Your Guide To Telematics System Cost

Reviewed by
Vedant Khamesra
Published date:
November 15, 2022

Your Guide To Telematics System Cost

Any fleet manager knows that fleet management is no easy task. If your business is responsible for operating and managing a fleet of vehicles, fleet tracking technology is an essential tool for optimizing your workforce.

How does fleet tracking work with telematics? Beyond simple GPS tracking, telematics combines navigation, security, safety, and communication technology that automates your fleet capabilities. 

As with any tool, there is a GPS fleet tracking cost to consider.

Most telematics packages will come with a hardware cost ranging from $50 to over $200. You will also need to consider any installation fees or monthly subscription fees (which can range from $15 to $40 per month) associated with your system. 

In this guide, we’ll start by exploring telematics packages and break down the telematics system cost structure.

What Is a Telematics Package?

Before answering how much does telematics cost, it’s worth answering the question, “What is telematics?” Telematics combines two concepts:

  • Telecommunications – Refers to things like phone lines, cables, and the internet used to transmit data

  • Informatics – Refers to computer systems used to analyze data

By combining these two concepts, you get a system of powerful tracking tools that can compile data on how your fleet is performing and provide analysis that allows you to optimize that performance.

To accomplish this, telematics can be broken into two basic elements:

  • Hardware – These are all the physical tools you will need to set up your data collection. This may include GPS receivers, dashboard cameras, and electronic logging devices. In newer vehicles, some of these devices may come pre-installed. Otherwise, you will have to purchase them separately and install them in your fleet.

  • Software – This is where a monthly subscription fee may come in. Software packages provide you with automation and analysis tools that help you interpret the data that’s collected by your hardware.

The combination of these two systems can provide useful knowledge that will allow you to better manage your fleet. Just some of what a telematics system provides includes:

  • Real-time location information
  • Vehicle usage hours
  • Vehicle status
  • Speed of the vehicle
  • Idle time
  • Driving information (such as unnecessary braking or hard turns)
  • Fuel status


Costs of Telematics

How much does fleet tracking cost? When it comes to cost estimates, you should think of your telematics system as three separate costs:

  • Hardware
  • Software
  • Installation

Let’s look at the costs of each separately.

Hardware Costs

The type of hardware you choose to install can greatly affect the price you will have to pay. A basic GPS tracker may only cost you $50 upfront but will not necessarily have all the features of a more expensive piece of equipment. 

Also, you can opt for hardwired equipment (which will often have more features) or plug-and-play (with no installation costs).

Depending on your choice, the costs can range from around $50 to well over $200. A good starting price for a basic setup will likely be somewhere around $100.

GPS Fleet Tracking Software Costs

Without the software to analyze your data, your telematics system won’t be worth much. That’s why it’s important to find software that is: 

  • Intuitive to use
  • Easy to train employees on
  • Compatible with your current systems

Most software will be sold as contracts with a monthly cost. While the cost is monthly, you will likely be looking at 1 to 3-year contracts.

As far as what those monthly costs will be, it again depends on which system you choose. Some companies may offer around $15 per month, while others with more features (like Verizon Connect) will charge around $40 per month.

Installation Costs

The costs to install your hardware into your fleet vehicles can also vary widely depending on where you purchase your hardware and the type of hardware you buy. For instance, if you only buy plug-and-play hardware, then it’s very likely you’ll have no installation costs.

If you opt for hardwired systems, you may need to have a professional install them for you. The costs for this installation will vary depending on the hardware and the type of installation.

However, you can keep the costs down with:

  • Free installation options – Some companies will offer free installation of each tracking device as part of longer subscription packages. By contracting with a company for one year or longer, you may be able to avoid any installation costs. Just be sure that the subscription offers all that you need, as you’ll be locked in for the duration of your contract.

  • Self-installment options – You can also opt to self-install your tracking device. Many companies will provide tutorial videos or manuals to help you with this. While this option will save on installation costs, you’ll likely need some expertise in what you’re doing. Incorrect installation can affect data collection and lead to greater costs in the future.


Reduce Your Fleet Costs with AtoB

What are some of the benefits of fleet telematics? While telematics does come with upfront and recurring costs, often the benefits it provides will more than make up for the price tag. A good telematics system can help you save money through improved performance, safety, vehicle maintenance, and fuel efficiency.

Fuel cards from AtoB can also help you save money on fleet operations. 

Our fuel cards have no hidden fees. No setup fee, no per-transaction fees, and no out-of-network fees. You simply get an AtoB fuel card powered by Visa that you can use for discounted fuel anywhere (with no discount limits).

If you’re looking to save money on your fleet, contact us today.


GPS Insights. What is the Cost of Telematics? 

Verizon Connect. What is Telematics?  

Motive. What are the costs associated with vehicle telematics? 

Business Fleet. How Much Does a GPS Tracking System Cost? 

Business News Daily. Best GPS Fleet Tracking Software and Systems for 2022.

Get started with AtoB

Reviewed by

Vedant Khamesra

Vedant Khamesra is the driving force behind product management at AtoB. Specializing in strategic partnerships, SMB solutions, and new product development, Vedant seamlessly navigates P&L responsibilities while leading product execution and strategy. He is fueled by AtoB's mission to empower truckers and fleets with intelligent financial tools and services, making their lives easier and more rewarding.

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