduces fraud, and encourages safer driving.

HOW TELEMATICS IS CHANGING VEHICLE INSURANCE?

One of the biggest shifts in vehicle insurance is the move from flat-rate pricing to behaviour-based models.

How does user-based insurance (UBI) work? Instead of relying only on traditional risk categories, insurers can use actual driving data collected by GPS trackers to assess individual risk more accurately and develop personalised insurance offers.

Reliable and precise telematics data can also support faster claim resolution and help reduce fraudulent or exaggerated claims. At the same time, advances in artificial intelligence make it easier to analyse large volumes of driving data and identify patterns relevant to risk assessment.

The shift is accelerating, as in some regions, governments are introducing regulations that make driver monitoring mandatory. Thus, accurate data that speeds up claim resolution and reduces fake cases is needed more than ever.

TELTONIKA GPS TRACKERS FOR USAGE-BASED INSURANCE

To support the evolving market needs, Teltonika introduced FTx88 series – insurance-focused GPS trackers designed for reliability and simplicity. Moreover, AI-powered damage detection solution built on the FTC887 and trained on more than 1 billion kilometres of real-world driving data can automate parts of the insurance claims process, from event detection to documentation. This helps businesses reduce manual inspections and accelerate damage assessment procedures.

FTx88 series devices include all the necessary hardware and firmware features for usage-based insurance (UBI), including trip tracking, eco-driving evaluation, speeding and idling detection, and crash reporting. The trackers are also battery-mounted, IP69K-rated, and highly power-efficient.

As for insurers, accuracy, reliability, and flexibility are essential. Teltonika provides the required accessories directly from its manufacturing facilities, offers custom firmware development for specific project needs, and provides continuous technical support to help ensure long-term performance.

INSURANCE TRENDS IN AMERICAS: PRIORITISING RELIABILITY AND EASY INSTALLATION

Driven by demand for plug-and-play solutions, the insurance telematics market continues to expand in both South and North America. “Local companies are looking for GPS trackers that can be installed quickly without complex wiring or setup,” explains Gediminas Leknickas, continental development coordinator for Americas at Teltonika.

“The installation of a wired GPS tracker can cost up to 150 USD, so a simple process is crucial. Moreover, not everyone can connect the wires correctly and finding an experienced specialist can be difficult. With FTx88 series, companies can avoid additional spending and do not need an expert, as almost anyone can install these devices,” Gediminas explains.

Another important requirement for insurers is accurate odometer data. The ability to capture real OEM odometer readings is particularly valuable for pay-as-you-drive models, where mileage precision directly influences pricing. Although plug-and-play devices such as FTx88 series cannot read OEM data directly from the vehicle, their improved GNSS performance – with twice as many visible satellites – enables precise virtual odometer calculations. In practice, this provides mileage accuracy comparable to data read directly from the vehicle.

Eco-driving features such as monitoring harsh braking, acceleration, and idling are increasingly popular, enabling insurers to design reward-based programmes that promote safer driving. “Features offered by FTx88 trackers help insurers reduce claims and encourage responsible behaviour, and at the same time create loyalty among drivers who see real benefits from their safe habits,” Gediminas adds.

WHAT INSURERS IN NORTH AND SOUTH AMERICAS VALUE IN TELEMATICS SOLUTIONS?

• Fast installation without complex wiring

• Lower deployment and installation costs

• Accurate mileage calculations for pay-as-you-drive models

• Driver behaviour data for risk assessment

• Eco-driving features that can support reward-based insurance programmes

  
  

AUSTRALIA – EMERGING OPPORTUNITIES IN USAGE-BASED INSURANCE

Australia’s insurance-telematics sector is showing strong growth potential. “UBI adoption is rising rapidly, with some reports indicating nearly 25% growth,” says Letitia Gozman, regional marketing manager at Teltonika. “While the market is less mature than in the United States or Europe, insurers are actively exploring telematics solutions to differentiate their offerings and manage risks more effectively.”

This momentum comes at a critical time. Australia is facing a worsening road-safety situation, with more than 1,300 fatalities recorded in 2024 and an 18.5% rise in deaths since the launch of the National Road Safety Strategy 2021-2030. Many incidents involve young, inexperienced drivers, underlining the need for targeted, behaviour-focused measures.

TELEMATICS FOR MORE PERSONALISED INSURANCE

According to Letitia, insurers in Australia also face unique structural challenges, including rising customer turnover and complex state-specific compulsory third-party insurance rules. At the same time, Australians are dealing with steep increases in premiums, which average around A$929 per policy but can reach several thousand dollars in major cities. Cost-of-living pressures have pushed many drivers to downgrade or cancel their cover, leaving a growing share of vehicles uninsured or underinsured.

“Telematics provides a strategic advantage by enabling personalised premiums that reward safe driving, helping reduce churn and improve satisfaction,” Letitia explains. It also supports wider affordability goals by improving risk differentiation, reducing high-severity claims and easing upward pressure on premiums over time.

Fraud prevention is another notable benefit. “By collecting precise crash data, GPS position and driver behaviour before an incident, insurers can reduce fraudulent claims and process legitimate ones faster,” she says. “This transparency benefits both insurers and customers.”

OPPORTUNITIES EXTEND BEYOND PERSONAL INSURANCE

Looking ahead, Letitia sees opportunities beyond personal insurance. “Commercial fleets offer a natural entry point for telematics, allowing insurers to lower claims and enhance road safety at scale. However, the biggest growth potential lies in the consumer market, as awareness of UBI products increases and personalised risk assessment becomes standard practice.”

She concludes: “With reliable, feature-rich devices that integrate seamlessly into backend systems and enable real-time driver scoring, Teltonika is well positioned to support Australian insurers as they expand their telematics programmes.”

WHAT CAN TELEMATICS SERVICE PROVIDERS LEARN FROM THE AUSTRALIAN MARKET?

• Driver behaviour data can support more personalised UBI programmes

• Accurate crash and GPS data can improve claims handling and fraud detection

• Telematics can help insurers reward safer driving and improve customer retention

• Commercial fleets provide a practical entry point for insurance telematics

• Scalable solutions should support both fleet and consumer insurance programmes

BUILD SMARTER INSURANCE TELEMATICS SOLUTIONS WITH TELTONIKA

Looking to develop usage-based insurance, driver behaviour monitoring, or automated claims solutions? Contact our sales team to discuss how Teltonika GPS trackers can support reliable data collection, easier deployment, and scalable insurance telematics programmes across different markets. To learn more about trackers for the insurance market, read our dedicated use case.