GPS Tracker Car Insurance Discount—worth the cost?

In today's world, technology has infiltrated every aspect of our lives, including vehicles. One such technological advancement is the GPS car tracker. These devices can provide peace of mind to owners by helping to locate their vehicles in case of theft or other mishaps. Many insurance companies offer discounts for vehicles equipped with car trackers. But is this discount worth the cost of installing a tracker? CheapInsurance.com takes a look at the options.

Key Takeaways

• Car trackers can offer significant benefits, including theft deterrence, recovery assistance, and peace of mind.
• Car tracker installation costs can vary widely depending on the type of tracker, installation method, and dealership or aftermarket provider.
• Insurance companies often offer discounts for vehicles equipped with car trackers.
• The financial benefits of a car tracker may not always outweigh the initial investment and ongoing subscription costs.
• Ultimately, the decision to install a car tracker depends on your individual needs and priorities.

Factory-Installed New Car Trackers

Many car manufacturers now offer car tracker solutions as a factory-installed option. These systems are often integrated seamlessly into the vehicle's electrical system, providing a more streamlined experience for the owner. Some popular examples of factory-installed car tracker solutions include:

• General Motors OnStar: This system offers a range of features, including remote start, stolen vehicle assistance, and emergency response.
• BMW ConnectedDrive: BMW's system provides features like remote locking, navigation, and vehicle health checks.
• Toyota Safety Connect: This system includes roadside assistance, automatic collision notification, and stolen vehicle tracking.

These factory-installed trackers often come with a basic subscription plan, which typically includes core features like stolen vehicle assistance and emergency response. The cost of this subscription can vary depending on the manufacturer and the specific features included. It's important to note that additional features or services may require higher subscription tiers or one-time fees.

Dealership-Installed New Car Trackers

If your car doesn't come with a factory-installed tracker, your dealership can often install one for you. Dealership-installed trackers provide similar benefits to factory-installed options and may come with additional services or warranties.

Popular car tracker brands offered by dealerships include:

• LoJack: Known for its stolen vehicle recovery capabilities, LoJack systems can be a valuable investment.
• Tracker: This brand offers a range of tracking solutions, including real-time location updates and geofencing.
• SkyTrak: SkyTrak systems provide features like stolen vehicle recovery, remote immobilization, and vehicle diagnostics.

Installation costs:

• New cars: Installation costs for new cars can vary depending on the make and model of your vehicle, as well as the specific features of the tracker you choose. You can expect to pay anywhere from $500 to $1,000 for a basic installation.
• Used cars: Installing a tracker on a used car may involve additional labor costs. Expect to pay slightly more than for a new car, typically between $600 and $1,200.

Ongoing subscription costs:

• Monthly fees: Most car tracker systems require a monthly subscription to access full features. These fees can range from $10 to $30 per month, depending on the provider and the level of service.
• Contract terms: Some dealerships may require you to sign a long-term contract for the tracker and subscription. Be sure to review the terms carefully before committing.

Additional services:

• Remote start: Some trackers offer remote start functionality, allowing you to start your car from your smartphone.
• Geofencing: Geofencing allows you to set up virtual boundaries for your vehicle. If the vehicle leaves these boundaries, you will receive a notification.
• Vehicle diagnostics: Some trackers can monitor your vehicle's health and alert you to potential problems.

Consider these factors to make an informed decision about whether a dealership-installed car tracker is right for you.

Aftermarket Car Trackers

If you prefer to avoid going through your dealership or car manufacturer, aftermarket car trackers offer a wide range of options to choose from. These trackers can be installed by a professional or even by the vehicle owner themselves, depending on the specific model.

Popular aftermarket car tracker brands include:

• GPS Tracker: This brand offers a variety of affordable tracking solutions with basic features like real-time location updates and stolen vehicle recovery.
• SpyPoint: SpyPoint trackers are known for their durability and long battery life, making them suitable for off-road vehicles and outdoor activities.
• AM GPS: AM GPS offers a range of trackers for both personal and commercial use, with features like geofencing, speed alerts, and trip history.
• Tile: Tile trackers are small and easy to attach to your keys or belongings. They can also be used to track your vehicle if you have a Tile tracker installed in your car.

Equipment costs:

• Basic trackers: Entry-level trackers can be purchased for as little as $100. These devices typically offer basic features like GPS tracking and stolen vehicle recovery.
• Advanced trackers: More sophisticated trackers with additional features like geofencing, remote start, and vehicle diagnostics can cost upwards of $500.

Installation costs:

• DIY installation: Some basic trackers can be installed by the vehicle owner with minimal technical knowledge. However, professional installation is often recommended to ensure proper functionality and security.
• Professional installation: Expect to pay between $100 and $300 for professional installation. The cost will vary depending on the complexity of the installation and the location of the tracker.

Ongoing subscription costs:

• Monthly fees: Aftermarket car trackers typically require a monthly subscription to access full features. These fees can range from $10 to $30 per month, depending on the provider and the level of service.
• Contract terms: Some aftermarket tracker providers may require you to sign a long-term contract. Be sure to review the terms carefully before committing.

Additional features:

• Real-time tracking: Most aftermarket trackers offer real-time location updates, allowing you to monitor your vehicle's movements.
• Stolen vehicle recovery: In case of theft, a tracker can help law enforcement locate your vehicle.
• Geofencing: Set up virtual boundaries for your vehicle and receive alerts if it leaves these boundaries.
• Remote start: Start your car remotely using your smartphone.
• Vehicle diagnostics: Monitor your vehicle's health and receive alerts for potential problems.

When choosing an aftermarket car tracker, consider your budget, the features you need, and whether you are comfortable with DIY installation. 

Possible Tracking Service Discounts For Car Insurance Quotes

The amount of insurance discount you can expect on your installed tracking device for car insurance quotes depends on your insurance provider and the specific features of your tracker. Some insurance companies may offer up to a 15% discount on your insurance premium, while others may provide a flat dollar amount reduction.

When considering the financial benefits of a car tracker, it's important to factor in the total cost of ownership, including:

• Initial purchase and installation costs: These costs can vary depending on the type of tracker you choose and whether you opt for professional installation.
• Ongoing subscription fees: Monthly subscription fees are typically required to access the full features of a car tracker.
• Insurance discounts: The discount you receive from your insurance company will offset some of the costs, but it may not fully cover the initial investment or ongoing subscription fees.

In addition to financial benefits, car trackers offer several other advantages, including:

• Theft deterrence: Car trackers can deter thieves, as they know their vehicle's location can be easily traced.
• Recovery assistance: In case of theft, a car tracker can significantly increase the chances of recovering your vehicle.
• Peace of mind: Knowing your vehicle's location can provide a sense of security and peace of mind.

Concerns About Car Tracking Services

• Cost: The initial cost of purchasing and installing a car tracker can be a significant investment.
• Privacy Concerns: Some people may have concerns about privacy, as car trackers can track their vehicle's movements.
• Technical Issues: Like any electronic device, car trackers can malfunction or experience technical problems.

Recommendation

Whether or not a car tracker insurance discount is worth the cost depends on your individual circumstances. If you are concerned about vehicle theft, live in a high-crime area, or simply desire peace of mind, the benefits of a car tracker may outweigh the costs. However, if you are not particularly worried about theft and are satisfied with your current insurance premium, the discount may not justify the investment.