An EE SIM embedded within the Telematics unit will allow each vehicle to be monitored remotely, offering the ability to track the location, mileage and fuel efficiency of each vehicle as well as provide the potential to identify mechanical faults and diagnose the cause of breakdowns and collisions without having to send out a mechanic.

The in-car telematics system also gives insurers the ability to use data on driver behaviour, car condition and mileage to more accurately tailor premiums, and to help decide who is at fault in the event of a collision.

The service is initially rolling out on EE’s 2G and 3G network, the biggest and fastest in the UK, with plans to provide 4G services in the near future.

RAC director of business services David Aldridge said: ‘The RAC is dedicated to developing technology and networks that make significant differences to a business, both on an operational level and to the bottom line.

‘As the UK’s largest mobile network provider and pioneers of the UK’s first 4G service, EE is a natural partner of choice for RAC, delivering telematics right to the heart of businesses to make managing a fleet of vehicles easier and more cost-effective.

‘Our telematics technology offers fleet tracking and can even reduce the risk of accidents by up to 30%, which means that we can keep businesses moving on the roads more efficiently than ever before.’

Gerry McQuade, chief marketing officer, non consumer at EE, added: ‘The rapidly increasing connectivity in the UK is fuelling a boom in M2M telematics. There are endless possibilities for its application in the automotive sector, and this partnership will enable RAC to ensure its customers are the first to reap the rewards of superfast connectivity.’