Insurance Discounts For GPS Tracking
Save Money On Car Insurance With GPS Tracking
Car insurance can be expensive, and with California motorists spending roughly $164 per month for auto insurance it seems like all drivers could benefit from a reduction in their monthly premiums. According to the people over at the United Services Automobile Association (USAA), some of the best ways for motorists to save money on car insurance is by reducing coverage on older vehicles, maintaining strong credit, asking for a higher deductible and comparing auto insurance rates before purchasing a new or used vehicle. This is all helpful information and can help motorists save some cash on their car insurance, but another unique way that businesses and consumers are also reducing their auto insurance is through the use of GPS trackers for automobiles.
What Is An Insurance Tracking Device Box
Everyone is pretty much familiar with GPS technology these days. This is because locational technology is used for everything from social networking to navigational applications with mobile apps such as Google Maps. GPS tracking devices work off many of these same principles. Basically, how a live GPS device works is by using satellite technology to store locational data as well as other information related to vehicle activity such as speed, driver stops, etc. This tracking data is then sent to off-site servers in real-time that allow for that data to be viewed and digested from anywhere in the world where Internet access is available. The live GPS essentially allows a motorist or business to see where their vehicle is located, what that vehicle had been doing and much more!
How Real-Time GPS Can Reduce Auto Insurance
Live GPS vehicle tracking devices offer consumers, businesses and any form of motorists access information related to automobile activity 24/7, and it is because of this expanded oversight that some car insurance providers are offering discounts to those using the vehicle management technology. When a car is equipped with a real-time GPS that can provide live tracking data at any point in time that vehicle is then significantly more secure. The vehicle is much more likely to be recovered if stolen and recovered without damage. This is something that auto insurance companies look fondly upon, as the motorist is taking a very proactive approach to safeguarding their mobile asset(s). Therefore, with the vehicle owner taking the initiative to enhance security of their motor vehicle, auto insurance companies will often time extend small discounts to those motorists.
GPS tracking systems are very useful tools in both the business world and everyday life for consumers seeking to boost vehicle and/or driver safety. Auto insurance companies are very well aware of the monitoring technology and many times provide discounted insurance plans for those utilizing vehicle monitoring technology. There are a number ways motorists can save money on their car insurance, and those seeking a way to reduce auto insurance should certainly look into how GPS tracking could help them save money.
Car Insurance With GPS Tracker
States Offer Discounts For Proactive Consumers
Automobile theft is one of the reasons that car insurance premiums are high for many people. Living in areas considered high-risk and other factors can all result in you having to pay top dollar for an auto insurance coverage plan. Securing your personal assets can sometimes be costly, but the good news is that many states are now offering discounts and reduced insurance rates for consumers who are proactive in protecting their personal assets. What the insurance companies are doing is giving people breaks who use GPS tracking systems such as the SilverCud tracking system to help reduce the probability of auto-theft.
Theft-recovery devices that use GPS tracking technology are a win-win for both the consumer and the insurance company because the insurance company and the consumer both know that there is a greater chance of recovering a vehicle if it is ever stolen. With less risk comes lower rates. The GPS tracker makes the car insurer feel comfortable providing the consumer with an insurance rate lower than that of a consumer who is not using a vehicle tracking device.
Some of the states most recognized for giving consumers who use tracking devices quality discounts on insurance are Florida, Kentucky and Illinois. However, insurance companies in every state offer some form of special rewards program to people who outfit their vehicle with some variation of alarm or GPS vehicle tracker.
Some people who invest in quality GPS tracking systems such as the SilverCloud GPS tracking system sometimes will not even get auto-theft coverage because they have so much confidence their car will not be successfully stolen. Not to mention, many real-time tracking systems have outputs that can be set to disable the starter, lock car doors and provide other security measures.
The best advice is to talk with your insurance agent about how a tracking system can help you get a lower rate, then you just got to do the math!
What benefits do car insurance companies offer if you use a vehicle tracking device?
Car insurance companies do everything they can to assess a driver’s risk before providing the driver a car insurance policy. Car insurers look at multiple different risk factors to categorize and predict what driving behaviors a person will potentially exhibit. However, California is looking at taking a new approach to evaluate a driver’s risk on the roadways, and that risk may be assessed by GPS vehicle tracking technology.
Vehicle tracking devices are simple devices that can archive everywhere a driver has traveled. Car insurance companies are pondering using vehicle tracking system technology to help them more accurately gauge the level of risk a driver has. The GPS tracker approach to assessing driver risk would not be made mandatory by insurance companies, therefore, only drivers who would want to take advantage of the program, which would greatly reduce most driver’s policy rates, would have their vehicles monitored via the car tracking systems
How Does the Plan Work?
Essentially, car insurance companies will be looking to adjust a driver’s rate according to the miles they drive. The function of the plan is to reward drivers who are not consistently clogging the roadways, adding to the pollution problem, and driving less frequently than the average drivers. Since rates are currently predicated upon the driver’s own estimate on how much they travel per year, there is large room for potential error in calculation. Car tracking devices could resolve the error and provide accurate data.
Presently, vehicle trackers are using GPS system technology to generate a vehicle’s position, miles driven, etc. Since vehicle tracking systems record a slew of valuable driving related data, the tracking system plan has some controversy encompassing it. People are asking questions such as:
Will insurance companies document all the places I frequent with GPS tracking?
Will insurance companies judge me if the vehicle tracking system records my vehicle parked in front of a bar or nightclub?
The vehicle tracking device plan is still in its infancy stages, however, the only drivers who would be eligible for the plan would be those who would volunteer to have a GPS tracker equipped to their vehicle. Insurance companies would probably only require driver’s provide a text report generated from the car tracking device to validate driving habits.
How Insurance Companies Assess Risk Factors
Currently, most insurance companies evaluate potential risk factors by looking at things such as :
- A driver’s age
- A driver’s marital status
- A driver’s education
- Where a driver lives
The vehicle tracking plan looks to help drivers receive the fairest policy rates by helping insurance companies make proper and accurate assessments of driver risk.
Ryan is a freelance writer who is passionate about technology, music, photography, and decentralized finance.