Saving money is a big concern these days. While people are clipping coupons and shopping at garage sales, they may be neglecting a much more substantial savings. An investment in GPS tracking can pay off in insurance savings for the consumer (whether an individual or a company). Insurance companies give discounts for such things as low mileage, anti-theft devices, teenage tracking and safe driving.
Some insurance companies offer discounts for drivers who drive less than a certain number of miles each year. However, many claim this discount only to violate the terms of it. Several large insurance companies now offer a low mileage discount to those drivers who will agree to use GPS to record their odometer readings.
For truly low mileage drivers, the discount can be substantial: even up to 26% of the annual premium rate. The insurance company earns savings by eliminating credits for those who don’t actually qualify for the discounts, and those savings are passed on to drivers who do.
Another way that consumers can save with GPS tracking is to claim the anti-theft discount many insurers offer. This is commonly used with commercial fleets and also by rental car companies. The devices can be programmed to alert the company if the car goes beyond prescribed boundaries.
GPS tracking can qualify companies for safe driver fleet discounts by monitoring driver behaviors such as hard braking, speed and turns and weaves. Drivers who are aware they are being watched will usually drive more cautiously and carefully. Teen drivers aren’t exactly fleet vehicles, but sometimes they also need to be tracked and it can pay off in savings to parents in reduced insurance premiums. The GPS unit can alert the parents when the young person violates conditions such as not arriving at school, being a certain distance from home or exceeding a certain speed limit.
Vehicle owners can find further savings with GPS-equipped cars, which can save money by suggesting the shortest route and helping drivers avoid getting lost. They can be alerted to traffic jams and unsafe conditions. Fewer stops and starts and less miles translates into money saved especially with today’s high fuel prices.
GPS technology is a timely investment that will pay for itself in reduced insurance premiums, not to mention reduced fuel costs and peace of mind for parents who are tracking teens. More and more insurance companies will harness this technology in the future to reduce their costs which then can be passed on to you, the consumer.
Article Written by Greg Bartlett