Mileage verification is crucial for numerous businesses, from insurance providers offering usage-based premiums to auto repair shops scheduling maintenance, and even government agencies implementing road usage charges. While OBD2 scanners, or On-Board Diagnostics 2nd Generation dongles, are a common tool for vehicle diagnostics, they fall short as a scalable and reliable solution for mileage tracking, especially when compared to modern connected car APIs.
Initially designed for car enthusiasts who enjoy monitoring vehicle performance data, OBD2 dongles were not intended for everyday consumer applications requiring precise and dependable mileage verification. For the average driver, the complexity and hassle of installing and maintaining a dongle simply to track mileage are significant deterrents. Furthermore, for businesses aiming to implement large-scale mileage verification, the costs associated with OBD2 dongles quickly become prohibitive, encompassing hardware, shipping, installation support, and ongoing maintenance.
The Drawbacks of OBD2 Dongles for Vehicle Mileage Tracking
Despite their utility in vehicle diagnostics, OBD2 dongles present several significant limitations when used for mileage verification, particularly for businesses requiring scalable and accurate solutions.
Inaccurate and Incomplete Mileage Data
A common misconception is that OBD2 dongles provide a vehicle’s exact odometer reading. In reality, these devices typically estimate mileage based on GPS location data and trip start and end points. This method of approximation inevitably introduces inaccuracies, which can accumulate into substantial errors over time. Such discrepancies can negatively impact critical business operations, leading to incorrect risk assessments for auto insurance policies or flawed service recommendations from repair shops.
Moreover, the reliability of mileage data obtained through OBD2 dongles is questionable due to data comprehensiveness issues. Businesses need consistent and comprehensive data across their entire customer base to ensure service reliability and effectiveness. However, OBD2 dongles, while known for real-time data delivery, are limited to the data accessible through a vehicle’s OBD port. Critically, this port does not provide direct access to the vehicle’s actual odometer reading or precise location data. The reliance on the OBD port also creates compatibility issues with newer vehicles, particularly electric vehicles (EVs), which may not feature a standard OBD port. In many instances, EV drivers are required to purchase separate adapters to even use OBD2 dongles, adding further complexity and cost.
Susceptible to Unintentional Failure and Inconvenience
Even when physically compatible with a vehicle, OBD2 dongles are not foolproof. Some vehicles exhibit adverse reactions to these devices, including triggering false error alerts or causing battery drain. These unpredictable issues create significant inconvenience for both businesses and their customers. The installation process itself is also cumbersome. Drivers must wait for the device to be shipped, navigate the installation process, and ensure it remains securely connected. A loose connection, even from an accidental bump, can render the device ineffective, leading to unreliable data collection.
Consider a scenario where an OBD2 dongle becomes dislodged without the driver’s knowledge. The device ceases to track mileage, yet the insurer remains unaware of the data loss. This lack of data can lead to inaccurate mileage estimations, potentially resulting in inflated insurance premiums for the policyholder or even policy suspension pending manual odometer verification.
Software Integration Challenges
OBD2 dongles often operate on platforms that are not easily integrated with existing business systems. This lack of seamless integration creates additional workload for businesses attempting to synchronize mileage data with their current operational tools. For example, auto insurers face difficulties aligning dongle data with policy management systems, repair shops struggle to integrate mileage data for service reminders, and road usage charge programs encounter obstacles incorporating data into their billing infrastructure. Instead of simplifying operations, OBD2 devices can inadvertently introduce further complexities.
Vulnerability to Intentional Tampering and Mileage Fraud
Even when properly installed and functioning, OBD2 dongles can be intentionally disabled. Drivers seeking to underreport mileage for various reasons, such as lowering insurance premiums or avoiding road usage charges, can simply unplug the dongle. This action is often undetectable, leaving businesses to operate with incomplete and inaccurate data. Mileage fraud is a significant problem, costing auto insurers billions of dollars annually. It’s estimated that over half of drivers misreport their mileage, contributing to substantial financial losses. This fraudulent activity also undermines the reliability of services for other sectors, such as maintenance scheduling for repair shops and accurate billing for road usage charge programs.
Privacy and Data Security Concerns
In an era of heightened awareness regarding data privacy, OBD2 dongles raise considerable concerns among consumers. Recent incidents involving data breaches and misuse in the automotive industry have made data privacy a paramount consideration for technology users. Many drivers are understandably uneasy about plugging an unknown device into their vehicle’s diagnostic port, constantly monitoring their driving data with limited transparency. Questions about the specific data collected, who has access to it, and how it is utilized are critical. The lack of explicit data consent mechanisms associated with many OBD2 dongle solutions further exacerbates these privacy concerns.
High Implementation and Maintenance Costs
The financial implications of using OBD2 dongles for large-scale mileage verification are substantial. Businesses must bear the costs of purchasing the hardware, shipping devices to customers, and managing replacements for lost or damaged dongles. The initial cost of a new dongle can range from $50 to $60 per unit, while even refurbished options still cost around $17. Furthermore, ongoing subscription fees per vehicle, coupled with the logistical expenses of distribution, fulfillment, and returns, add to the overall financial burden. Instead of enhancing profitability, OBD2 dongles can quickly become a costly overhead, particularly when compared to software-based alternatives that eliminate hardware requirements altogether.
Connected Car APIs: A Superior Alternative for Mileage Verification
Connected car platforms, such as Smartcar, offer a compelling and more efficient alternative to OBD2 dongles for mileage verification, significantly reducing overhead costs and improving data reliability.
Enhanced Accuracy: Connected car APIs access a vehicle’s actual odometer reading directly from the car’s computer system, eliminating estimations and inaccuracies associated with OBD2 dongles. This precise, real-time data ensures fair pricing and reliable services for businesses and their customers.
Simplified User Experience: Onboarding with a connected car API is remarkably user-friendly, often requiring just a few clicks. Customers simply log into their existing car account through a secure interface, grant permission for data access, and the connection is established. There’s no need to wait for hardware to arrive, struggle with complicated installations, or worry about device malfunctions.
Unwavering Reliability: Unlike OBD2 dongles that can be tampered with or fail due to loose connections, connected car APIs provide consistent and tamper-proof odometer data. Mileage records cannot be manipulated by disconnecting a device, guaranteeing data integrity and reducing the risk of fraudulent claims.
Robust Privacy Protection: Connected car APIs prioritize data privacy through transparent consent management. Platforms like Smartcar clearly display the specific data being accessed, whether it’s odometer readings, location, or other vehicle information. Customers retain full control over their data, fostering trust and transparency between businesses and vehicle owners.
Cost-Effectiveness and Scalability: Connected car APIs operate on a scalable SaaS pricing model, adapting to business needs without the burden of hardware expenses. By eliminating the costs associated with device procurement, shipping, replacements, and maintenance, businesses can allocate resources more effectively, focusing on core product development and customer service.
In conclusion, connected car APIs represent a significant advancement over OBD2 mileage trackers, providing a more accurate, reliable, user-friendly, and cost-effective solution for vehicle mileage verification. For businesses seeking to scale their operations and ensure data integrity while prioritizing customer privacy, connected car APIs are the clear choice for the future of mileage tracking. To explore how Smartcar’s connected car API can benefit your business, we invite you to request a demo today.
