Insurers are always looking for ways to improve their business. They are most vulnerable when they insure assets such as motor vehicles (of any kind). These quickly lose their value and are often targeted by thieves due to their mobile nature. It makes sense for insurance companies to embrace GPS tracking systems and require them to be installed where they can.
Here are three ways insurance companies benefit from GPS tracking.
Insurance companies are all about reducing their risk because the lower their risk, the higher their profit. When customers install GPS Tracking devices in their vehicles, they are traceable from virtually any point above the ground. This means that even if the vehicle is stolen, the chances of getting it back are almost one hundred percent. That means the risk is reduced.
Also, most of these insurance companies pass savings to their customers on their policies as an incentive to implement these devices. The real question is, how long before insurance companies start requiring ALL their customers to have GPS Tracking units installed in every vehicle insured by them?
Recover stolen items
Should your vehicle ever be targeted by thieves, you can get it back faster. By cooperating with the local police in providing location information, they can respond quickly to where the vehicle is located and even if the vehicle is on its way, they can get the coordinates so they can intercept it. This helps ensure that the vehicle does not end up in pieces on a chipper. Or that the vehicle has been destroyed and damaged beyond repair.
Insurance companies, if you will, make an ‘investment’ in the value of the vehicle by insuring it against loss. GPS tracking helps protect that investment, also allowing the owners to maintain their value in the vehicle against the loan. It is a real win-win for all parties involved.
It doesn’t take much to realize how important GPS tracking devices have become in protecting expensive items like cars and trucks. What is inexplicable is why it takes so long to take this idea and install one. The benefits to insurance companies are too great to ignore.