Friday, 18 January 2019 09:03

The Impact of Telematics and Connected Vehicles on the Collision Repair Industry

Written by
Mike Anderson of Collision Advice Mike Anderson of Collision Advice


About five years ago, Mike Anderson, owner of Collision Advice, was at a conference where several vehicle manufacturers were in attendance.


The OEMs discussed FNOL (First Notice of Loss) and how those in an accident typically call their insurance company first and are then referred to a DRP shop if they don’t already have a collision repair shop in mind.


While this may be the process currently being followed after a collision, that is expected to change over the next few years. Instead of the driver contacting an insurer, the vehicle will utilize telematics and connected car systems with Internet access. Vehicles will be the ones to notify the OEM when an accident occurs, and a voice will be heard over the car’s sound system to ask if anyone is hurt and if the driver has a body shop to go to.


“OEMs will have the ability to communicate with the consumer and assist with FNOL,” said Anderson. “Sometimes they will be the first point of contact, and in other cases, the OEMs may partner with insurers.”


Anderson is often asked if vehicles currently have the ability to do this, and if so, what its impact on the industry will be. As a result, he recently discussed the impact of telematics and the connected car during a CIECAst webinar.


“It’s really important that all stakeholders, whether that’s an insurance company, a shop, OEM, parts vendor or distributor, realize we live in a very connected world,” he said.


He explained to webinar attendees that the age of the connected car began in 1996 with General Motors’ introduction of OnStar, the first wireless, in-car driver assistance system. Since then, the OEM has processed 5.5 million emergency services calls and 270 million turn-by-turn navigation requests and assisted 390 million with vehicle diagnostics.


Twenty years after the introduction of OnStar, 250 companies joined the connected car and telematics space with over $38.7 billion in funding. By 2020, Anderson said, analysts project that the globally connected car industry will be a $141 billion market.


Telematics and connected car systems are expected to allow OEMs the ability to provide such services as vehicle diagnostics, roadside assistance, mobile WiFi and automatic accident messaging.

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