How Using GPS Trackers can Reduce the Insurance Cost for Your Cars

How Using GPS Trackers can Reduce the Insurance Cost for Your Cars

GPS trackers for cars are often seen as novel gadgets that are nice to have. Many Indian car owners consider it as an ornamental addition to their costly and luxury cars. However, the truth is, these GPS trackers have become an integral part of the safety and security of the cars. There are a myriad number of uses for this. 

Installing a GPS Tracker for Car Helps in Many Ways

A GPS tracker for a car is a small device that is either externally powered or powered by an in-built rechargeable battery. These devices are placed inside the dashboard or other places that are hard to reach. As the device uses GPS to track the real-time location of the vehicle, it is highly reliable and accurate. So, you can find where the vehicle is moving and even gather other details like how fast it is moving.

Pay Lower Premiums for Insurance

You might be surprised to know that insurance providers often charge lower premiums to vehicles that have installed GPS trackers. Most people don’t know the presence of such options and hence don’t use this to their advantage. With the introduction of new and advanced technologies that can provide real time telematics of the cars, insurance providers have the ability to charge premiums according to the threat levels of the locations and risks associated with the cars.

Car Theft Can be Averted & Stolen Cars Can be Retrieved

For a starter, one of the most common reasons for insurance claims is car theft. When a car is stolen, it is easier to find the same and retrieve it with an in-built GPS tracker. This reduces the risk for the insurance company and hence these companies provide a lower insurance premium for cars with a tracker. Similarly, coordination with law enforcement agencies is much easier as you can share these data and get faster recovery of your stolen cars.

Driving Habits & History will Help in Analysing the Risk

Modern devices gather crucial telematics and provide the same to the tracker. So, for instance setting up a GPS tracker helps in understanding if the driver engages in rash driving that can lead to accidents. Similarly, when a car is frequently taken to risky localities like hill stations, wetlands, and other harsh environments, then the risk associated with such places is sufficiently higher than normal. In case of usage of a car in a violence-hit or places where the terrorism and insurgency is high, naturally the risk for your vehicles is higher than any other normal condition. This telematics data along with the risk profile of the area of operation and driver risk gives an approximate idea about the insurance coverage for the company. As a result, insurance companies will need to charge a higher premium for providing the same cover for the car.

 

Minimise the Insurance Premium for Your Car - Install a GPS Tracker

GPS tracker price for a car is around ₹2,800 and it comes with a number of features that provide excellent safety and continuous monitoring options for your cars. For instance if you are driving a car worth more than 10 Lakhs, the approximate insurance premium would amount to ₹18,000 per year. The cost for higher priced cars could go more than ₹25,000 also. So, when you install a GPS tracker, the effective price of your insurance premium is lower than what it used to be. For instance even after including the GPS cost of around₹3,000, the insurance premium would only amount to ₹18,000 to ₹20,000. In addition to the lower insurance cost you get 24/7 telematics of the car. So, what are you waiting for?

Buy the latest GPS tracker for your car from Fleet Track today.


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