Vehicle Trackers For Insurance Purposes

ByAlex Hunt

As the cost of car insurance is ever increasing a number of insurance firms are turning to GPS car trackers to provide policies that are more affordable to the cautious driver. One of the biggest criticisms of the insurance industry is that it punishes everyone the same - if there is a rise in accident rates or claims then it hits all drivers' pockets.

GPS Insurance

There are now car insurance products available on the market that by using a GPS tracking device placed in your car your driving habits, distances and safety can be monitored and your policy adjusted accordingly. The use of a GPS tracker gives the driver more control over their insurance premiums as it is based on their actual driving ability, rather than the usual risk criteria of postcode, age and vehicle that have been traditionally used to calculate insurance premiums.

Modern car tracking devices are small, discrete but powerful tools, capable of monitoring a number of parameters of a vehicles performance, while also keeping information on how the driver is performing. This will obviously lead to cheaper car insurance and better deals for careful drivers, which many would agree is a fairer system than the current one of treating all drivers as equal.

Government Follow Suit

The use of GPS tracking in cars has also led to the question of road pricing by the government and if insurance firms can use it to benefit their pricing strategies why not use the technology for tax purposes. The argument in this case is that if you are using the car more often then you should contribute more in tax. Should an elderly driver taking a Sunday trip once a week pay the same as a travelling salesperson touring the country?

GPS tracking has made it easier to create pricing or taxing systems that on the face of it seem more equitable. If you drive safely or only take the occasional short trip should you pay the same as dangerous drivers and long distance commuters? In the case of insurance companies, it's a voluntary choice that you can choose to make and benefit your pocket.

GPS Data

Motoquote, DirectLine and the AA are amongst those currently offering driver monitored insurance and feel that it is likely to appeal to inexperienced drivers and parents with children as named second drivers. The added advantage to the insurers is that in the case of a stolen vehicle it is more likely to be quickly recovered if there is a GPS tracker installed.

Alex has developed and tested various types of GPS tracking device including vehicle trackers.

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Insurance: Car-Auto
Alex Hunt

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MLA Style Citation:
Hunt, Alex".".4 Mar. 2012EzineArticles.com.8 Mar. 2012 .APA Style Citation:
Hunt, A. (2012, March 4). . Retrieved March 8, 2012, from http://ezinearticles.com/?Vehicle-­Trackers-­For-­Insurance-­Purposes&id=6919012Chicago Style Citation:
Hunt, Alex "." EzineArticles.com. http://ezinearticles.com/?Vehicle-­Trackers-­For-­Insurance-­Purposes&id=6919012EzineArticles.com© 2012 EzineArticles.com
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