For business vehicles, a GPS vehicle tracking system has become a vital component. Fortunately, it is easier for small businesses to implement a tracking system thanks to today's tracking technologies that are inexpensive and simple to set up. But do you know a GPS vehicle tracking device can affect your insurance?
When providing a car insurance quote, insurance companies consider a variety of personal and vehicle information, including the drivers age, parking residence location, car make and model, and, most importantly, the security features that will protect the vehicle.
Car GPS trackers are one of the greatest methods to lower your insurance rate since they give significant security and recovery features that insurance companies look for when determining claim reduction.
Read on to learn more about vehicle GPS tracking devices and how they can lower your car insurance rates.
What Are Vehicle GPS Tracking Devices?
Vehicle GPS trackers are portable devices that allow vehicle owners to monitor and track their cars and trucks. Real-time GPS trackers for automobiles can offer instant speed and position data, while less costly solutions save this data for later use. You can set up real-time warnings with certain GPS car trackers to go off when a motorist speeds or deviates from a specified region.
How Do Vehicle GPS Trackers Work?
GPS tracking employs a network of satellites to identify the precise position of a GPS-enabled gadget. Based on its distance from three GPS satellites, A GPS tracker employs trilateration to identify its physical location. The data is then transmitted to a receiver that displays real-time tracking information and enables remote monitoring and theft recovery.
What Are the Benefits of Vehicle GPS Tracking Devices?
There are multiple benefits to having a car gps tracker installed. Some of the most common benefits are:
- Significantly unauthorized vehicle use.
- Automate the reporting of mileage, engine hours, driving hours, and job site time.
- Control and lower your fuel expenditures.
- Back-office dispatchers will benefit from visibility into fleet activity.
- Route stops (jobs, deliveries, etc.) can be easily organized, managed, and optimized.
- Increase vehicle security (or retrieve stolen automobiles).
- Keep a close eye on teenagers as they begin they begin the next phase of their lives as drivers.
Reasons Why Insurance Companies Love GPS Tracking
The more safety measures you have in place for your vehicle such as winter tires and garage parking, the more insurance companies tend to reduce your rates. While car GPS trackers are a relatively new concept for consumer driving, their popularity is increasing and there are also many reasons why insurance companies are jumping on board to lower rates for vehicles that have them installed.
GPS Tracking Reduces the Likelihood of Vehicle Theft Claims
Given a variety of circumstances, installing a car tracking system on your vehicle reduces the likelihood of it being stolen greatly. To begin with, car trackers dissuade criminals since they know they may be readily traced down and are less likely to choose a vehicle with a tracker installed. Even if a burglar does take a chance and steal the automobile, vehicle trackers offer a lot of capabilities that allow you to reclaim your vehicle much faster. Thanks to this insurance companies can even provide you with various discounts.
Remote Alarm Activation
Another factor that insurance companies evaluate when pricing a policy is theft prevention, and here is where placing a GPS monitoring system in your car may assist in decreasing your insurance costs. GPS trackers allow you to activate your vehicle alarm remotely, attracting the attention of individuals in the neighborhood and preventing potential theft.
Safe Driving Is Encouraged by Vehicle Tracking
Vehicle tracking frequently functions as a deterrent to drivers who are prone to speeding and driving recklessly, lowering the chance of accidents by making drivers more responsible. Vehicle insurers are aware of this, which is why they may offer cheaper premiums for automobiles equipped with GPS trackers.
GPS Trackers Encourage Proper and Timely Vehicle Maintenance
Routine fleet vehicle maintenance may be tracked using GPS tracking. This system predicts vehicle maintenance, giving fleet managers an additional maintenance tool. A car with a tire blowout or other technical problem is more likely to cause an accident. GPS monitoring brings out real-time warnings when car repair is necessary, assisting you in avoiding such accidents. Any vehicle that can be successfully tracked in real time is far more secure. Taking this proactive measure will lower your fleet's insurance prices. Many insurance companies offer reduced rates to businesses that use telematics vehicle tracking technology.
GPS Tracking Reduces Fleet Vehicle Misuse
Drivers are less inclined to utilize their fleet vehicles for personal purposes when they are aware that their car is being tracked. This will be especially welcome by insurance companies, as issues often occur when cars have an issue while being utilized for activities for which they are not insured, such as personal errands.
Disables the Vehicle
An additional benefit that GPS car trackers provide that insurance companies value when quoting an insurance policy is the remote disable feature. If your vehicle is stolen, a GPS car tracker will allow you to remotely block the ignition so that the vehicle cannot be moved and you can cooperate with authorities to retrieve it.
Vehicles Are Less Likely to Experience Accidents
Another advantage of GPS tracking is that it reduces the chance of accidents. When you track how your drivers use your car, they are less likely to use it for personal travels, and they are more likely to be cautious with mileage and not deviate from the most direct path. Insurers understand that the longer a vehicle is driven, the greater the likelihood of any form of mishap. In other words, you may save money on insurance by reducing unneeded and personal miles traveled by your personnel. All of this adds up to greater annual savings on your bottom line and higher earnings.
Helps Manage Miles
You are more likely to be involved in an accident, the more miles you drive. By recording all miles, it is more probable that corporate cars will be used only for important business, limiting the number of miles traveled and decreasing the probability of an accident. GPS tracking can also assist in minimizing kilometers traveled by improving route and trip planning. Some insurance companies offer car insurance premiums that include insurance discounts for low-mileage vehicles, and a tracking device can help you achieve this much more easily.
Provides Replay Features
Car tracking systems can operate as "black boxes" in the case of an accident, allowing assessors to work faster and more accurately since the seconds before the accident can be recreated, including facts such as the vehicle's speed and direction, as well as exact timings. The car tracker data is kept in a cloud-based software for quick access and reference throughout an accident investigation. Insurance companies can check these data and give various reliefs to vehicle owners.
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