Available from just a few pence per day per vehicle, the in-car unit can be installed in minutes according to the company and provides benefits including the ability to track the location, mileage and driver behaviour of each vehicle, along with HMRC-compliant mileage records.

As well as offering key duty of care benefits, the technology can deliver time and money savings that could save businesses with fleets as small as 15 vehicles in excess of £23,400 per year, according to the RAC.

Fleets can also save up to 15% on their annual fuel bills thanks to a "driver score" function that allows fleet managers to monitor how efficiently their vehicles are being driven. And the device can also help to lower insurance premiums as it gives insurers the ability to use data on driver behaviour, car condition and mileage to more accurately tailor premiums as well as helping to decide who is at fault in the event of a collision.

Forthcoming diagnostic features will also enable the system to warn of certain malfunctions or underperformance issues such as imminent battery failure. This will enable the RAC response team to alert the fleet manager of a potential fault or problem and suggest an appropriate and timely repair. It will also make it possible to identify mechanical faults and diagnose the cause of some breakdowns without having to send out a mechanic.

RAC director of business services David Aldridge said: ‘Our telematics technology offers fleet tracking and can even reduce the risk of accidents by up to 30%, which means we can keep businesses moving on the roads more efficiently than ever before.

‘The service offers a variety of benefits that deliver a great value proposition for companies of all sizes, from a fleet of just a few cars to national fleets of thousands. We believe RAC Telematics offers the complete fleet management solution.’

The telematics product launch is part of a wider suite of new business services being launched by the motoring brand in 2013.