If you’re like most people, you’re always looking for ways to save a little money. Shopping around for the best auto insurance rates can certainly help, but there are other ways aside from comparison shopping that you can earn lower premiums. Whether you’re an individual or a business with a fleet of vehicles, installing GPS tracking units in your cars can help you get a lower auto insurance rate with many providers.
Why? Because GPS tracking reduces the risk that you will need to file a claim, and insurance rates are all about your level of risk. GPS may help to reduce auto insurance rates for four reasons:
GPS tracking improves driver behavior. If your teen driver or employee knows that their driving behavior is monitored, they will be less likely to speed. GPS tracking allows you to know how fast the car has been traveling, so that you can enforce consequences for poor driving behavior. Safer driving leads to a lower likelihood of accidents, so insurance companies are happy.
GPS tracking reduces claims due to theft. If your vehicle is stolen, GPS tracking almost ensures that it will be found and a large claim on your auto insurance policy.
GPS tracking gives you vehicle maintenance alerts. Many GPS units are capable of telling you when it’s time to change the oil or tires. This reduces the likelihood of an accident, and makes insurance companies happy.
GPS tracking discourages misuse of the vehicle. This pertains mostly to business owners, although parents of teen drivers find it useful for personal reasons. Insurance companies are happier knowing your company vehicles aren’t being driven for personal use.
Different insurance companies have different formulas for calculating risk, and ask them whether a GPS unit can earn you a discount. In many cases you will find that the savings you earn will quickly make up for the cost of the device.