Cut insurance costs with a GPS tracker

Key Takeaways:

• Thatcham-approved GPS trackers can lower your premiums.

• Trackers significantly boost theft recovery rates.

• S5 vs S7: know what your insurer requires.

• Trackers offer more than financial savings.

Car insurance premiums can hit your wallet hard, particularly if you drive a high-end vehicle or live in an area with high theft rates.

For many drivers, car theft is a constant worry, with thousands of vehicles stolen every year – the DVLA says 61,000 vehicles were taken in 2024.

That means fitting a GPS tracker to your car is a proactive step that not only boosts your chances of recovering a stolen vehicle but can also lead to savings on your insurance.

Many insurers now encourage or even mandate the use of trackers for certain vehicles, rewarding owners with premium discounts or policy approvals.

This Ghost Installations article explores how Thatcham-approved trackers can lower your insurance costs while providing robust protection for your vehicle.

Why insurers love GPS trackers

From an insurer’s perspective, a car equipped with a GPS tracker is a lower-risk proposition.

If a vehicle is stolen, a tracker significantly increases the likelihood of recovery, often within a few hours.

This reduces the chance that the insurer will need to pay out the full value of the car, which can be substantial for high-end models like luxury SUVs or sports cars.

According to industry insights, vehicles fitted with a Thatcham tracker can see insurance premium reductions ranging from 5% to 20%, depending on the insurer and the tracker’s category.

For theft-prone models, some insurers may even require a tracker as a condition of cover, ensuring the vehicle is insurable at a competitive rate.

Understanding insurance requirements: S5 and S7 trackers

Many insurance policies, especially for high-value or high-risk vehicles, include specific clauses for theft coverage.

For example, a common insurance clause might state: “The vehicle must be fitted with a Thatcham Category S5 or S7 tracking device within 7 days of policy inception.”

This means the insurer expects a professionally installed, Thatcham-approved tracker with 24/7 monitoring and certification to confirm compliance. Failure to meet this requirement could void your theft coverage, leaving you vulnerable.

For owners of vehicles valued at £100,000 or more, will often find that insurers inquire about the presence of a tracker during the quoting process.

Without an insurance-approved S5 tracker, some insurers may refuse to provide coverage for such high-value cars.

Category S7 trackers, which are slightly less advanced but still effective, are often sufficient for mid-range vehicles and can still unlock premium discounts.

How trackers reduce theft risk

While a GPS tracker doesn’t prevent theft in the same way a Ghost Immobiliser might, it dramatically improves recovery chances.

That’s because when a vehicle is stolen, the tracker’s monitoring centre can pinpoint its location in real-time and liaise with the police to retrieve it swiftly, often before thieves can conceal or dismantle the car.

Many trackers also feature tamper alerts and backup batteries, ensuring they remain operational even if a thief attempts to disable them.

The presence of a tracker can also act as a deterrent.

Visible signs, such as window stickers indicating a tracker’s presence, may discourage thieves from targeting your vehicle in the first place.

By turning a potential theft into a recoverable incident, trackers mitigate the financial and emotional impact of losing your car, which is why insurers are willing to offer discounts.

Real benefits: Recovery stats and success stories

The effectiveness of GPS trackers is backed by impressive statistics.

For instance, vehicles equipped with a ScorpionTrack Driver S5 tracker boast a 96% recovery rate – compared to 50% for vehicles without a tracker.

This high success rate demonstrates why insurers view tracked vehicles as lower risk.

Also, 68% of one tracking company’s recovered vehicles were stolen using keyless theft methods, proving that trackers are effective against modern theft techniques.

Beyond premium discounts, a tracker can reduce the theft excess on your policy or make an otherwise uninsurable vehicle eligible for cover.

For owners of high-risk models, this can be a game-changer, ensuring both affordability and peace of mind.

Choosing the right tracker for insurance benefits

To qualify for insurance discounts, your tracker must typically be Thatcham-approved, falling into either Category S5 or S7.

These trackers are professionally installed, monitored 24/7 and meet stringent security standards, including tamper alerts and backup power.

DIY trackers or smartphone apps, while useful for personal tracking, won’t meet insurer requirements and are unlikely to deliver premium discounts.

• Category S7 trackers: These are entry-level Thatcham-approved devices, ideal for most vehicles. They provide reliable tracking and are often sufficient to secure an insurance discount
• Category S5 trackers: Designed for high-end or high-risk vehicles, S5 trackers offer advanced features like Automatic Driver Recognition (ADR) and remote immobilisation, which are often required for luxury cars.

Choosing the right tracker depends on your vehicle and insurer requirements.

To help, Ghost Installations can advise on the best option and provide professional installation, complete with the certification needed for your insurer.

Beyond insurance: Added protection and peace of mind

A GPS tracker offers more than just financial savings.

Many trackers allow you to monitor your vehicle’s location via a mobile app, giving you real-time visibility.

If your car is moved without permission, you’ll receive an instant alert, enabling quick action.

Some trackers also offer geofence alerts, notifying you if your vehicle leaves a designated area, which is ideal for preventing unauthorised use or catching a theft in progress.

This level of control provides peace of mind, particularly for owners of cherished or valuable vehicles.

Whether it’s ensuring your car is safe after parking in an unfamiliar area or responding to a potential carjacking, a tracker helps protect both your asset and your sense of security.

Trackers are a smart investment for your wallet and car security

Fitting a Thatcham-approved tracker is a dual-benefit solution: it reduces your insurance premiums and significantly enhances your vehicle’s security.

For many drivers, the savings on insurance over a few years can offset the cost of the tracker and its subscription, making it a financially savvy choice.

Beyond the numbers, the peace of mind that comes with knowing your car is protected and recoverable is invaluable.

To explore your options, contact your insurance provider to confirm their tracker requirements and potential discounts.

If you’re ready to take the next step, Ghost Installations can guide you in selecting the right Category S5 or Category S7 tracker and provide professional installation with the necessary certification – call us today on 0800 470 2525 to find out more.