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Why Doesn’t my Tracking Device Decrease my Car Insurance Premium?

Written by Michele Wilmonen. Posted in Ask An Insurance Question Last Updated: 10/01/2017

Q: I have a tracking device on my car, but my car insurance company won’t give me a discount on my car insurance for having it, why? Isn’t this a safety feature for if the car gets stolen?

A: Yes, it is a safety feature for WHEN the car gets stolen. The car insurance companies look at tracking devices as a safety feature that will help in the recovery of a stolen vehicle, not one that would prevent the vehicle from being stolen in the first place. This is why they don’t offer a discount for it off your car insurance premium and instead will waive your comprehensive deductible if your vehicle is ever stolen and you do have a tracking device on it.

This may sound silly because that tracking device will help get your car back to you and you won’t need the claim anyway, but if they do find your vehicle after it has been stolen and it has been stripped for parts, the offer is really not as silly as it may sound at first.

Also, tracking devices are not always dependable. I checked mine from the bus the other day and it said my car was parked 100 miles south of me up in the mountains, not at the transit center where I had parked it that morning. I went into full panic mode that my car had been stolen, only to find it safely parked right where I had left it that morning.

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Michele Wilmonen

Michele’s first introduction to insurance was working for a major insurance company as a file clerk and a mailroom supervisor in a regional office. She learned insurance directly from underwriters and claims adjusters from questions and also watching them do their job. Since then, she’s earned a number of insurance certifications from the Insurance Institute of America and also a Bachelor’s degree from the University of Idaho. She blogs at Car Insurance Guidebook.

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