Why Telematics Technology & Historical Data Is A Key Component Of Equipment Warranties & How It Benefits You
Are telematics a boon to your business? Or is capturing all that historical data just another excuse for OEMs and after-market insurers to deny coverage under their equipment warranties? It’s time to dispell the negative myths about telematics.
Equipment warranties – both new and extended warranties – do, indeed, state that coverage may be denied if the historical data amassed by telematics indicates the equipment has been used in an abusive way or the machine hasn’t been properly maintained. Considering the vast supply of information available, many owners have felt justifiably concerned about losing their valuable insurance coverage. You may be one of them.
The truth is, though, it’s not in an OEM’s best interest to use historical data as a punishment.
If a manufacturer consistently denied warranty coverage based on telematics data, that reputation would quickly spread throughout the industry. Buyers would look elsewhere for their next machines.
Data is supposed to be helpful.
For years, equipment owners have complained about the complexity of telematics and the time-consuming process of gathering data from multiple technology sources and then manually assembling the information into usable form. Data was available, but for many it was more of a hassle than a business booster.
In fact, there was too much information. The seemingly endless barrage of fault alerts from telematics left most customers confused instead of informed. Which among those hundreds of reported anomalies are significant enough to follow up?
Today, the industry is implementing a new telematics plan based on uniform standards. Data can now be collected from multiple, even disparate, sources and seamlessly imported into your enterprise data base for easier comparison.
Correlating historical data with equipment warranties offers distinct advantages for everyone.
Competition is intense among OEMs to develop new equipment that offers greater performance at lower operation cost. All those tiny details collected via telematics – not just from your machines but thousands of others around the world, working in every possible type of conditions – provide engineers a wealth of information. By plotting patterns, they can see where improvements need to be made.
Better machinery means you’re less likely to need your equipment warranties in the first place.
Advance warning of impending problems is a key value of telematics. And, yes, there is a lot of data reported. But you don’t have to evaluate it on your own. Your dealer remotely receives that information, too. On the simplest level, that enables them help you stay on track with each machine’s maintenance schedule. On a higher level, your dealer’s technicians have the training you don’t have to effectively interpret fault alerts and other data. They can help you put that data to use to manage your business more productively and profitably.
Consider just these three advantages:
- Reducing idle times can save you an outstanding amount of money, in wasted fuel and premature machine wear-and-tear. And if your warranty is based on machine hours, you’re wasting warranty coverage, too.
- Telematics increase security, reducing your risk of losing a machine.
- You’re better protected in the event your equipment develops a problem after your original warranty has expired, if past historical data shows the problem started to develop earlier.
Telematics will continue to evolve, probably in ways we cannot even foresee. OEMs will continue to use historical data to deny claims on equipment warranties if they can see a pattern of flagrant violations. But you don’t mistreat your equipment because that would cost you in multiple ways. And if an operator isn’t driving the machine as kindly or efficiently as possible, you can see that and fix the problem.
The reality is, historical data gathered by telematics benefits everybody – OEMs are able to build a better product, and you can realize a lower total cost of ownership.