Complicated stuff in simple words

What is Internet of Things?

Internet of Things is a next level in the development of Internet. The purpose of Internet of Things is to unite all things connected to the Internet into a single network to exchange information between each other. This process is managed automatically without human intervention. One of the brightest manifestations of this tech trend is the concept of Connected Car.

A car is connected to what?

A car is connected to the Internet. This allows a car to set up wireless connection both with devices inside a car as well as external networks, like smart house or cloud services providing information about traffic or collecting car usage data for remote diagnostics of malfunctions.

What is
transport
telematics?

It is a technology that allows the collection of data about car movement in real time. For that the car is equipped with a special device with built-in GPS / Glonass module and GSM receiver. Similar systems are widely used by logistics companies to monitor the movement of their vehicles as well as companies providing antitheft services.

What are the types of telematics devices?

Devices that collect and transmit car data are called telematics devices. Most common types of devices are:

1) OBD unit which is installed into the car’s diagnostic connector,

2) black box - hidden installation,

3) battery device is installed on vehicle’s battery,

4) and smartphone - special mobile apps that use built-in accelerometer, GPS module and SIM card.

What is the difference between these devices?

Telematics devices are different in terms of installation type and data precision:

1) Smartphone is the simplest and the least reliable telematics data device. All you need is to install a mobile app on your smartphone. However, the accuracy and verification of data received this way is questionable.

2) OBD is a happy medium among telematics devices. It is easy to install into a built-in OBD-2 connector which is available in every car and guarantees accurate and reliable data.

3) Battery device is also easy to install and can read only a limited amount of information as it is not connected to CAN bus.

4) Black box is installed by experts in service center or in an assembly line and guarantees maximum reliability of telematics data. This type of installation is often used in anti-theft systems.

What is OBD-2 connector and where can I find it?

It is a universal connector available in every car that was manufactured after 1996. In most cases it is located to the left under the steering wheel and is used to diagnose malfunctions and read errors. With an advent of telematics services OBD-2 connector is used to install telematics devices.

This is how it works: OBD-2 is directly connected to CAN bus that contains all the information about car and its technical condition. When the device is connected to OBD-2 connector it reads all the information it needs and transmits it to server or phone for further processing and use.

What is CAN bus?

CAN bus is an information artery of car. Modern car is equipped with multiple computers that are responsible for various functions of the car. All of them are connected and exchange information and commands between each other through CAN bus. Connecting to CAN bus allows you to get all the information about technical condition of the car and its use. Data received this way is later submitted into telematics platform.

How does telematics platform work?

A telematics device is installed in the car and reads information of the car. These data are transferred online to server where they are kept and processed. Then, the processed data is received by end users who use the data as required. For example, insurance companies use telematics data about their client’s driving style to create an individual comprehensive insurance rate, while car dealers use information about mileage and technical condition of the car to make sure that maintenance or repairs are done in time.

What is smart insurance?

Smart insurance is a comprehensive insurance where insurance company calculates its rate individually for every client based on car usage. Currently there are two main types of smart policies:

PAYD (Pay as you drive). This type has mileage limit, i.e. insurance validity is limited not by time interval but mileage, and usually you can buy extra miles.

PHYD (Pay how you drive). This type is based on driving style and car usage. In calculating a rate insurance company can consider such factors as aggressive driving, area and time when car is used.