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Reduce Your Car Insurance Using Telematics And GPS Tracking

Whilst you might be a safe driver who has never had to make an insurance claim, you will undoubtedly be […]

Whilst you might be a safe driver who has never had to make an insurance claim, you will undoubtedly be paying higher car insurance premiums in order to cover the costs of those drivers who are not so safe.  There is a way in which you can lower your rates though, and that’s by installing a GPS tracking device into your car.  This method is called by a variety of names including black box insurance, GPS cover, or sometimes tracker car insurance.

It’s a relatively new science in the car insurance world, but works on a number of different metrics which let the insurance company see whether you are a safe driver or not – which will then let them offer you a lower annual rate.

GPS Monitors Your Driving Hours
The premise is rather simple in reality.  A GPS vehicle tracking device is fitted to your car which then tracks and monitors how you are using your vehicle.  It checks to see whether you are driving in what are deemed to be safe hours –for example, during day light hours.  In order to quality, you will need to see if your insurance company offers “telematics” or “GPS tracking insurance”.  If they do then they will fit your vehicle with a GPS tracker (occasionally there will be an annual charge to do so).

Track Driver Behavior With GPS Tracking
This then lets them track your driving behavior, and if you are conforming to their rules regarding safe driving then your insurance premiums and costs will be downgraded.  Of course, if you drive outside of the agreed hours then it’s likely that you will actually have to pay more – so you need to decide if this would really work for you.

GPS tracking-based insurance is a good option for younger drivers.  Whilst they might baulk at the idea that they cannot drive at night time, this is probably countered by the fact that they can reduce their car insurance payments which are typically very expensive for young and first-time drivers.

Using Telematics Provides More Advanced Data
Some insurance companies go even further with their telematics GPS tracking services and track how the speeds, braking, and driving style of the driver – not just the driving hours.  By examining driver behavior, the company can get a really accurate idea of the type of person they are insuring and offer varying levels of cover to suit.  It’s possible for the driver to login to an online tool with their insurance company and see how they are scoring.  Then of course, they can adjust their driving patterns to make sure that they qualify for cheaper insurance when the renewal period comes around.

Expect to see this kind of insurance deal being offered more and more in the future.  With the price of GPS technology rapidly falling, as well as the devices getting a lot smaller, it’s something that more car insurance companies will soon start to adopt. If you want to save money then ask your insurer if this is something that they currently offer.

Want to Know More? For more news, views, and information on the GPS industry including how you can update the digital maps with all models of GPS please visit

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