Vehicle tracking systems for insurance

There are two types of vehicle tracking systems for insurance. Unfortunately, if your insurance company specifically requests a Category 5 device, there is no point trying to negotiate with the less expensive Cat 6 system.

GPS vehicle tracking

Both Cat 5 and Cat 6 use GPS vehicle tracking. This means that when the car is stolen, they do not need to be near a police vehicle for the tracking to begin.

Both categories require a monitoring subscription. This is a fee that is paid directly to the company that produced the system installed in the vehicle. GPS monitoring is provided through a secure command center, which is available 24 hours a day, 365 days a year. This level of supervision is always a necessary feature for ongoing insurance compliance.

System differences

However, there are significant differences between the two systems.

First, a Cat 6 system is considerably cheaper to install and also has lower annual subscription costs.

Cat 5 systems are more sophisticated with additional features designed to address particular types of auto theft. These include electronic key duplication, as well as burglary and key theft, ensuring that the police are notified as soon as possible.

One of the main advantages of Category 5 systems is that, once stolen, vehicles can be controlled remotely from the secure command center.

Insurance requirements

Cat 5 devices appear to be an insurance requirement for new cars that exceed a certain value. In these cases, it is generally impossible to obtain insurance without a Category 5 system installed and monitored. Certain car makes and models are associated with this category, and as information is shared by insurance companies, it becomes a database need that is read on the screen.

This is why if your insurance company specifically requests a Cat 5, there is no point in trying to negotiate with the cheaper Cat 6. It will be interesting to see, if cars devalue with age, if a Cat 5 will always be required.

It is unusual for tracking devices to be requested when renewing insurance, for example on high value appreciated cars. However, as vehicles change hands and new policies are needed, this is a time when they can be requested. It’s worth saying that insurance employees rarely know the differences between the two systems, and the type of system required should reflect the current value of the car. Generally, in these cases, unless a car is rare or high value, then a Category 5 system is not reasonable.

Trafficmaster provides Trackstar Cat 5 and Cat 6 systems. Their products are recommended by BMW, Jaguar, Land Rover, Range Rover and are therefore backed by appropriate automaker warranties.

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