Will a Tracker Reduce My Insurance Premiums?

In the UK, the rising cost of car insurance is a significant concern for many drivers, us included.

With premiums affected by various factors, including age, driving history and the type of vehicle you’re insuring, finding ways to reduce these costs is a common goal we all share.

One method that is gaining popularity is the installation of vehicle tracers. But does having a tracker truly lead to lower insurance premiums? Let’s explore this question in detail.

What is a Vehicle Tracker?

It might sound obvious to many, but for those new to Infiniti, a vehicle tracker is a device installed in a car that uses GPS and often many other technologies to monitor the location of the vehicle in real-time.

There are different types of trackers available, ranging from simple location-based devices to more sophisticated systems that monitor driving behaviour, such as speed, acceleration and even driving patterns.

These devices are primarily used for security purposes, helping to recover stolen vehicles or monitor the location of fleet vehicles. However, they are increasingly being considered for their potential to reduce insurance premiums.

With this in mind, the question we wanted to answer for you is will a tracker reduce your insurance premiums? Let’s take a look.

The Link Between Trackers and Insurance Premiums

The idea behind using a vehicle tracker to reduce insurance premiums is rooted in risk management.

Insurance companies calculate premiums based on the risk associated with insuring a particular vehicle and its drivers. By installing a tracker, the perceived risk can be reduced in several ways:

1. Theft Prevention and Recovery: A vehicle equipped with a tracker is less likely to be permanently lost if stolen, as the device can help the police recover the car quickly. This reduced risk of total loss makes the vehicle less of a liability for the insurer, potentially leading to lower premiums. Insurers are often more willing to offer discounts for cars with trackers because they know that the chances of recovering the vehicle in the event of theft are much higher.
   
2. Improved Driving Behaviour: Some trackers, particularly telematics devices, monitor driving behaviour. These devices can track how fast you drive, how hard you brake and even the times of day you typically drive. Insurers can use this data to assess how safe a driver you are. If the data shows that you are a cautious driver who adheres to speed limits and drives mostly during safer, daytime hours, your insurance company may offer lower premiums as a reward for your low-risk driving habits.
   
3. Lower Mileage and Usage Tracking: Trackers can also monitor the amount of mileage covered. Some insurance policies, particularly as pay-as-you-drive or usage-based insurance policies become more common, are using mileage as a key factor in determining your premiums. If the tracker shows that you drive fewer miles than average, your insurance premium could be reduced to reflect the lower risk of accidents associated with less time spent on the road.
   
4. Enhanced Security Features: Modern trackers often come with additional security features such as geofencing, which alerts you if your vehicle is moved outside a designated area, or tamper alerts that notify you if someone tries to disable the tracker. These features further reduce the likelihood of your car being stolen or damaged, which can positively impact your insurance premiums.

Will All Insurance Companies Offer Discounts for Trackers?

While the potential for reduced premiums with a tracker is real, not all insurance companies offer discounts for having one installed. The availability of discounts varies depending on the insurer and the type of policy you’re buying.

Here are some points to consider:-

• Specialist Insurers: Some insurers specialise in providing coverage for drivers and vehicles deemed to be high-risk, such as high-end luxury cars or young drivers. These companies are more likely to offer discounts for vehicle trackers because they understand the enhanced security and risk management that these devices provide.
  
• Telematics Policies: Insurers offering telematics or “black box” policies are most likely to offer discounts based on driving behaviour tracked by these devices. These policies are particularly popular with younger drivers, who typically face higher premiums across the board. The data collected by telematics can demonstrate responsible driving, which may lead to lower costs.
  
• Traditional Insurers: Larger, more traditional insurance companies may not offer significant discounts for trackers unless they are specifically part of a telematics policy. However, even if a direct discount is not provided, having a tracker can still be advantageous when negotiating a renewal with your insurer or when switching providers.

How Much Could You Save?

The potential savings on insurance premiums from installing a tracker can vary widely.

Some estimates suggest that drivers could save anywhere from 5% to 30% on their premiums, depending on the type of tracker and the insurer’s policy.

For young drivers or those with high-performance vehicles, the savings could be more substantial due to the higher baseline premiums.

It’s important to note that the initial cost of installing a tracker should be weighed against the potential savings.

Trackers can cost anywhere from around £150 (for the basic models) up to £550 for more advanced systems with additional features. Additionally, some trackers require ongoing subscription fees for services like real-time monitoring or theft alerts.

You can see our full range of trackers here in our store or, if you prefer, you can look specifically for our S5 (the highest category of protection) or S7 trackers linked accordingly.

Considerations Before Installing a Tracker

Before deciding to install a vehicle tracker, there are a few factors to consider including:

1. Type of Tracker: Choose a tracker that meets your specific needs. If your primary goal is to reduce insurance premiums, a telematics device that monitors driving behaviour may be the most effective option. For those more concerned with theft prevention, a basic GPS tracker may suffice.
   
2. Insurance Policy Terms: Review your insurance policy or consult with your insurer to understand how a tracker could impact your premiums. Some insurers may require specific types of trackers to qualify for discounts, or they may only offer discounts under certain conditions.
   
3. Installation Costs: Factor in the cost of purchasing and installing the tracker, as well as any ongoing subscription fees. Make sure the potential savings on your insurance premiums justify these expenses. It’s important to mention that quite often professional tracker installation is a mandatory requirement, so you’ll need a reputable company (like us) to install it for you. Please give us a call if you need any help with that as once purchased, we can install it at a time and place to suit you.
   
4. Data Privacy: With telematics devices, consider how comfortable you are with sharing your driving data with your insurer. While these devices can lead to savings, they also provide detailed information about your driving habits that some drivers may find intrusive.
   
5. Maintenance: Ensure that the tracker is properly maintained and that any subscriptions are kept up-to-date. An inactive or faulty tracker may not qualify you for the insurance discounts, and in some cases, it could even lead to higher premiums if your insurer believes the tracker is still operational when it is not.

If you have any questions or concerns about choosing a tracker, then you can always give our dedicated Customer Service team a ring and we’d be happy to talk to you about what you need and help you choose the best option for you.

The Future of Vehicle Trackers and Insurance

As technology continues to evolve, vehicle trackers are likely to play an increasingly significant role in the insurance industry. The trend towards personalised insurance, where premiums are tailored based on individual behaviour rather than broad demographic factors, is likely to grow. This shift could lead to more widespread adoption of telematics and tracking devices, with insurers offering more competitive rates to those who demonstrate lower-risk behaviour.

Additionally, as vehicles become more connected and autonomous, the line between traditional car insurance and technology-based policies may blur. Trackers and other telematics devices could become standard features in new vehicles, making them an integral part of how insurance premiums are calculated.

Is a Tracker Worth It?

So, will a tracker reduce your insurance premiums? The easiest and probably most obvious answer you’d expect from us, given we sell car trackers is yes, but in reality, the answer is.. it depends.

For many drivers, especially those with high-risk profiles or expensive vehicles, a tracker can indeed lead to significant savings. However, the extent of the discount will vary based on the type of tracker, the insurer and the driver’s individual circumstances.

Before installing a tracker, it’s important to do your research. Compare the costs of different devices, understand the specific terms of your insurance policy, and consider how much you could realistically save on your premiums. We have a huge range in our store so take a look at the features they offer and which might be best for you.

For those who drive safely and are looking to reduce their insurance costs, a tracker could be a valuable investment. However, it’s essential to weigh the potential benefits against the costs and privacy concerns to determine if it’s the right choice for you.

As mentioned already, if you’re struggling to make sense of it or just need some simple, honest and impartial help and advice from a company with decades of vehicle security experience, then please give our team a ring on 0330 043 3993. We’re available Monday to Friday from 9am to 6pm and we’ll be more than happy to help find the right tracker.