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One of the most important questions insurance companies ask during their risk profiling process is whether you have a tracking device installed, as this increases the safety of your vehicle. In South Africa, having a tracker is also often an insurance requirement for higher value vehicles. says Wahl Bartman, Group CEO at Fidelity Services Group.

‘Investing in a vehicle monitoring and tracking system is the final step in ensuring the safest possible driving experience. Whether it is your family car or a fleet of trucks, knowing that you always have visibility into your investment not only gives you peace of mind, but can also save you a lot of money in the future,” he explains. “This is because installing a vehicle repair device can reduce insurance premiums quite dramatically, saving you money in the long run.

Bartmann reiterates that since tracking systems are not standard on vehicles, it is important to consider what happens to the system if your vehicle is in an accident or if you decide to sell the vehicle.

Here’s what consumers need to know:

1. When a vehicle is sold – transfer of ownership

There are a number of options available depending on whether you still have a contract with your tracking company or whether you have a monthly contract.

If you still have a contract:

Try to convince the buyer of your vehicle to take over your tracking service contract. This requires your tracking company to complete a transfer of ownership if the buyer wants to take over the contract.

If the buyer refuses to take over your obligations, you will remain liable for the monthly subscriptions until the termination of the contract. However, you can request that the contract be canceled and the company will usually grant this against a cancellation fee (which must be in accordance with the provisions of the Consumer Protection Act). The Consumer Protection Act allows the provider of tracking services to recover reasonable costs if a customer cancels his contract within the period.

2. When a vehicle has an accident

If you still have a contract:

If your vehicle is repairable and after the repairs have been made, you should request that your tracking company test the device or perform a quality inspection on the device to ensure that the device is functioning optimally. This is particularly important for insurance purposes.

It is therefore important to check with your insurer whether the device is fully covered in the event of an accident or if your vehicle is stolen/hijacked and not recovered. Your insurer will likely reimburse you for the loss of the tracking device, which may cover cancellation fees with the tracking company.

3. Removing the device (if selling or scrapping the vehicle after an accident) and deactivating services (if selling or scrapping the vehicle)

If your vehicle cannot be repaired and your insurer has decided to write it off, you will need to request that the tracking company cancel the contract. Again, the tracking company will cancel your contract with a cancellation fee, which must be in accordance with the provisions of the Consumer Protection Act.

Bartmann says that thanks to the technology available today, tracking devices are highly traceable and have an encouraging recovery rate, which can keep your family safe in a hijacking or kidnapping situation.