Will a Car Tracker Reduce My Insurance Premium?

30 Mar 2023 16:21:00

Will a car tracker reduce your car insurance? The answer is yes, almost certainly! Installing a car tracker is a great way to save money on your car insurance. Thatcham approved car trackers are designed to improve vehicle security, which provides insurers with the reassurance they need to reduce your car insurance.

The cost of your car insurance is determined by how likely it is that your provider will need to pay out for it. This takes a number of factors into consideration, like driving history, car model and likelihood of theft. If your car is stolen, it leaves insurers with the hefty bill of replacing it. Installing a car tracker is one of the best ways to protect your vehicle against theft, so it makes sense that having one would reduce your insurance premium. 

How much does a tracker reduce your insurance?

Asking how much does a tracker reduce your insurance is a bit like asking how long is a piece of string. It’ll depend on a number of factors, such as the type of car tracker you buy and the features that it has. In general, the better the car tracker, the bigger the savings. Some insurers may even refuse to insure your car unless you install a car tracker. 

So, how exactly does a car tracker reduce your insurance price so much?

Car trackers make your car more secure

When calculating your insurance premium, one of the things providers consider is how secure your car is. That includes how likely it is to be stolen, and how easy it would be to recover your car if it was stolen. After all, they have to pay to replace it. A tracking device has multiple ways of keeping your car safe, including theft recovery and use of advanced technology.

Car theft recovery

The most obvious way car trackers improve your car’s security is theft recovery. All Thatcham approved car trackers monitor your vehicle’s location 24/7. There’s a team of remote operatives who look out for suspicious movements, so they can spot theft immediately. As soon as your car is stolen, they’ll contact police and provide updates on the car’s location, which gives you the best chance of recovering it.

Thatcham approved S5 trackers offer even more protection. In addition to 24 hour monitoring, all S5 trackers come with a driver identification device. This could be a small card or key fob, which must be present when the engine is started or the system will immediately alert to a theft. This adds an extra layer of protection and means there’s no way a theft can slip through the net.

Here at Trackerfit, many of our systems also include additional features like remote immobilisation, motion sensing alerts and much more! Plus, most have European or even worldwide coverage, so your car is still protected overseas. 

Having a car tracker increases the chances of recovering your vehicle in the event of a theft. That means your insurer won’t have to buy a new vehicle, which brings the cost of insurance down.

Car trackers use advanced technology

Car trackers use the latest technology to provide the best protection for your car. Most car trackers use GPS or GSM technology. Put simply, GPS trackers use a process called trilateration where they send signals to 3 satellites orbiting Earth. The system then uses the distance from these three satellites to pinpoint its exact location. GPS is one of the most accurate tracking signals.

Some trackers use a VHF signal on its own or in addition to GPS. VHF stands for very high frequency signal. The great thing about VHF is that it can’t be blocked or scrambled, so you can find your car even if it is in an underground car park or shipping container. 

Most car trackers also have motion-sensing technology, which protects your car against thieves who attempt to tow or roll your car. The motion sensors will alert to movement and send a signal to the control centre as soon as your car is taken. The tracker will continue to provide updates on its location to help you find it.

Car trackers improve safety

Car trackers can also improve your driving ability. Some car trackers provide you with data about your driving, including speed, handling, gear changes and more. This data can help you to become a more safe, courteous driver, reducing the chances of a collision.

This also has the added benefit of helping you cut down on running costs. You can plan routes and adjust your driving to the road, saving time, fuel and money.

Car trackers are proactive

Having a tracker fitted also suggests a proactive approach to your car’s safety which insurers will consider a positive. It shows that you’re likely to put steps in place to reduce the potential risks to your vehicle where possible. 

The best insurance approved car trackers

If you want a car tracker to reduce your insurance, here are some of our top picks.

MetaTrak S5 VTS

  • 24 hour monitoring

  • 2 x driver identification tags

  • Optional immobilisation

SmarTrack S5 with D-iD

  • 24 hour monitoring

  • Free tracking app

  • Driver identification system that uses your mobile as ID

Trackstar S5 Advance

  • 24 hour monitoring

  • 2 x driver identification tags

  • Automatic immobilisation if engine is started without driver ID


Even though a tracker is an extra cost upfront, it will save you money on your car insurance for years to come, making it a worthwhile investment. For more information on which car tracker is right for you, call us on 0800 096 3092.


Posted in News By TrackerFit