Car Tracking Device For Insurance
Save Money On Car Insurance With GPS Tracking
Car insurance can be expensive, and with California motorists spending roughly $194 per month for auto insurance it seems like all drivers could benefit from a reduction in their monthly auto insurance premiums. According to 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. Also, practicing safe driving, avoiding a car accident (or motorcycle accidents) will help reduce your insurance costs, but there is another unique way that businesses and consumers are also reducing their auto insurance. This comes in the form of GPS tracking technology that is making sure people are safe drivers by reviewing the driving data of those insured. Let’s take a closer look at how raw data is helping insurance companies track and rate safe drivers!
What Is An Insurance Tracking Device Box
So what is a GPS plugin device and how do companies that insure motorists use the technology to make sure their clients are safe drivers? First of all, a GPS plugin device is a real time tracker that connects to a vehicle’s OBD2 port. The device is therefore powered by your vehicle and data is collected such as how fast you are driving. There are insurance programs available that access this raw data and can determine if people are bad or good drivers.
Understanding insurance and how it works, it is easy to see why that with a tracking platform in place that allows for data collection, insurance companies will feel better about extending insurance discounts to drivers. Basically, when a GPS tracker monitors your driving, you are more likely to drive safe, which means insurance claims go down, and everyone is happy. That means drive safe and save!
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 the 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 of 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 Connect plugin device to help reduce the probability of auto theft. This is the reason is that the monitoring devices can help any American family not only drive safely but quickly recover their vehicle if it is ever stolen.
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 with 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 evaluating 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 A Tracking Program Cut Insurance Premiums
Essentially, car insurance companies will be looking to adjust a driver’s rate according to the miles they drive, how safe they drive, and other factors related to risk. The function of the plan is to reward drivers who are driving slow, at the safest time of day, and who operate a car 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 a 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, and other raw data to help insurance companies gauge driver risk. Since vehicle tracking systems record a slew of valuable driving-related data, car insurance monitoring programs has some controversy encompassing it. Some of these questions people are asking are:
- 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?
Allstate’s DriveWise plan rewards safe drivers by monitoring all risks of using cars. This is through insurance telematics that can determine how often you use your phone while driving, crash detection, and other diving insights. Progressive Snapshot is another tracking program that evaluates the risks of car insurance through the use of GPS tracking devices.
How Insurance Companies Assess Risk Factors
Currently, most insurance companies evaluate potential risk factors by looking at things such as :
- Driver’s Age
- Driver’s Marital Status
- 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.
Matthew is a freelance writer who is passionate about technology, music, photography, and decentralized finance.