Car Insurance: Tracking Systems to Lower Premiums

One of the current ideas introduced by the Department of Transport, has caused quite a stir amongst the general public, with millions even signing a petition against it.

The idea in question would involve fitting cars with specialised “tracking units”, that the government would use to see how far people travel, and hopefully help control congestion.

These uses are not what have caused such a stir though; it is that tracking units could also be used to detect drivers that speed.

In most cases tracking units come bundled with satellite navigation systems.

One of the major advantages of this, from the motorist’s perspective, is that if their vehicle is stolen, they can report this to their satnav provider, who will then work with the police in tracking down the stolen vehicle.

Along with having this extra peace of mind, potential insurers also recognise this as an added security measure, and this is passed on in the form of lower insurance premiums.

For instance, a standard insurance policy for the average car costs in the region of £800. If this car is fitted with a satnav/tracking unit system, insures will usually knock around 5 – 15% off the typical insurance premium, saving the motorist around £80 a year.

So, as you can see, even though many consider tracking units to be an invasion of privacy, they do have some very advantageous points.

Another aspect that can have quite a heavy bearing on the cost of your car insurance premium is where the vehicle is located overnight.

A vehicle parked on the side of the road for example, would tend to be considerably more expensive to insure than one parked in a garage.

Therefore, if you have a disused garage that is large enough to house your vehicle, then it would be wise to utilise it as you could save anything up to 10% on your car insurance premiums.