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The Ultimate Guide To Fleet Tracking

Vehicle tracking allows you to monitor key performance metrics within your fleet in real time. Here's all you need to know about them...

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The Ultimate Guide To Fleet Tracking

Vehicle tracking allow you to monitor key performance metrics within your fleet in real time. Here's all you need to know about them...

Adam Jackson-Wright

Reviewer

Last updated 24/11/2025

Whether your business relies on cars, trucks, vans, or bikes, fleet tracking systems can be a huge asset in ways other than just a swanky new GPS. Here, you’ll learn how business fleet tracking works, its benefits, and how easy it is for your business to get equipped with it.

So strap yourself in as we take you through everything you need to know about fleet tracking systems!

What is Vehicle Tracking?

Vehicle tracking devices are GPS technology that allows you to monitor key performance metrics within your fleet in real time. This can be anything from location to driver behavior, fuel consumption, and scheduled maintenance.

Fleet tracking systems come in two separate parts.

Vehicle Tracking Hardware

The hardware, sometimes known as the in-vehicle telematics or fleet tracking GPS device, is the actual device itself. These attach to your vehicles and collect key information about location and performance.

  • GPS Technology: This collects data, including the location, speed, and route information of your vehicles.
  • Telematics Systems: Telematics gathers data using your vehicle’s onboard diagnostics (OBD), such as engine performance, fuel consumption, and maintenance needs.

Vehicle Tracking Software

An easy-to-read dashboard that can connect to your computer, mobile, or tablet. This is your hub where you can track each vehicle’s key metrics. Some dashboards are customizable to fit your specific needs, making them simple for everyone to use, no matter how tech-savvy you are.

Types of Vehicle Tracking Systems

Two types of fleet tracking systems are available: active and passive. It’s important to distinguish between the two, as one will be more suited to your needs than the other. Below, we’ve broken them down with an overview of each and their pros and cons.

Active Fleet Tracking Systems

Also known as real-time tracking systems—any guesses what their main benefit is? Well done if you said you can access your info in real time! This includes the location and condition of your vehicle.

They use GPS technology to track this data, and an interface transmits it to a central server. This then appears on your hub, giving you a 360-degree view of your fleet.

Typically, you activate this by installing it in your OBD port and downloading the corresponding software from your provider. You can then access this on desktops, laptops, and mobile or tablet devices.

Pros

  • Real-time Monitoring: See exactly what’s going on across your fleet in real time. Optimize routes, monitor fuel consumption, identify poor driving, and react to emergencies instantly.
  • Improved Efficiency: Use data on driving habits, route management, and traffic to cut fuel costs, provide better customer service, and increase productivity.
  • Increased Security: Catch drivers veering off route or locate stolen vehicles quickly.
  • In-depth Reports: Gather data like mileage, speed, idle time, and driver behavior to improve efficiency and enforce best practices.

Cons

  • Cost: Active systems are more sophisticated, so they cost more upfront and may have ongoing fees.
  • Complexity: May require training to install and operate—especially for less tech-savvy users.
  • Increased Power Consumption: Real-time updates can drain your vehicle’s battery faster.

Passive Fleet Tracking Systems

Passive systems rely on an SD card or internal memory to store data. Instead of transmitting it in real time, the data is reviewed after the journey.

You’ll only pay a one-time fee to purchase and install the system. This makes it a great option for businesses on a tighter budget, since it’s cheaper to buy and maintain than active systems. Each purchase includes the database, hardware, and software.

Pros

  • Cost-Effective: Ideal for budget-conscious operations; cheaper than active tracking.
  • Simplified Implementation: Easy setup and use, with no connectivity concerns.
  • Data Privacy: Since data is stored locally, there’s less risk of hacking or data breaches.

Cons

  • Delayed Data: You can’t respond to events in real time, and manual data analysis is time-consuming.
  • Fewer Features: Lacks live maps, fuel usage, and behavior monitoring found in active systems.
  • Limited Storage: With local/SD card storage, you must offload and wipe data frequently, often after every trip.

What Can Vehicle Tracking Systems Do?

Despite the name, fleet tracking systems can do a lot more than just tell you where your vehicles are. Below, we’ve listed 8 of our favorite features found in these devices.

Real-Time GPS Tracking

First and foremost, fleet tracking systems—well, track your fleet. Active systems do this in real time using GPS technology. A device is installed in your vehicles, and their live location, speed, and routes are broadcast straight to your hub.

With all of this information at your fingertips, you can quickly respond to situations on the road, like traffic congestion or accidents. You can make sure your drivers stick to pre-agreed routes, keeping fuel costs low and productivity high. You can also inform your customers about delivery times and delays, boosting customer satisfaction.

Route Optimization

By analyzing real-time traffic data, road conditions, and delivery prioritization, fleet tracking systems find the most efficient route for you. This can help save on fuel costs (which account for up to 30% of the costs of running a vehicle), reduce travel time, and avoid any delays. This translates to lower expenses, higher productivity, and increased customer satisfaction.

The most efficient routes also help extend your vehicle’s lifespan. Wear is reduced due to less strain on components, meaning they last longer, and you save money on maintenance and repairs.

Driver Behavior Monitoring

Fleet tracking not only tells you where your drivers are, but also how they’re behaving on the road. Bad driving habits like speeding, harsh braking, rapid acceleration, and idling can all be brought to your attention. Then, you can train drivers on safe and more fuel-efficient driving practices.

It helps promote safety on the road, lowers your insurance premiums, and saves on fuel. It also indirectly supports your brand image. Think about it—if someone sees one of your vehicles being driven recklessly, will they trust your business in the future?

Geofencing

Geofencing allows you to create virtual boundaries that vehicles must stay within. You will instantly receive an alert if they leave these without proper authorization. This is perfect for two reasons:

  • Ensuring your drivers stick to the most time- and fuel-efficient route.
  • Alerting you to any thefts or unauthorized use when your vehicles should be at your warehouse or job site.

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Maintenance Scheduling and Alerts

Mileage, engine diagnostics, and usage patterns can all be monitored with fleet tracking systems. Automatic maintenance alerts can be set up to inform you when your vehicles reach specific service intervals and to store service history.

These proactive measures reduce the chances of breakdowns, costly repairs, and downtime, while extending your vehicle’s lifespan and helping you stay compliant with safety regulations.

Fuel Management

We don’t need to tell you how expensive fuel is. If you manage a large fleet, fuel expenses will likely take up a big chunk of your budget. But fleet tracking gives you powerful tools to cut those costs.

We’ve already talked about optimized routes and efficient driving, but fleet tracking goes a step further:

If one vehicle is burning through fuel significantly faster than others, it might indicate a problem. You can investigate and quickly fix issues, so you always get the most bang for your buck at the pump.

Integration With Other Systems

Fleet tracking devices can connect to your business’s existing systems, including fuel cards, CRM, ERP, payroll, and other accounting software. This helps you streamline workflows across multiple departments, improving communication and operational efficiency.

Customizable Dashboards and Reports

Some providers allow you to customize your dashboard to meet your specific needs. Maybe you’re particularly interested in driver behavior, or you want to closely monitor fuel consumption. Whatever it is, it’s just a button click away. 

Benefits of Vehicle Tracking

So, you know what fleet tracking systems can do—but what does that mean for your business? From cost savings to improved customer satisfaction, these systems offer benefits that can transform your operations.

Reduce Your Costs

Route optimization is a key part of fleet management software. It helps you select the most fuel-efficient routes, cutting fuel expenses dramatically. Active systems can also account for traffic delays or accidents and reroute you in real time.

By monitoring driver behavior, you can correct costly habits like idling and rapid acceleration. These behaviors waste fuel and put extra strain on your vehicles, leading to premature wear and expensive repairs.

Fleet tracking systems monitor not just location, but also vehicle condition. Built-in preventive maintenance reminders and real-time health insights keep you ahead of breakdowns that could otherwise lead to high repair costs.

And thanks to increased vehicle security, you might even qualify for lower insurance premiums—a major win for businesses with larger fleets.

Boost Productivity

Better route planning doesn’t just save money—it also increases your fleet’s overall productivity.

By finding the fastest and most efficient routes, you can boost your road efficiency by 25%–30%. That leads to higher profits, fewer late deliveries, and better customer satisfaction. With real-time traffic updates, you can alert drivers to incidents and re-route their journeys immediately.

And what good are your vehicles if they’re stuck in a repair bay? Preventive maintenance reminders ensure you never miss a service date, keeping your fleet running smoothly and minimizing downtime.

Improved Safety

Risky driving patterns—like speeding, harsh braking, or not wearing a seatbelt—can be identified and addressed quickly. This helps improve road safety and lowers the risk of accidents. You can also flag high-risk drivers who need additional training.

Real-time traffic and weather updates are invaluable. If one of your drivers is headed off-road and a storm is approaching, you can instantly re-route them to a safer path.

Video-based telematics lets you review any road incidents. That means better training, smoother handling of legal situations, and protection against fraudulent insurance claims.

And yes, AI is everywhere, including in fleet tracking systems. These tools analyze data, provide personalized feedback to each driver, and even generate driver safety scorecards.

Maintaining Regulatory Compliance

Fleet operators must follow many rules and regulations, and if they don’t, they could face hefty fines. Fortunately, fleet tracking includes features that help keep your operations efficient and compliant.

If you manage a heavy-duty vehicle (HDV) fleet, tracking and archiving tachograph data can be tedious. But with fleet maintenance systems, you can create a digital record of driving hours and working time regulations to maintain compliance with regional transport laws.

Daily walkarounds can easily be missed on tight schedules. But they’re crucial. Fleet tracking streamlines these checks to ensure vehicles are roadworthy and meet safety standards—such as those set by regulatory bodies like the US Department of Transportation (DOT).

Since you’re tracking drivers, you’re also responsible for data privacy compliance. These systems help ensure alignment with privacy laws (like the CCPA or the CPRA), which protect personal information. Trust us—you don’t want to be hit with a data breach penalty.

Increased Security

Fleet tracking’s geofencing capabilities let you create a digital boundary around any area you choose. While often used to keep drivers on pre-approved routes, it also serves as a valuable security tool. For instance, if you draw a perimeter around your facility, you’ll receive an instant alert for any unauthorized movement, from theft to midnight joyrides.

One powerful feature is remote immobilization. If a vehicle gets stolen, you can press a button and the system will disable the engine, stopping the thief (or joyrider) in their tracks. You can then alert police and minimize your financial losses.

More advanced systems offer anti-tamper monitoring, which alerts you if critical components—like batteries—are removed or tampered with.

Other features, such as panic buttons and collision detection, enable drivers to call for help in emergencies. When combined with dashcams, these tools provide visual evidence for investigations and boost driver safety.

Extend Vehicle Lifecycle

You know what they say: “A stitch in time saves nine.” That’s never truer than with fleet maintenance. Service triggers help you stay ahead of routine tasks like oil changes, tire rotations, and brake checks, minimizing downtime and maximizing your fleet’s lifespan.

Harsh braking, rapid acceleration, and excessive idling all cause unnecessary wear. By tracking and correcting these behaviors, you can increase component longevity.

Knowing how to rotate vehicle usage also plays a role. Rather than overusing some vehicles while others sit idle, balanced usage spreads wear evenly and allows for coordinated maintenance—all at once—reducing total scheduled downtime.

And finally, training drivers in eco-driving techniques—like maintaining steady speeds and avoiding idling—improves vehicle health, reduces emissions, and lowers fuel costs. Win-win!

Better Customer Service

With real-time updates on your vehicles’ locations, you can give your customers accurate arrival times. If unexpected delays happen, you can notify them immediately, keeping them in the loop every step of the way.

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Who Can Benefit from Fleet Tracking Software?

Lorem ipsum dolor If your business relies on multiple vehicles, fleet tracking software offers powerful benefits. Here are just a few industries that can make the most of these systems:

  • Transportation and Logistics: Monitor vehicle locations, optimize routes, and ensure timely deliveries, boosting operational efficiency.

  • Construction: Manage heavy machinery on job sites, track maintenance intervals, and improve security with geofencing.

  • Coach Businesses: Track bus locations in real time and provide accurate updates to passengers, improving service reliability.

  • Emergency Services: Ambulance, fire, and police departments can dispatch the nearest units to incidents, reducing response times and improving public safety.

  • Utilities and Services: Companies offering waste collection, plumbing, or electrical repairs can allocate resources efficiently and meet appointments on time.

  • Delivery Services: For parcel and food deliveries, fleet tracking ensures route accuracy and allows live customer notifications.

  • Oil and Gas: Monitor the movement of fuel tankers to guarantee safety and regulatory compliance.

  • Agriculture: Farmers track tractors and equipment to optimize usage during planting and harvesting, and reinforce field security with geofencing.
 

How Much Does Fleet Tracking Cost?

There’s no one-size-fits-all answer when it comes to fleet tracking pricing. The size of your fleet, the features you want, and the provider you choose will all affect your total cost. Here’s a breakdown of the types of expenses to expect:

Installation Costs

You might choose to install tracking devices yourself, which is cheaper than hiring a professional, but you risk improper installation. And if it’s not done correctly, you won’t fully benefit from what fleet tracking has to offer.

Software Setup Fees

Like installation, setup on the software side is crucial. A professional setup ensures your system is configured to track exactly what you need.

Ongoing Subscription Fees

Active systems often come with monthly subscription fees. Depending on the provider and the features you select, costs can range from $25 to $45 per vehicle, per month.

Advanced systems may also charge extra for premium features, such as:

  • Customized dashboards.
  • Integration with other software.
  • Technical support.
  • Historical data storage.
  • Maintenance tools.
  • Fuel and temperature monitoring.

How Can I Get Fleet Tracking?

Now that you know everything about fleet tracking systems, there’s just one question left: How do you get started?

It’s easy—just tap the button below and answer a few simple questions about your business. You’ll receive tailored quotes based on your needs.

This is a free, no-obligation service. Don’t like what you see? No worries—you can walk away without spending a dime.

FAQs

How does fleet tracking work?

Fleet tracking uses GPS and telematics to monitor vehicle locations, routes, and performance in real time. Data is sent to a central platform, allowing fleet managers to optimize routes, reduce fuel costs, and improve safety through alerts, reporting, and driver behavior analysis.

Fleet tracking improves route efficiency, reduces fuel costs, enhances driver safety, and increases asset security. It also supports compliance, maintenance scheduling, and real-time monitoring, leading to better decision-making, lower operational costs, and improved customer service.

Geofencing is a GPS-based technology that creates virtual boundaries around specific locations. When a vehicle enters or exits these zones, alerts are triggered. This improves security, route compliance, prevents unauthorized vehicle use, and enhances overall fleet management.

Fleet tracking costs vary by provider and features. Expenses include hardware, installation, and monthly subscriptions, typically ranging from $25 to $45 per vehicle per month. Advanced features like temperature or fuel tracking may incur additional costs. 

Tap the button to the left of the page and answer a few questions about your business. You’ll receive a range of tailored fleet tracking quotes at no cost. This is a free, no-obligation service, so if you’re not happy with your quotes, you can walk away without spending a dime.

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