Car trackers and telematics devices can support safer, more secure, and more accountable vehicle use, and for some drivers and businesses, this may help reduce insurance premiums.
Whether a car tracker lowers your insurance, however, will depend on your insurer, the type of policy you have, the vehicle being insured, how the tracker is used, and whether the device meets any specific requirements set by your insurance provider.
In this blog, we’ll explore what insurers look for when it comes to car tracker insurance, when a tracking device may help lower premiums, and share some key questions you may want to ask your insurer before installing a tracker.
What do insurers look for when it comes to car tracker insurance?
When it comes to car tracker insurance, insurers are usually interested in how the tracker helps reduce risk.
A standard GPS vehicle tracker can help show where a vehicle is, where it has been, and how it’s being used. This can support vehicle security, stolen vehicle recovery, and fleet visibility.
However, if your insurer has asked for a tracker, they may have specific requirements. This could include:
- The type of device
- Whether it needs to be professionally installed
- Whether it needs to be Thatcham-approved
- Whether an active subscription must be maintained
Before choosing a tracker, it’s always worth checking with your insurer so you understand exactly what they require, as installing the wrong type of tracking device may not satisfy the conditions of your policy.
How can car trackers reduce risk and potentially lower insurance premiums?
Car trackers can help reduce risk in several ways. While this doesn’t guarantee cheaper insurance, it can make your vehicle or fleet easier to monitor, manage, and protect.
Here are some ways a car tracker can reduce risk and potentially reduce your insurance premiums:
Reduced theft risk
A visible or known tracking system can act as a deterrent because it makes a stolen vehicle easier to locate.
For businesses operating fleets, this can be especially valuable. Vans, cars, trucks, HGVs, trailers, and plant equipment can all be important business assets, so reducing the risk of theft can help protect both your vehicles and your wider operations.
Faster stolen vehicle recovery
If a vehicle is stolen, a GPS tracking device can help identify its location more quickly. With a Fleetsmart vehicle tracking device, it gives your business access to up-to-date vehicle location information, helping you see where your vehicles are and where they’ve been. This information may support recovery efforts and reduce the risk of a vehicle being permanently lost.
For insurers, faster recovery of a stolen vehicle can reduce the chance of a total loss claim, which is one reason some providers may take tracking devices into account, although you should always check with your insurer whether a specific device meets their requirements.
Safer driving data through telematics
Telematics can help monitor driving behaviour, including speed, harsh braking, acceleration, mileage, and journey patterns.
This data can help drivers and businesses identify risky driving habits and take steps to improve them. Over time, safer and more consistent driving may help reduce the likelihood of avoidable incidents.
For businesses, this can also support driver training, internal reviews, and improved accountability across the fleet.
Reduced unauthorised vehicle use
Unauthorised vehicle use can increase mileage, fuel spend, wear and tear, and potential insurance risk.
With vehicle tracking, businesses can monitor when vehicles are being used, where they’re travelling, and whether journeys match expected working patterns. Tracking features such as journey history, out-of-hours alerts, and Geo-Fence alerts can help managers identify unusual activity more quickly.
This gives businesses better control over how vehicles are used and may help demonstrate responsible fleet management.
Better claims evidence
Vehicle tracking data can also provide useful supporting information if a claim needs to be reviewed.
Journey history, location data, and time records may help confirm where a vehicle was, when it arrived, when it left, and how it was being used. This can be helpful for businesses that need clearer records around vehicle activity.
A dash cam can also support claims by providing video evidence, although it’s worth noting that dash cams and vehicle trackers are different tools.
Why are insurance discounts not guaranteed?
Although car trackers can support security, recovery, and safer driving, they don’t automatically reduce insurance premiums.
Insurance pricing depends on many factors, including:
- Vehicle type
- Driver
- Claims history
- Annual mileage
- Location
- Usage type
- Security measures
- Insurer appetite
A tracker may be one factor in the overall risk profile, but it’s not the only one.
Some insurers may offer a tracker car insurance discount, some may not, and some may require a tracker as a condition of cover without reducing the premium.
This is why it’s always best to speak to your insurer before installing a tracker specifically for insurance purposes.
What are some questions to ask your insurer before installing a tracker?
Before you install a tracker for insurance purposes, it’s worth asking your insurer a few key questions.
For example, you may want to ask:
- Do you offer a discount for vehicles fitted with trackers?
- Do you require a specific type of tracker?
- Does the tracker need to be Thatcham-approved?
- Does the tracker need to be professionally installed?
- Do I need to provide proof of installation?
- Does the tracking subscription need to remain active?
- Will telematics data affect my premium at renewal?
- Does this apply to business vehicles, personal vehicles, or both?
- Are there any policy conditions linked to the tracker?
Getting these types of questions answered before you go ahead with installation can help you avoid choosing a tracker that doesn’t meet your insurer’s requirements.
Get started with GPS tracking today
At Fleetsmart, we can provide vehicle tracking solutions that help businesses improve visibility, security, and control across their vehicles.
From monitoring live vehicle locations and setting Geo-Fence alerts, to tracking driver behaviour and identifying unauthorised use, our tracking solutions are built to work for your everyday operations. And with our optional features such as remote immobilisation and dash cams, you can build a tracking setup around the needs of your business.
If you’re looking to improve vehicle security, support safer driving, and gain better visibility across your fleet, we can help. Get in touch with us today to discuss your vehicle tracking requirements in more detail and to obtain a tailored quote.
Car tracker insurance FAQs
Does a car insurance tracker reduce premiums?
A car insurance tracker may help reduce premiums in some cases, but savings aren’t guaranteed. Cheaper premiums will depend on numerous factors such as your insurer, policy type, vehicle, tracker type, and whether the device meets any specific requirements.
What type of tracker do insurers require?
The type of tracker required will depend on the insurer and policy. Some insurers may ask for a Thatcham-approved tracker, while others may have their own approved device requirements. You should speak to your insurance provider to find out their specific tracker requirements.
Do I need a Thatcham-approved tracker for insurance?
You may need a Thatcham-approved tracker if your insurer specifically asks for one. This is more common for higher-value vehicles or vehicles that are considered at higher risk of theft.
Can telematics increase my insurance premium?
Yes, telematics can sometimes increase insurance premiums if the data suggests higher-risk driving, such as frequent speeding, harsh braking, high mileage, or regular driving at higher-risk times.
Does a dash cam reduce insurance premiums?
A dash cam may help with claims evidence, but insurance discounts may vary. A dash cam is different from a vehicle tracker because it records video rather than live location, journey history, or telematics data. Speaking with your insurance provider can help clarify whether a dash cam will affect your premiums.
Should I tell my insurer if I install a tracker?
Yes, it’s worth telling your insurer if you install a tracker, especially if you’re hoping it may reduce your premium or meet a policy requirement. Your insurer can confirm whether the tracker is recognised and whether any discount applies.
