Does Installing a Tracker Reduce Insurance?

It’s not every day that peace of mind comes with a discount, but a car tracker can offer both. If you have ever wondered, “Does a tracker lower insurance? ”, a tracker in your vehicle doesn’t just boost security; it could also save you money on your insurance.
As car theft methods become more sophisticated, insurers increasingly reward drivers who take proactive steps to protect their vehicles. In this guide, we’ll explore how vehicle trackers work, why insurers value them, and how they can help lower your premiums while offering peace of mind.

What is a Car Tracker and How Does it Work?

A car tracker is a GPS-based device installed in your vehicle to monitor its real-time location. It uses satellite signals and, in some cases, mobile networks to transmit data to a connected app or monitoring service, which allows owners, or even law enforcement, to track the vehicle’s movements. Some advanced vehicle tracking systems also offer additional features, making them a powerful tool in theft prevention and recovery.

Types of Car Trackers: GPS, Passive, and Thatcham-Approved

Not all car trackers are created equally; some simply record data, while others provide real-time updates and meet stringent insurance standards. The right type for your vehicle will depend on your needs, budget, and whether your insurer requires a specific standard for coverage discounts.

Here are three common categories of vehicle tracking systems:

• GPS Trackers: GPS trackers offer live, real-time location monitoring via satellite and mobile data. These devices are ideal for quickly locating a stolen vehicle. Plus, they often come with mobile apps for driver convenience.
  
• Passive Trackers: Passive trackers don’t transmit data in real-time but instead store location history, speed, and route information that can be downloaded later. While more affordable, they’re better suited for fleet monitoring or usage tracking than immediate theft recovery.
  
• Thatcham-approved Trackers: Thatcham-approved trackers meet the UK’s highest security standards and are often required by insurers for high-value or at-risk vehicles. These trackers are professionally installed and monitored 24/7, offering features like police liaison and automatic theft alerts.

How Trackers Help Reduce Theft and Improve Recovery

Car trackers act as both a deterrent and a recovery tool, making them a valuable line of defence against theft. The presence of an insurance approved car tracker, such as a Thatcham-approved one, can discourage criminals who know the vehicle’s movements can be traced in real time. If a theft does occur, trackers significantly increase the chances of a quick recovery, often within hours, by transmitting the car’s exact location to the owner or law enforcement.

Many trackers also come with features like movement alerts, remote immobilisation, and geofencing, which notify you immediately if the car is moved without your knowledge. In high-risk areas or for valuable vehicles, these extra layers of protection can make a big difference. By improving the odds of recovery and reducing potential payouts, insurers are more likely to offer lower premiums to drivers who use tracking devices.

Can Installing a Tracker Lower Your Insurance Premiums? 

Installing a tracker can help lower your car insurance premiums, particularly if your vehicle is considered high-risk or high-value. Insurers are more likely to offer a tracker insurance discount when the device and system improve the likelihood of recovering a stolen vehicle quickly, reducing the financial risk for them. Some providers even require Thatcham-approved trackers for specific cars before issuing comprehensive coverage.

While not every insurer guarantees a discount, many consider trackers a sign of responsible ownership and proactive security. It’s a good idea to speak with your insurance provider to see if your tracker qualifies for a reduced rate and whether certain features like 24/7 monitoring or police support make a difference. Over time, the potential savings can help offset the cost of purchasing and installing the device.

What Insurance Providers Look For in a Tracking System

Insurance providers don’t just accept any tracker; they look for specific features that indicate reliability, effectiveness, and enhanced theft recovery potential. The most commonly preferred option is a Thatcham Category S5  or S7 approved tracker, which meets rigorous UK security standards and is often a requirement for high-value vehicles. These trackers typically include features like 24/7 monitoring, Global Positioning System (GPS) and Global System for Mobile Communication (GSM) tracking, driver ID tag or fob recognition, and instant theft alerts.

Insurers also value systems with real-time location tracking, remote Ghost Immobilisers, and tamper alerts, as they significantly improve the chances of recovering a stolen vehicle quickly. Devices that are professionally installed by certified technicians are generally favoured over DIY models, as they offer more reliability and tamper resistance. Before purchasing a tracker, it’s wise to confirm with your insurer which models they recommend or require to qualify for any insurance discounts.

Factors that Affect Whether You Get a Discount

While installing a car tracker can lead to lower insurance premiums, several factors influence whether you receive a discount:

• The Type of Tracker: This is a major consideration as insurance companies are more likely to offer savings for Thatcham-approved systems, like Category S5 or S7 models.
  
  
• Prioritised Tracker Features: If the system features like real-time GPS tracking, 24/7 monitoring, and police integration, it is viewed more favourably.
  
  
• Vehicle Type and Value: Higher-risk or luxury vehicles benefit more from added security, making discounts more likely.
  
  
• Additional Considerations: Location and theft risk in your area, your insurance provider’s policies, and whether the tracker is professionally installed can all impact your eligibility.

Tip: To maximise your chance of savings, speak directly with your insurer and confirm which tracker models they recognise for discounts.

Get Further Discounts with a Dash Camera

Installing a dash camera can offer additional savings on your car insurance when combined with a tracking device. Dash cams provide clear video evidence in the event of an accident or theft attempt, which can speed up claims processing and help prove fault, making you a lower-risk driver in the eyes of insurers. Some providers offer discounts simply for having a dash cam installed, particularly if it records while the car is parked and captures incidents like vandalism or attempted break-ins.

Pro Tip: Beyond potential discounts around Dash Cameras to Reduce Insurance , dash cams also promote safer driving and add another layer of accountability on the road, making them a worthwhile investment for both security and savings.

Get Further Discounts with a Car Alarm

Fitting your vehicle with a modern Car Alarm system can lead to additional insurance discounts, particularly when it’s paired with a tracker. Alarms act as a strong visual (by using LED lights and warning stickers) as well as an audible deterrent, alerting you and others nearby if someone tries to break into or tamper with your car. Insurers often recognise this added layer of protection as a proactive step in reducing theft risk and will reward vehicles equipped with both an immobiliser and an alarm, particularly when the system is Thatcham Category 1 approved.

How Much Can You Save vs the Cost of Installation?

The potential insurance savings from installing a tracker can vary, but they often offset the initial cost over time, notably for high-risk vehicles. On average, drivers may save between 5% to 20% on their annual insurance premium with a recognised tracking system, depending on the insurer and the vehicle’s risk profile. For expensive cars, these savings can be substantial.

Tracker devices and installation costs typically range from £200 to £600, depending on the type of tracker and whether it includes feature-rich systems like 24/7 monitoring or remote immobilisation. While the upfront investment may seem high, the added security, increased recovery chances, and long-term savings can make it worthwhile. In many cases, the peace of mind alone is worth the price, more so if your insurer requires a tracker for full coverage.

Tip: While the device and installation will present some upfront fees, be sure to also factor in a monthly subscription to the tracking service, which can start at £15 per month.

Tips for Talking to Your Insurer About Using a Tracker

When discussing tracker-related discounts with your insurer, preparation is key. Understanding various points not only gives you better insurance insights but also equips you with the right talking points to make sure you get the best arrangement. Refer to the following tips on starting a conversation with your insurer:

Tip 1 – Check Recognised Models

Start by checking which tracker models they recognise or require. Many insurers only offer discounts for Thatcham-approved devices, particularly Category S5 or S7 systems. Have the tracker’s brand, model, and certification details ready to streamline the process.

Tip 2 – Installation Requirements

Ask about any installation requirements, such as needing a professional fitting or proof of set-up. If you’re considering installing a tracker, request a quote comparison with and without the tracker to see how much you could save.

Tip 3 – Compare Policies

Finally, don’t hesitate to compare policies between insurers. Some may offer more generous discounts or better theft cover for vehicles with approved tracking systems. Also consider how tracker use might affect Comprehensive vs. Third Party coverage, as some insurers only offer tracker-related discounts or theft recovery benefits under comprehensive plans.

FAQs

Will a tracker reduce my car insurance?

Yes, many UK vehicle insurers offer lower premiums if you install an approved vehicle tracker. Thatcham Category S5 or S7 systems are favoured. Trackers reduce theft risk and improve recovery chances, which helps insurers minimise losses.

Is it worth putting a tracker to my car?

Yes, installing a car tracker can be a smart investment, especially for high-value or at-risk vehicles. It boosts theft protection, aids recovery, and may lower your insurance. Over time, the added peace of mind and potential savings often outweigh the upfront cost.

Which trackers qualify?

Most UK insurers recognise Thatcham-approved trackers, particularly Category S5 and S7 models. These meet strict security standards and often include real-time tracking, driver ID, and 24/7 monitoring. Always check with your insurer to confirm which tracker models are accepted for discounts.