- The integrated use of telecommunications and informatics, also known as ICT (Information and Communications Technology). More specifically it is the science of sending, receiving and storing information via telecommunication devices.
- More narrowly and commonly, telematics is applied specifically to the use of Global Positioning System technology integrated with computers and mobile communications technology.
- Most narrowly, the term is used to refer to the use of such systems within road vehicles, in which case the term vehicle telematics may be used.

Vehicle telematics systems may be used for a number of purposes, including collecting road tolls, managing road usage (the United States Department of Transportation intelligent transportation system), tracking fleet vehicle locations, recovering stolen vehicles, providing automatic collision notification, and providing location-driven driver information services. Vehicle telematics systems are also increasingly being used to provide remote diagnostics; a vehicle's in-built systems will identify a mechanical or electronic problem, and the telematics package will automatically make this information known to the vehicle manufacturer and service organization. Other forthcoming applications include on-demand navigation, audio and audio-visual entertainment content. The etymology of telematics, as determined by author and academic Dennis Foy, is from the Latin tele~ (far off, especially in relation to the process of producing or recording) and ~Matos (a derivative of the Gk machinari, or contrivance, usually taken in this context to mean 'of its own accord') which combine in the term telematics to offer a means of describing the process of long-distance transmission of computer-based information.

Practical applications of vehicle telematics

When used in a commercial environment vehicle telematics can potentially be a powerful and valuable tool to improve the efficiency of an organisation. Some practical applications of vehicle telematics include;

Vehicle tracking
Vehicle tracking is a way of monitoring the location, movements, status and behaviour of a vehicle or fleet of vehicles. This is achieved through a combination of a GPS(GNSS) receiver and an electronic device (usually comprising a GSM/GPRS modem) installed in each vehicle, communicating with the user (dispatching, emergency or co-ordinating unit) and PC or web based software. The data are turned into information by management reporting tools in conjunction with a visual display on computerised mapping software. Advanced vehicle localisation system for public transport may employ Odometry instead of GPS/GNSS.

Trailer tracking
Trailer tracking is the technology of tracking the movements and position of an articulated vehicle's trailer unit, through the use of a location unit fitted to the trailer and a method of returning the position data via mobile communication network or geostationary satellite communications, for use though either PC or Web based software.

Satellite navigation
Satellite navigation in the context of vehicle telematics is the technology of using a GPS and electronic mapping tool to enable the driver of a vehicle to locate a position, then route plan and navigate a journey.

Mobile data
Mobile data is use of wireless data communications using radio waves to send and receive real time computer data to, from and between devices used by field based personnel. These devices can be fitted solely for use while in the vehicle (Fixed Data Terminal) or for use in and out of the vehicle (Mobile Data Terminal)

Auto Insurance
The basic idea of telematic auto insurance is that a driver's behavior is monitored directly while the person drives and this information is transmitted to an insurance company. The insurance company then assesses the risk of that driver having an accident and charges insurance premiums accordingly. A driver who drives long distance at high speed, for example, will be charged a higher rate than a driver who drives short distances at slower speeds.


Telematic auto insurance was independently invented and patented by a major U.S. auto insurance company, Progressive Auto Insurance U.S. Patent 5,797,134 and a Spanish independent inventor, Salvador Minguijon Perez (European Patent EP0700009B1).

Telematics


1. The convergence of telecommunications and information processing, the term later evolved to refer to automation in automobiles, such as the invention of the emergency warning system for vehicles. GPS navigation, integrated hands-free cell phones, wireless safety communications and automatic driving assistance systems all are covered under the telematics umbrella.
2. The science of Telecommunications and Informatics applied in wireless technologies and computational systems. 802.11p, the IEEE standard in the 802.11 family and also referred to as Wireless Access for the Vehicular Environment (WAVE), is the primary standard that addresses and enhances Intelligent Transportation Systems (ITS) applications.