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By Greg Bartlett

It is common knowledge that insurance companies prefer not to have to pay out in claims. It is also common knowledge that insurance companies often offer discounts for passive safety equipment, such as airbags, in vehicles because these devices can reduce injuries, and thus, the amount of money paid out in claims. What may not be common knowledge is that GPS tracking systems in vehicles can qualify for discounts with many insurance companies.

In the past, vehicles were stolen for one of two reasons. Either someone was looking for a “joy ride”, or a professional thief had an outlet for selling the parts stripped from a stolen car in a short time period, making it profitable to steal vehicles. In either case, the vehicle, if ever recovered, was often in such a state that the insurance company was forced to total it and pay out its full value.

GPS tracking systems are now installed at the factory on many vehicles. However, they do not offer the vehicle owner direct access to the tracking. In this case, you are being tracked, but you don’t know who is tracking you. The best tracking solution is an aftermarket device that can be purchased at a low cost. In the event that a vehicle equipped with a GPS tracking system is stolen, one telephone call can have the device activated to transmit on a frequency that police can receive and track the exact location of the vehicle. Often, the thief can be apprehended and the car recovered before any major damage is done to the vehicle.

For this reason, many insurance companies are willing to offer a discount on insurance premiums for vehicles equipped with GPS devices. Having a chance to recover the vehicle with a minimum of damage reduces the costs incurred by an insurance company in claims. They often offer discounts as an incentive to have vehicles equipped with tracking devices.

Everyone knows that insurance companies offer discounts on premiums as an incentive to have passive safety devices installed in a vehicle. Tracking devices added as an aftermarket item work to protect property in much the same way that airbags protect the people in a vehicle. Both types of devices reduce the amount of money that insurance companies are forced to pay out in claims, thus both types of devices can merit discounts on premiums as an incentive to have these devices installed in a vehicle. A GPS tracking system can also lead to more arrests, reducing the number of car thieves working and cutting down on the number of vehicle thefts.

For more information about GPS, contact Rocky Mountain Tracking, Inc., at 877-477-9668 or visit them online at RMTracking.com.