Sell more, cover better as telematics get smarter

Image shows the words, "Telematics Boost." — Higher-than-expected usage or mileage for small business telematics users is one sign of a need for increased coverage.

By Anna Baluch

Eighty-eight percent of fleets reported they use telematics for safety, yet only 30% share their data with insurers, according to SambaSafety’s 2025 telematics report.

This underscores a major opportunity for advisors to take advantage of data that often goes unused.

For small business clients, telematics data is invaluable as it can reveal hidden risks and coverage gaps. Savvy advisors can use these insights to recommend the right policies and cross-sell additional coverage, reducing risk exposure and improving the client’s bottom line.

By turning telematics insights into actionable recommendations, advisors can help clients optimize coverage and protect their assets.

How telematics shapes insurance pricing

Small business telematics data helps insurers refine their exposure analysis from proxy-based underwriting to individual behavior-based underwriting. It allows them to get more aggressive when pricing a policy.

“Most carriers will add a discount on top of their best proxy-based price and if the telematics, for example, show the individual’s driving behaviors are too risky due to harsh braking or acceleration, or speeding, they’ll simply remove the telematics discount,” explained Ryan King, division revenue leader at World Insurance Associates.

Many clients perceive telematics pricing as a double-edged sword, concerned that dangerous driving behaviors could lead to higher rates or reduced coverage.

“We see far too many clients pass on telematics discounts because they don’t think the savings is worth a 'bad risk' label. The reality, however, is that it can only improve their pricing and insurability—it doesn’t hurt it,” King said.

Behavioral patterns that indicate underinsurance

Higher-than-expected usage or mileage for small business telematics users often signals a need for increased coverage.

“They often think they’re driving in a local radius when in fact the telematics data shows that they’re driving much more and much further," King said. "Due to that higher exposure, they could benefit from higher auto limits and/or an umbrella policy."

King also noted that some clients truly believe their driving behaviors are perfect, leading to overconfidence and underinsurance.

“It’s not uncommon for telematics data to reveal they’re not as safe behind the wheel as they thought they were,” King added.

Leveraging driving data to encourage smarter decisions

Telematics can be very useful in reframing pricing and coverage options during client discussions.

“If the drivers are shown to be very safe, then the client can comfortably take on higher deductibles and capture the premium savings," King said. "Alternatively, poor drivers highlight the need for better training and possibly higher limits. The savings from using telematics need to be part of the equation as well."

When considering telematics-based pricing, the ultimate goal is to support the client’s decision-making process. Simply showing them the data isn’t enough. Advisors must help them interpret it.

Remember that telematics measures driving inputs but it doesn’t protect against financial loss like insurance does.

“It’s a tool to help clients reinforce positive behaviors on the road and improve those that could increase risk and costs,” King said.