Fitting a dashcam and tracking device to your car could lead to lower insurance premiums, said Sakina Ntuli, spokesperson for King Price Insurance.
However, the significance of the reduction depends on the type of vehicle and the applicable insurer.
“It is likely that the installation of a tracking device can reduce your monthly insurance premium,” Ntuli told CapeTalk radio station.
“But, if it is not a requirement [from your insurer] for your vehicle to have a tracking device, the reduction isn’t significant.”
Generally speaking, not all vehicles are required to be fitted with trackers. It’s only high-risk models such as double-cab bakkies and certain SUVs which are forced to have this extra layer of security.
Should the owner of a high-risk model neglect to install such a device, the insurer is within its rights to reject claims related to theft and hijacking of the vehicle and will usually charge a heftier monthly fee for limited coverage.
“If you don’t have [a tracking device] installed, you’ll still be covered for the other perils, but not theft and hijacking,” said Ntuli.
If you drive a low-risk car, Ntuli said a premium reduction is still a possibility should you decide to install a tracker, but not a guarantee.
Extra peace of mind
While tracking devices are essential to retain cover against theft and hijacking at some insurers in South Africa, a dashcam is usually recommended but not required.
King Price previously said that a dashcam lowers your risk profile as it is an effective tool for safeguarding your wheels.
An insurer looks at your risk profile when determining your monthly insurance premiums, which is dependent on factors such as your age, address, claims history, the type of vehicle, and security measures related to the vehicle including whether it sleeps in a locked garage at night and is fitted with things such as trackers and dashcams.
In most cases, the more boxes you tick, the lower your premium goes, and vice versa.
“[Dashcams] can record every detail of your journey, ready to assist with perfect memory recall in the case of an incident,” said King Price.
As per vehicle telematics firm Cartrack, just the presence of a visible dash camera is also “enough to make wrongdoers think twice before targeting your vehicle.”
As such, a dashcam could prove to be a valuable accessory not just for safety but also long-term savings.
“Not only can additional protective measures put your car at a lower risk of theft and hijacking, but it can also lower your insurance premiums as a result,” said King Price.
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