As vehicle incidents grow more frequent and disruptive, safe driving solutions and driver management have become a top priority for today’s construction businesses. Telematics systems are now central to many safety strategies, particularly among businesses operating 20 or more fleet vehicles. Nationwide’s recent review found that over half of these businesses have adopted a telematics program. However, many are still falling short of realizing the full potential of these tools, often failing to leverage the data to improve driver behavior and drive cost savings.
With nearly 1 in 3 construction business owners citing rising costs as a top business risk in 2025, the need for cost-effective safety solutions continues to grow in importance. On average, construction firms dedicate close to 20% of their annual budget to safety initiatives — yet many continue to underuse one of the most impactful resources available.
When implemented effectively, telematics systems can deliver significant returns. A recent analysis of Nationwide’s construction customers found that businesses effectively using telematics to actively monitor and coach drivers saw a 30% or greater reduction in their commercial auto loss ratios compared to those that don’t. This is a major win, considering commercial auto remains one of the most expensive insurance coverages for construction firms today. Minimizing accidents is a fundamental component of effective risk management and should be prioritized by all construction companies.
Common Pitfalls When Implementing Telematics Into Construction Operations
To unlock the full value of telematics, construction businesses need to go beyond installation and focus on implementing the insights into day-to-day operations. But implementation requires consistent driver engagement and a clear strategy for turning data into action.
Here are some of the most common pitfalls we see and how to avoid them:
1. Choosing the Wrong System
Select a telematics platform that aligns with your operation’s size, goals and workflow. Insurance carriers and brokers can often help guide this decision.
2. Poor Onboarding
For buy-in and success, drivers and managers need to understand how the system works and how it benefits them.
3. Using It Only for Discipline
Focus on coaching rather than punishment. Telematics should be a tool for improvement, not just enforcement.
4. Overlooking Recognition
Reward high-performing drivers to reinforce positive behaviors and build a culture of safety.
5. Losing Momentum
Don’t let telematics fade into the background after launch. Instead, make it a part of ongoing operations through consistent use and monitoring.
6. Lack of Accountability
Ensure managers are responsible for reviewing data, coaching drivers and using insights to guide improvements.
7. Not Setting Up Automatic Alerts & Reports
System-generated alerts and reports make it easy for managers to receive safety information and take action.
Realizing the Full Potential of Telematics
Understanding the full scope of what telematics systems can do is key to maximizing their value. At their core, they’re designed to help identify and reduce risky driving behaviors. Doing so can lead to the following outcomes:
- A safer work environment for employees
- Fewer accidents and violations, such as speeding tickets
- Lower accident-related costs and improved accident investigations
- A stronger public image, especially for branded vehicles
In addition to improving safety, telematics can help enhance operational efficiency and customer service by:
- Providing real-time visibility into vehicle locations
- Optimizing routes for fuel and time savings
- Reducing wear and tear on brakes, tires and suspension systems
- Monitoring vehicle health and maintenance needs to reduce unexpected downtime
When paired with other driver safety technologies, like dashcams and continuous motor vehicle record monitoring, construction fleets can have a comprehensive, tech-enabled approach to reducing roadway incidents and understanding what’s truly happening behind the wheel.
Preventing Unauthorized Personal Use of Company Vehicles
Many contractors and service organizations allow staff to take vehicles home at the end of the day. While this can be beneficial in enabling drivers to head directly to jobsites in the morning, the practice also creates concerns about vehicle use after-hours and on weekends for personal use, or possibly even unauthorized use by others.
Many telematics systems now have features that allow organizations to track or alert when a vehicle is operated outside normal work hours or outside a defined geographic area. This data can help verify whether the usage aligns with company policy and whether the explanation provided by the driver matches actual vehicle activity. If discrepancies arise, it’s a chance to reset expectations and ensure personal use is safe and appropriate.
Best Practices for Coaching Drivers
Telematics data is only as powerful as what’s done with it — and coaching is one of the most important ways to turn data into meaningful safety improvements. When a driver generates a serious alert or has a declining safety score, it’s critical to address it through a structured, one-on-one coaching session. These conversations should be led by a fleet manager, safety director or direct supervisor, and they should be grounded in data.
Start by preparing thoroughly. That means setting aside time to gather supporting materials (such as score trends, trip history and relevant policies) and identify any patterns, like repeated hard braking at intersections or excessive speeding in the same location. Use visual aids like dashboards or screenshots if your system allows, and bring context by comparing scores to the benchmark group data for their coworkers.
During the conversation, clearly explain what the data is showing and why it’s a concern. Ask open-ended questions to understand the driver’s perspective. Often, unsafe behaviors stem from operational pressures or route issues. In some cases, telematics data may reveal a deeper issue, such as persistent speeding between jobsites or frequent hard braking caused by distractions.
The key to coaching is consistency and clarity. Reinforce the importance of safe driving as a company value that outweighs speed or convenience. Work with the driver to set improvement goals — such as reducing hard braking events by a certain percentage or improving speeding scores over two weeks — and schedule a follow-up discussion. Recognize improvements and good performance just as consistently as you address issues.
Turning Insights Into Impact
Telematics systems represent a powerful opportunity for construction businesses to enhance safety, improve operations and control rising costs — but only when they’re fully integrated into everyday practices. From selecting the right system to engaging drivers through consistent coaching, the value lies in how the data is used, not just collected.
Construction leaders who treat telematics as a long-term safety and performance tool, not a short-term fix, are already seeing real returns. By avoiding common pitfalls, understanding the full capabilities, and fostering a culture of accountability and driver support, construction businesses can turn insights into action and measurable impact.