Etini Willie
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It is a common practice for auto insurance providers to offer discounts to car owners who accept installing car tracking devices on their cars. With the rise of the Global Positioning System (GPS), it has become easy to use navigation data to track and get details about a car at a particular time. Why would an insurance company offer a discount for installing a car tracker in your car? Let's get into it
1) To reduce claims to theft: Remember that auto insurance plans include coverage for theft of a vehicle. However, the cost of replacing a stolen vehicle is way higher than the cost of tracking and finding the vehicle. In the event of car theft, the insurance provider would use the tracker to try and find the car thereby reducing the claim it has to pay.
2) To monitor the driving history of drivers: A driver's driving history gives information on the patterns a driver uses to drive an insured vehicle. A vehicle driven by a driver with a bad history would attract a higher monthly premium. The tracker provides this information.
3) To ensure the upkeep of the vehicle: Tracking devices are used to check if the driver is doing routine maintenance and servicing on the vehicle. If not done, the insurance provider would alert him/ her to do so. This is to enable the vehicle not to break down quickly and easily.
We can see that car tracker are cost-saving measures for insurance providers. That is why they offer discounts on cars with trackers.
1) To reduce claims to theft: Remember that auto insurance plans include coverage for theft of a vehicle. However, the cost of replacing a stolen vehicle is way higher than the cost of tracking and finding the vehicle. In the event of car theft, the insurance provider would use the tracker to try and find the car thereby reducing the claim it has to pay.
2) To monitor the driving history of drivers: A driver's driving history gives information on the patterns a driver uses to drive an insured vehicle. A vehicle driven by a driver with a bad history would attract a higher monthly premium. The tracker provides this information.
3) To ensure the upkeep of the vehicle: Tracking devices are used to check if the driver is doing routine maintenance and servicing on the vehicle. If not done, the insurance provider would alert him/ her to do so. This is to enable the vehicle not to break down quickly and easily.
We can see that car tracker are cost-saving measures for insurance providers. That is why they offer discounts on cars with trackers.
