The RAC has launched a telematics service, which aims to enable fleet managers and business owners of all sizes to save time and money by efficiently monitoring each vehicle in their fleets.

The RAC Telematics technology, allows vehicles to be tracked remotely, opening up an extensive range of benefits for businesses such as being able to track the location, mileage and driver behaviour of each vehicle.

Another key benefit, says the RAC, is the accurate ‘taxman-friendly’ mileage records which can be used to assist with business and private mileage expense claims.

The size of a matchbox, the in-car unit communicates via the mobile data network, enabling the RAC or fleet managers to pinpoint the exact location of any vehicle in the event of a breakdown or accident.

The company claim that operational time and money savings created by RAC Telematics could save businesses with fleets as small as 15 vehicles in excess of £23,000 per year.

In addition, with the TUC estimating that road traffic accidents cost businesses £3.5bn per year, it says that telematics could reduce collisions by a third through drivers knowing their behaviour is being monitored, thereby saving the UK economy more than £1bn per year.

The RAC Telematics ‘driver score’ function can also be used by firms to save up to 15% on annual fuel bills as it allows fleet managers to monitor how efficiently their vehicles are being driven.

Using the information gathered, they are well-equipped to encourage vehicle users to drive more efficiently by accelerating and braking less sharply and using the vehicle’s own momentum to best advantage.

Available from just a few pence per day per vehicle, the in-car RAC Telematics device can also help to lower insurance premiums as it gives insurers the ability to use data on driver behaviour, car condition and mileage to more accurately tailor premiums as well as helping to decide who is at fault in the event of a collision.

In the coming months the RAC will unveil additional diagnostic features which will warn of certain malfunctions or underperformance issues such as imminent battery failure. This will enable the RAC response team to alert the fleet manager of a potential fault or problem and suggest an appropriate and timely repair.

It will also make it possible to identify mechanical faults and diagnose the cause of some breakdowns without having to send out a mechanic.

RAC director of business services David Aldridge said: “The RAC is dedicated to developing technology that makes significant difference to a business, both on an operational level and to the bottom line.

“Our telematics technology offers fleet tracking and can even reduce the risk of accidents by up to 30%, which means we can keep businesses moving on the roads more efficiently than ever before.

“The service offers a variety of benefits that deliver a great value proposition for companies of all sizes, from a fleet of just a few cars to national fleets of thousands. We believe RAC Telematics offers the complete fleet management solution.”

The telematics product launch is part of a wider suite of new business services being launched by the RAC in 2013.