- Category: GPS Tracking
How Technology Is Reducing Risk & Insurance
GPS Tracking Devices Bring Big Savings
Anyone who has ever been seduced by a commercial advertising a new car sale probably was a little disappointed when they actually arrived at the car lot. The disappointment comes with the realization that in order to purchase that shiny new car the buyer must invest in full-coverage car insurance. The problem with full-coverage car insurance is that many times the insurance coverage can be more expensive than the monthly car payments, making that limited time sales extravaganza not as cost-saving as initially suspected. However, what many knowledgeable consumers are doing to bring down the cost of the expensive car insurance associated with the purchase of a new vehicle is investing in real-time GPS tracker technology.
The function of a car insurance provider is assessing risk. Higher risk can come in many forms, drivers with poor driving records, the value of the vehicle or the age of the driver. Insurance providers want the buyer to be protected, but they also want to make sure that payments reflect risk.
So what is one of the easiest ways consumers can reduce the risk of vehicle theft, and thereby reducing their insurance payments?
The answer is simple, GPS tracker technology.
Real-time tracking devices allow a consumer to always be in contact with their vehicle. When a vehicle is equipped with a GPS tracker the car’s owner can access the vehicle’s location at anytime by simply logging onto to the Internet, or computer that has the tracking system’s software downloaded. Therefore, if a situation were ever to occur where a car thief was able to break into the new car and drive off with it, the owner would be able to follow everywhere the car thief was going, relaying that data to local police.
Insurance providers understand that when a person has a GPS tracking device equipped to their vehicle that the likelihood of that vehicle being stolen and not recovered is very slim. Being experts of risk management, insurance companies know that the use of a GPS tracker means less risk, and less risk means lower payments for the consumer. Therefore, many car insurers are now offering reduced rates for consumers who equip real-time GPS trackers to their vehicles.
Teen drivers, a demographic viewed by all insurance agencies as high-risk drivers, have also been able to receive substantial discounts on monthly car insurance premiums if a parent equips the teen's vehicle with a GPS tracker.
With the current recession plaguing the entire globe there has never been a better time to purchase a new car. The statistics associated with core durable goods have shown that over the past two years car are not moving off the lots like they once used to, making now the time to buy. However, consumers need to be ready that with the purchase of that new car will come a costly insurance premium; that is unless they invest in GPS vehicle tracker technology for a theft recovery application, reducing their risk and insurance payment