Vehicle Tracking Saves On Insurance

Many companies already use vehicle tracking to reduce their operational costs and increase productivity. However, a little known fact about vehicle tracking is the way that it has revolutionized the insurance overheads of these customers.

The majority of insurance companies are now providing significant premium discounts, in some cases up to 30%, to companies and individuals that have a tracking system installed, regardless of whether it is a fleet tracking system or a security/anti theft system. Some insurers are even using tracking to help young drivers insure their vehicles at an affordable cost. This is all made possible as the tracking price tag continues to fall.

Fleet vehicle tracking is a system that provides companies with an oversight of its vehicles movements as well as reporting on their drivers journeys and driving behaviour. Fleet vehicle tracking not only encourages employees to drive more efficiently and responsibly but also records the vehicle’s location in real time 24 hours a day, therefore dramatically increasing the vehicles security and improving the chances of recovering a stolen vehicle quicker.

Many tracking systems provide an ‘alert’ feature. Alerts provide an additional security benefit for companies that have a fleet of vehicles that operate within set hours. A good example would be a company whose vehicles are only operated between the hours of 08:00am and 19:00pm. Should one of their vehicles become active and start moving outside of their working hours the tracking system can immediately provide an alert via email or SMS.

Vehicle tracking is also able to aid companies in quickly resolving disputes relating to vehicle accident claims, thus protecting them from unnecessary increases in their insurance premiums. Many companies that operate larger vehicles such as Lorries experience false insurance claims being made against their drivers. Vehicle tracking data can be used as admissible evidence as it records location, date and time and can, therefore, prevent the success of such claims. Tracking also records the vehicles speed and direction and helps overcome false claims of drivers being accused of causing an accident through dangerous driving or speeding.

Thatcham Category 5 Security Tracking:

As its name suggests, security tracking is primarily used to increase the protection of a vehicle without offering the extra features of a fleet tracking system.

A covert tracking device is installed into a vehicle that immediately sends an alert, normally to a control centre, when it detects an unusual event such as moving with the ignition off or a heavy contact. The tracking system continues to record the vehicles movements until it has been either recovered by the police or confirmed by the owner that the vehicle has not been stolen.

Traditionally, due to the high cost of tracking and the requirements of vehicle insurance providers, security tracking was generally only installed into high value vehicles such as executive and sports cars. Although security tracking is still a requirement to be able to insure some ‘high end’ vehicles, it is becoming increasingly popular in all genres of vehicles. This is commonly attributed to the cost reductions in tracking, combined with the insurance discounts that can be achieved, outweighing the overall costs over a period of time.

Use our free comparison service to compare tracking companies and then contact your insurance provider to see how much you could save.