What is a car insurance tracking device?
Insurance tracking devices are small devices that gather information captured by your car’s computer and provide it to the insurance company. The devices won’t change the way your car operates (they won’t limit your top speed or when and how you drive) and won’t cause any harm to it.
Why do insurance tracking devices exist?
Tracking devices allow insurance companies to accurately identify their safest drivers and then reward them with discounts. The discounts are also an excellent way for insurers to attract new customers.
The devices may also help control the price of auto insurance for people who don’t have them installed. How? By helping insurance companies combat phony insurance claims. According to the FBI, each year, insurance companies pay over $40 billion for phony claims. And part of the cost for those phony claims gets passed along to honest customers. Insurance tracking devices help stop fraud and help keep insurance prices from rising.
So, how might insurance trackers identify fake claims? Let’s look at an example. A driver might claim that he was driving responsibly when an animal darted in his path, causing him to brake suddenly, slide off the road, and wreck his car. However, the data collected by the insurance tracker might tell a different story. The tracker may help the company determine that he crashed due to reckless driving or even in a deliberate attempt to collect the insurance money.
How do car insurance trackers work?
Insurance trackers plug into your car using a port typically found below your steering wheel. This is the same connection that a mechanic uses to read your car’s computer data and discover any problems with your vehicle. The insurance company’s device also reads your computer’s data. But instead of looking for issues with the car’s operation, it scans for information connected to what the insurer needs to know about your driving habits.
Do insurance companies track your speed?
The answer depends on the insurance company and its policies regarding its tracking devices. However, the capability is there. The tracking device can, in theory, read any information that your car’s computer processes — and that includes speed. If you’re not sure, ask the company. They may explain that tracking your speed gives them a better understanding of your driving habits. After all, drivers who obey speed limits tend to be safer drivers.
What else do insurance companies track?
Speed isn’t the only thing insurance trackers can monitor. Here are some other pieces of data they can track:
- Your car’s location
- The date and time of your trip
- How quickly you accelerate
- How aggressively you apply your brakes
- How fast you turn corners
- If you make and receive phone calls (using the car’s technology) while driving
- Your mileage
- How frequently you drive
Do tracking devices reduce your insurance costs?
An insurance company may give you an immediate discount on your insurance simply for agreeing to use their tracking device. Generally, the company will provide a way for you to keep track of your potential savings. For example, you might be able to check the company’s app to instantly see if your driving habits are saving you money. The information may constantly update, giving you an up-to-the-minute picture of your insurance costs and savings.
Should you let your insurance company monitor your driving?
Because most people are unfamiliar with insurance trackers, the devices can often seem strange and even frightening. Some people immediately get nervous at the thought of their driving habits being monitored.
However, other drivers have embraced insurance trackers as a fair and legitimate means to save on their insurance. When insurers see that your driving habits present a low accident risk, they’re more likely to give you better rates. And seeing your insurance rate go down could inspire you to become an even safer driver.
Are there risks of using car insurance tracking devices?
In this age of hackers, some people fear that information about their driving habits will be stolen and used against them. But insurance companies routinely encrypt the data they collect from your car so that it’s useless to anyone who might intercept it. The companies also typically agree not to share your data with anyone except law enforcement agencies when legally required to do so. But if you’re concerned about security, ask the insurance company.
It’s important that you understand what a particular company’s insurance tracker will monitor before you agree to its installation. You also want to be clear about how this information could affect you. For example, if you primarily use your vehicle to drive a short distance to work, you might expect an insurance discount. But what if you work at night? Will you receive a penalty for driving the car during late-night hours? What if you have to drive through a high-crime area during your commute? Will this also affect your insurance rate?
Do your research and ask lots of questions. Insurance trackers have the potential to save drivers money, but only you can determine if they’re right for you.
FAQs
The vehicle's location is provided by telematics hardware installed in the vehicle communicating with a GPS Satellite network. The installed telematics device collects and transmits the important vehicle and driver data in real time. Using cellular networks data is sent on to regional servers.
Is it worth saving money to let a car insurance company track your every move? ›
Do insurance trackers save you money? Yes, it's possible for these trackers to save you money on your car insurance premiums. If you're a safe and responsible driver and you don't drive often, an insurance tracker can report this back to your insurer, who can then offer a discount on your premium.
Can insurance companies track your vehicle? ›
You may be wondering whether your car insurance company can track your car. UBI (or good driver) programs are voluntary. In other words, your insurance company can only track your vehicle if you opt into a program. If you've opted into a program and no longer want to participate, you can also opt out.
How do insurance companies track your mileage? ›
Usually, they rely on the information they collect from special equipment they install in the vehicle. They're known as insurance trackers or telematics.
Can my car be tracked without me knowing? ›
GPS trackers are small devices that use GPS and cellular technology to monitor a car's location in real-time. Some trackers are visible, but many are tiny and lightweight, making them easy to hide. In fact, many trackers are smaller than a deck of cards, so they can be used for spying without being noticed.
How do car insurance apps know who is driving? ›
A telematics device — more commonly called a car insurance tracker, safe driving app or other names in that vein — uses GPS or an accelerometer to collect data about your driving habits.
Why do insurance companies want to track your driving? ›
The insurance company receives data on your driving which, in turn, helps to determine the amount you pay for coverage. This is a reality today for some—it's called usage-based insurance (UBI) or telematics and increasing numbers of insurers are offering this option.
What happens when you unplug a car tracker? ›
However, when a GO device is unplugged, the device will keep the data for at least a month. Vehicle and driver data is stored in the internal memory, which does not require power to preserve records. Unless the data is purposefully erased, any information provided to the database by the device will be stored there.
Does a tracking device reduce insurance? ›
Equally importantly, your insurance company will see the benefit of having a Tracker in your car. Once you inform them you have had the device installed as an extra security and protection measure they will be able to offer you a lower premium to reflect your efforts to prevent your car from being stolen.
Can insurance track my phone? ›
Can an insurance company track my phone? An insurance company can't unilaterally decide to 'track your phone'. That would be an invasion of privacy and is quite probably unlawful. But technologies are being deployed that will utilize your phone as a reporting device, assuming you give permission.
Built-in GPS Tracking Systems in Cars #
- High-end luxury cars, such as BMW, Mercedes-Benz, and Audi.
- Mid-range vehicles, like Ford, Toyota, and Honda.
- Electric cars, such as Tesla and Nissan Leaf.
How do tracking devices work? ›
GPS trackers connect to a series of satellites to determine location. The tracker uses a process called trilateration which uses the position of three or more satellites from the Global Navigation Satellite System (GNSS) network and its distance from them to determine latitude, longitude, elevation, and time.
What is considered high mileage for insurance? ›
If you drive a lot, insurance companies will charge you higher premiums because they're taking on more risk. Generally, anything over the U.S. average annual mileage (roughly 14,000 miles) is considered high and will result in a rate hike.
How do insurers know how many miles you do? ›
Generally speaking, insurers will ask you for an estimate of your total mileage, but they might also take an annual odometer reading for verification purposes as well. If they choose to use databases or repair shops' information, they could have an accurate odometer reading at any point in time.
How far can a car tracking device work? ›
The simple answer is that the range of a GPS tracker is virtually limitless on the surface of the Earth. As long as the GPS tracker can receive signals from at least four satellites, it can accurately determine its location, speed, and direction.
Can a car tracking device be detected? ›
Criminals may use handheld or vehicle-mounted radio frequency scanners to detect signals emitted by GPS trackers. By scanning common GPS frequencies, they can identify the presence of tracking devices nearby.
Does a GPS tracker need internet? ›
GPS does not require any form of internet connectivity. GPS depends on signals from satellites. Anyone can harness these signals using a GPS receiver. You can test this fact by turning off the internet connection on your phone and using Google Maps.
How do tracked vehicles work? ›
Continuous track or tracked treads are a system of vehicle propulsion used in tracked vehicles, running on a continuous band of treads or track plates driven by two or more wheels.