How to save money on your vehicle insurance premium with a GPS tracker

On: 24/11/2011 15:10 In: Remote Asset Management

Saving money on your vehicle insurance premiums is as simple as installing a GPS tracker. Because insurance companies give discounts for safe driving habits, low usage and installing anti-theft devices, GPS trackers make sense for both businesses and individuals.

Tracking devices save insurance companies money by limiting their risks, and many companies are willing to pass along some of the savings.

Insurers offer discounts for a variety of anti-theft devices, including security systems and disabling devices, but nothing is more likely to protect an insurance company from a theft claim than a tracking device. 

With GPS on board, locating a stolen vehicle is easy. When stolen vehicles are recovered quickly and before they are damaged, there’s no need for an insurance pay-out. 

Devices can sometimes even alert you when a vehicle travels beyond its usual area, providing the first indication that a vehicle may have been stolen. Without a GPS Tracker, the theft might not be detected for hours.

Some insurers offer companies discounts when they encourage safe driving of fleet vehicles. Trackers can monitor drivers, looking for bad habits including quick acceleration, driving at high speeds and hard braking, all signs of reckless driving.

Trackers are common in fleet vehicles and rentals cars, but they can be just as useful for individual personal vehicles. The same kind of monitoring can be used to keep a check on teenage drivers to make sure they’re safe even when their parents aren’t around.

Additional insurance discounts are also sometimes available for vehicles that are driven infrequently or only for short distances, and trackers can verify that a vehicle qualifies for this savings. The less time a vehicle spends on the road, the less likely it is to be involved in a traffic accident or other incident.

Trackers can even verify that a vehicle is housed in a safe location overnight, another way insurance companies can lower their risk. Cars that are locked up at night as less likely to be stolen or damaged than those parked on the street.

With a GPS tracker installed in all your personal and business vehicles, you always know where your vehicles are and how they’re being used. More importantly for insurance companies, they can keep an eye on usage too. So can the police, if necessary.

All those eyes watching a vehicle’s usage, limits insurance company risk, and could save you money on your insurance premiums.