Every second matters when an accident happens. Delays add confusion, cost, and frustration for policyholders and insurers. Telematics is reshaping that critical moment not just by delivering data, but by offering clarity and speed to the claims process.
Telematics Starts Where the Claim Begins: First Notice of Loss
Traditionally, the claims process begins with a call from the driver. That delay between the crash and the FNOL (First Notice of Loss) can cost hours or days. With telematics, FNOL starts the moment the incident occurs. Sensors within the vehicle detect the event and transmit key details in real time: location, severity, time, and speed. Insurers can begin triage immediately, dispatching help, starting repairs, and informing their response with data, not guesswork.
The Insurance Research Council found that telematics programs can reduce accident frequency by up to 20% by encouraging safer driving and expediting claims.
Context Beats Opinion: Telling the Real Story
At Xtract, we turn telematics data into visual reconstructions. Every crash has competing narratives. Our platform uses GPS, accelerometer, and vehicle sensor data to build a second-by-second timeline that shows what really happened.
This improves confidence in decision-making, reduces reliance on memory, and speeds up investigations. Research in the ASTIN Bulletin shows combining telematics with traditional claims data strengthens both risk classification and reconstruction. Xtract leverages data fleets that already collect no extra hardware, no delay, just fast, actionable insight.
Protecting Drivers. Reducing Liability.
Accurate reconstructions are especially vital in commercial lines, where litigation and injury claims are rising. A RAND study found that award sizes in personal injury cases have increased 7.6% per year over the past decade. But when telematics or dashcam data is available, drivers are exonerated 63% of the time.
Even without cameras, telematics can show if a driver swerved to avoid an accident or was within the speed limit in contributory negligence cases. These data points help establish facts, potentially saving thousands per claim.
Faster Claims for Everyone
When insurers integrate telematics data into their claim workflows, results improve. The European Commission reports telematics can cut claim costs by up to 15%. Carriers like AXA and Allianz using platforms like Xtract report faster decision-making thanks to centralized, time‑stamped crash data.
Policyholders notice, too. A survey by The Zebra, found 74% of drivers are open to telematics-based insurance if it leads to a faster, more transparent process. In a digital-first world, speed equals satisfaction.
Privacy: A Smarter Approach to Sharing Data
Privacy remains a barrier. Many drivers resist what feels like 24/7 tracking. But insurers are evolving.
Xtract CEO Michael Flanagan recently shared that the industry is shifting to a “just-in-time” model collecting crash data only with consent and only when it’s needed. This balances transparency with trust and will unlock broader adoption challenges.
What’s Next?
Nearly 90% of new vehicles come equipped with connected tech. Telematics is no longer an add-on it’s becoming core to claims.
Solutions like Xtract don’t replace adjusters. They deliver data faster so teams can act confidently and fairly. As expectations rise and margins tighten, connected claims strategies will define the insurers who stay ahead.
The crash may be inevitable. Confusion afterward doesn’t have to be.
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