Mileage verification is crucial for various businesses, from auto insurance and car repair to road usage charge programs. For years, On-Board Diagnostics 2nd Generation (OBD2) dongles have been a popular method for tracking vehicle mileage. But while OBD2 devices have their uses, especially for individual car enthusiasts, are they truly the best solution for businesses needing reliable mileage data at scale? And more specifically, Can You Read Mileage Through Obd2 accurately and efficiently?
This article delves into the capabilities and limitations of using OBD2 to read mileage, highlighting why, despite its initial appeal, it might not be the ideal choice for comprehensive mileage verification, particularly when compared to modern alternatives like connected car APIs.
Understanding OBD2 and Mileage Reading
To answer the question “can you read mileage through OBD2?”, it’s important to first understand what OBD2 is and how it functions. Originally designed for vehicle diagnostics, the OBD2 system allows access to various car data points through a standardized port usually located under the dashboard. Mechanics and car enthusiasts use OBD2 scanners to read diagnostic trouble codes, monitor engine performance, and access real-time data from the vehicle’s computer.
So, can OBD2 read mileage? Technically, yes, but with a significant caveat. While OBD2 devices can infer mileage, they don’t directly access the vehicle’s official odometer reading in the way many might expect. Instead, OBD2 dongles typically calculate approximate mileage based on GPS location, trip start and end points, and speed data. This method, while seemingly convenient, introduces a range of inaccuracies that become problematic, especially for businesses relying on precise mileage data.
The Limitations of OBD2 for Mileage Verification
While OBD2 dongles offer some level of mileage tracking, their inherent limitations make them far from perfect for businesses requiring accurate and scalable mileage verification. Let’s explore the key drawbacks:
Inaccurate and Incomplete Mileage Data
The most critical issue with using OBD2 for mileage reading is accuracy. As mentioned earlier, OBD2 devices estimate mileage based on location and trip data rather than directly reading the odometer. This estimation process is prone to errors. Small inaccuracies in GPS tracking or trip detection can accumulate, leading to significant discrepancies over time. For applications like usage-based insurance or precise service reminders, these inaccuracies can result in incorrect risk assessments, unfair pricing, and dissatisfied customers.
Furthermore, the data comprehensiveness of OBD2 mileage tracking is questionable. Are businesses truly obtaining a complete and reliable mileage picture across their entire customer base? The reliance on inferred data, rather than direct odometer readings, casts doubt on the overall reliability and effectiveness of OBD2 for large-scale mileage verification.
Unintentional Failures and Inconvenience
Even when an OBD2 dongle is compatible with a vehicle, its functionality isn’t guaranteed to be seamless and consistent. Some cars react negatively to OBD2 devices, leading to false alarms, battery drain, or other unpredictable issues. These technical glitches create headaches for both businesses and their customers.
Beyond technical issues, the practical inconvenience of OBD2 dongles also contributes to their unreliability. Drivers need to wait for the device to be shipped, figure out the installation process (which can be daunting for non-technical users), and ensure it remains properly connected. A loose connection, a bump, or accidental removal can easily disrupt tracking, rendering the device useless without the driver even realizing it.
Imagine a scenario where a driver’s bag accidentally dislodges the OBD2 dongle. The device stops tracking mileage, but the insurance company remains unaware. This lack of real-time failure detection can lead to inaccurate mileage data, potentially causing policy disruptions or incorrect billing based on incomplete information.
Software Incompatibility
A frequently overlooked challenge is software incompatibility. OBD2 dongles often operate on independent platforms that don’t readily integrate with existing business systems. This creates additional workload for businesses trying to synchronize mileage data with their policy management, service scheduling, or billing systems. Instead of simplifying operations, OBD2 devices can introduce complexity and require manual data handling, defeating the purpose of automation.
Intentional Tampering
Even with proper installation, OBD2 dongles are vulnerable to intentional tampering. A driver wanting to underreport mileage for insurance purposes or avoid road usage charges could simply unplug the device before a long trip. There’s often no way for businesses to detect this intentional data manipulation.
Mileage fraud is a significant problem, costing auto insurance companies billions of dollars annually. A substantial percentage of drivers misreport their mileage, leading to considerable financial losses. This issue extends beyond insurance, impacting the reliability of service schedules for repair shops and accurate billing for road usage charge programs. OBD2 dongles, due to their susceptibility to tampering, offer limited protection against this widespread problem.
Privacy Concerns
In today’s privacy-conscious environment, OBD2 dongles raise significant concerns. Many drivers are uncomfortable with plugging a device into their car that constantly tracks their data with limited transparency. Questions arise about what data is being collected, who has access to it, and how it’s being used. The lack of clear data consent mechanisms and transparent data handling practices associated with some OBD2 solutions can erode customer trust and create resistance to adoption.
High Expenses
Finally, the cost associated with OBD2 dongles is a major drawback, especially for large-scale deployments. Businesses must purchase the hardware, cover shipping costs, and manage replacements for lost or damaged devices. If customers cancel services before the hardware costs are recouped, it represents a direct financial loss. Furthermore, ongoing subscription fees per vehicle and the logistical complexities of distribution, fulfillment, and returns add to the overall expense. Compared to software-based alternatives, OBD2 dongles can quickly become a costly and inefficient solution.
Why Connected Car APIs Offer a Superior Solution
Recognizing the limitations of OBD2, connected car APIs like Smartcar provide a compelling alternative for mileage verification. APIs offer a software-based approach that addresses the shortcomings of OBD2 dongles, delivering more accurate, reliable, and cost-effective mileage data.
Here’s how connected car APIs surpass OBD2 for mileage verification:
Accuracy and Reliability: APIs directly access the vehicle’s odometer reading, providing precise and real-time data, not estimations. This eliminates inaccuracies associated with GPS-based tracking and ensures businesses have access to the most accurate mileage information available.
Ease of Use and Convenience: API integration is remarkably simple. Customers grant data access through a secure, permission-based online process, usually involving just a few clicks within their car brand’s account. There’s no hardware to ship, install, or maintain, eliminating logistical headaches and simplifying the onboarding process for users.
Tamper-Proof and Secure: Unlike OBD2 dongles, APIs access data directly from the vehicle’s system, making it impossible for drivers to manipulate mileage readings by unplugging a device. This inherent security feature ensures data integrity and reduces the risk of mileage fraud.
Privacy-Focused and Transparent: Connected car APIs prioritize data privacy and transparency. Permission-based access ensures customers are fully aware of what data is being accessed (odometer, location, etc.) and explicitly consent to data sharing. This builds trust and addresses privacy concerns associated with OBD2 devices.
Cost-Effective and Scalable: APIs utilize a SaaS pricing model that is typically more predictable and scalable than OBD2 solutions. Businesses avoid hardware costs, shipping expenses, and replacement fees. The focus shifts to software integration, allowing teams to concentrate on developing valuable services for vehicle owners rather than managing hardware logistics.
Conclusion
While you can read mileage through OBD2, understanding its limitations is crucial, especially for businesses requiring reliable and scalable mileage verification. OBD2 dongles, while useful for individual diagnostics, fall short in terms of accuracy, reliability, convenience, security, privacy, and cost-effectiveness when deployed at scale.
Connected car APIs emerge as a superior alternative, offering a modern, software-driven approach to mileage verification. By providing accurate odometer readings, ease of use, robust security, and a focus on privacy, APIs empower businesses to streamline operations, reduce costs, and build trust with their customers. For businesses seeking a future-proof and efficient mileage verification solution, exploring connected car APIs is a clear and advantageous path forward.
Interested in learning more about how a connected car API can revolutionize your mileage verification process? Request a demo today to discover the power of precise and reliable vehicle data.
