Mexico is facing a road crisis. According to data from the National Institute of Statistics and Geography (INEGI) , more than 380,000 traffic accidents are recorded in the country each year, with thousands of injuries and huge economic losses. Given this reality, the implementation of advanced technologies, such as telematics, offers a ray of hope to reduce both the human and financial costs associated with these incidents.
The main positive impact of telematics lies in its ability to prevent accidents before they occur. Through continuous monitoring of factors such as speed, seat belt use, sudden braking or sudden acceleration, companies that manage vehicle fleets and individual drivers can gain critical insights into their behavior on the road.
This is especially relevant in Mexico, where poor road maintenance and poor driver education contribute to a high-risk environment. Through telematics, dangerous behavior can be detected and feedback provided in real time, helping drivers correct their actions before an incident occurs.
In Mexico, the financial cost of road accidents is staggering. The economic impact of these accidents is estimated to amount to between 2% and 6% of the country’s Gross Domestic Product (GDP), including medical costs, lost productivity, and material damage. Businesses that rely on vehicles for their daily operations — such as logistics and transportation companies — are particularly vulnerable to these costs.
Telematics helps Mexican companies manage their fleets more efficiently and safely, significantly reducing the likelihood of incidents. By avoiding accidents, companies save on repair costs, medical expenses, lawsuits and even insurance premiums, which can be reduced when these systems are implemented.
In this regard, some insurers in Mexico are already offering incentives, such as reduced policy costs, for companies that adopt these security and monitoring technologies. This represents a competitive advantage for companies seeking to reduce their operating costs in a complex economic environment.
In addition to the immediate impact on safety and costs, telematics also offers long-term benefits by contributing to better road safety education in Mexico. With the information provided by these systems, it is possible to design driver training programs that focus on correcting unsafe behaviors. This is especially important in a country where the lack of awareness programs and the high rate of traffic violations are constant challenges.
For example, a company can use telematics data to identify drivers most likely to commit violations and create personalized training plans. This not only reduces the risk of incidents in the present, but also fosters a culture of safe driving in the long term, which has a positive impact on society as a whole.
The use of telematics not only benefits businesses, but also has a social and environmental impact in Mexico. With fewer accidents on the roads, traffic congestion is reduced, which in turn reduces polluting emissions generated by vehicles stuck in traffic. In addition, cities could use telematics data to identify high-risk areas and design safer infrastructure, such as better signage or the implementation of pedestrian crossings in critical areas.
Mexico faces enormous challenges in terms of road safety and the costs associated with traffic accidents. However, telematics offers a modern and effective solution to mitigate these problems. By preventing accidents, educating drivers and reducing financial costs for companies, this technology has the potential to transform Mexican roads into safer and more efficient places.
It is time for businesses and government in Mexico to fully embrace telematics as part of a comprehensive strategy to save lives and reduce the economic costs of road accidents.
Check out Juan Cardona’s previous column: The challenge of real-time tracking: a perspective from security and telematics.
Juan Cardona is Vice President of Sales for Geotab in Latin America.
Comment and follow Juan Cardona on Linkedin
Comment and follow us on X: @GrupoT21
