Does Installing GPS Reduce Bike Insurance Premiums? Benefits Explained

Bike insurance is beneficial because it will shield you from any financial threat in case of an accident, theft, or liabilities caused by a third party. Premiums vary depending on factors such as the type of bike, its Insured Declared Value (IDV), the location where it is registered, the age of the bike, and other underwriting considerations. However, they can be affected by the installation of the GPS tracker on your policy.

Many two-wheeler insurance companies consider bike theft one of the biggest risks involved with owning a two-wheeler and therefore, may be willing to provide discounts or other benefits for the installation of an approved GPS device. However, the reduction in premium depends on the insurer's underwriting policy and whether the tracker meets recognised standards.

What Is a GPS Tracker for a Bike?

A GPS (Global Positioning System) tracker is a small electronic device that is mounted on a motorbike, which will constantly log and transmit the location of the vehicle via satellite and mobile networks.

A modern GPS tracker may contain the following features:

• Real-time location tracking
• Geo-fencing alerts
• Tamper notifications
• Route history
• Overspeed alerts
• Engine immobilisation (applies to selected models)

These features allow for the tracking of vehicles remotely and increase the chances of recovering stolen bikes.

How GPS Trackers Help Lower Insurance Risk?

A GPS tracker mainly helps to reduce the chances of your vehicle being stolen, which is one of the prime reasons for insurance claims in two-wheelers. This is how it helps both the insurers and the policyholders:

• Increases Theft Recovery: Time tracking helps law enforcement agencies and owners to locate stolen bikes faster, increasing the rate of recovery.
• Lowers Claim Frequency: Theft claims could be fully paid by insurers, but the potential for recovered vehicles means this can be avoided.
• Speeds Up Claim Resolution: GPS tracking devices can be used to verify the order of events, and can also be used to increase the efficiency of theft investigations and processing claims.
• Helps in Retaining No Claim Bonus (NCB): If no claim is paid because the bike is recovered, the policyholder may retain the No Claim Bonus, subject to the insurer's terms.

Benefits of Installing a GPS Tracker

GPS trackers have several practical benefits aside from the possibility of insurance savings. Some of these include:

• Better Vehicle Security: Ongoing observation helps owners manage their bikes at all times.
• Real-Time Alerts: Many devices will notify you when the bike has come out of a set range, when the speed has gone above a limit, or if the device has been tampered with.
• Peace of Mind: Having a vehicle tracked means that peace of mind exists because you will know if a vehicle has been stolen, particularly in high-crime areas.
• Improved Fleet Management: Companies that rely on several two-wheelers will have access to better tracking of routes, rider behavior, and vehicle usage.

Things to Check Before Installing a GPS Tracker

Take a moment to review the following checklist to ensure that you're getting the value in security and insurance:

• Choose an ARAI-approved and insurer-accepted GPS tracker.
• Save the purchase invoice and installation documentation
• Notify the insurance company post-installation.
• Regularly test the tracker to make sure it is working properly.

These actions will ensure that the tracker will continue to be effective and will facilitate any insurance obligations that may exist.

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Is Installing a GPS Tracker Worth the Cost?

GPS trackers are usually priced on both the unit and installation fees, and for some devices, a yearly subscription charge as well.

This is an upfront investment, but all this is worth it due to:

• Improved theft protection
• Possible insurance discounts
• Faster process of recovering stolen vehicles.
• Reduced financial losses
• Maximum retention of No Claim Bonus through long-term savings.

How much you save will depend on the insurer’s discount policy and the value of your bike.

Things to Keep in Mind while installing a GPS

GPS trackers come with a number of advantages, but these advantages do not necessarily result in a lower premium.

Here are some essential tips to remember:

• What you can get in premium discounts depends on the insurance provider.
• Anti-theft benefits are only available for approved GPS devices.
• A tracker is not a substitute for full bike insurance.
• Check with your insurance company before you buy a GPS mapping device.

Some insurers may offer premium discounts for ARAI-approved anti-theft devices, subject to their underwriting guidelines and policy terms. Customers looking for more ways to lower their insurance premium should also check with their insurer before purchasing or installing a GPS tracker.

A GPS tracker is a practical way to strengthen your bike’s security, and you could also save on your bike premium by fitting one. GPS devices help riders and insurance companies by decreasing the chance of theft and increasing recovery rates. Premium discounts are not automatic and vary from one insurance company to another. 

But in the long term, an ARAI-certified GPS tracker might help, with better security, easier claims procedures and possible insurance savings. Check with your insurance company whether the device will be covered by any anti-theft clauses before it is installed.