Some financed vehicles are required to have a tracking device fitted. While this protects the bank’s asset, it also lowers the insurer’s risk, often leading to lower monthly premiums. But is a discount guaranteed, and how much can you actually save?
For all the excitement of getting a fresh set of wheels and showing the Joneses next door who’s boss, the administrative compliance attached to a new purchase can be a real headache. Like the extra cash you have to fork out for mandatory comprehensive insurance. Or, having a tracking device fitted as part of the latter package, which sets you back even more cash. Is it possible, though, that this grudge purchase can actually put a few rands back in your pocket every month?
How much can a car tracker save you on your monthly insurance premium?
Given the out-of-control cost of living plaguing most South Africans, most of us can do with some good news.
Because your new car will likely be easier to recover after it’s stolen, an approved tracking device may result in a lower premium, but in truth the saving varies by insurer, vehicle, risk profile and policy. Here’s where the smart savings lie: the reduction in your premium absorbs some of the cost of the tracker’s monthly subscription.
On popular theft targets such as keyless-entry-equipped double-cabs, certain SUVs and hatchbacks, the resulting premium saving may even offset the tracker’s monthly subscription.
Depending on the type of tracker or installed telematics, additional layers of data detailing driver behaviour, such as cornering speed, throttle and braking application, are also available. As an aside, while the info is useful for fleet managers, such opt-in behavioural add-ons raise privacy issues that every owner should consider.
When is a tracking device mandatory for South African car insurance?
Some financed vehicles are required to have a tracker, particularly higher-risk vehicles.
It’s also no secret that South Africa features several hijacking hotspots. If you live in high-risk areas in Gauteng and KZN, and drive vehicles identified as a high risk for theft, the fitment of a tracker (in some cases 2 per vehicle) is a non-negotiable insurance requirement.
If your policy schedule lists a vehicle tracker as mandatory, your failure to fit one or maintain an active subscription will likely see your insurer repudiating any theft claims.
Mandatory rules: Will any tracking device qualify for an insurance discount?
Right, you see yourself as a bit of a bargain hunter. You hate paying for your vehicle tracker because you think it’s unnecessary. And the stuff is often overpriced by colluding installers, right?
Temu, here you come.
Wrong … possibly. It’s important to make sure the device meets your insurer’s requirements.
Not every GPS device sold online will satisfy an insurer’s security requirements. Depending on the vehicle and policy, the insurer may specify an approved tracking provider, a particular type or category of stolen-vehicle-recovery device, or approved fitment.
The Motor Vehicle Security Association of South Africa (VESA) says its stamp of approval involves an SABS-compliant product, installation by a VESA member in accordance with VESA specifications, and a current VESA certificate.
So before buying a tracker, check your policy wording or ask your insurer which devices and installation arrangements it accepts. And keep the installation or VESA certificate as proof of compliance.
South African vehicle tracker comparison: Pricing & insurance suitability
| Tracker brand | Indicative monthly price | Typical offering | Best for |
| Cartrack | R149 – R260 | GPS tracking, recovery and telematics options. | High-theft-risk models and cash-back telematics programmes. |
| Tracker | From R139 | Stolen-vehicle recovery (SVR), tracking and various safety services. | Everyday suburban drivers looking for balanced coverage. |
| Netstar | R89 – R199 | SVR, jamming detection, tracking and telematics depending on package. | Vehicles parked in high-risk areas or signal-jamming hotspots. |
| Beame | R99 | Wireless SVR. | Entry-level cars needing low-cost SVR. |
The catch: Telematics and the privacy trade-off
Modern telematics trackers can continuously log driving behaviour, including speeding, braking severity and trip patterns.
Before opting into a behavioural discount programme, these are the factors you should be taking into account.
Constant monitoring: You are giving up personal information and real-time driving data.
Data privacy: Does the provider adhere to South African POPIA regulations? Who sees your location history?
Punitive scoring: Adherence results in high scores, but bad driving can trigger lost discounts or higher excess fees. This limits the system’s appeal to owners of high-performance vehicles. Incidentally, even if the latter type is driven in suitably safe environments such as racetracks, standard comprehensive insurance excludes track day damage.
Does having a tracker lower your excess if your vehicle is stolen?
Not quite.
If a stolen car is not recovered, many South African insurers apply a hefty excess plus an additional one for hijacking and theft. Depending on the insurer and policy wording, having an approved and active tracker may result in a theft or hijacking excess being reduced or waived.
The greater benefit of a correctly fitted and working tracker lies in how GPS logs assist with speedier recovery and related evidence during investigations, leading to quicker asset recovery and overall case resolution.
To ensure this remains the case, keep your tracker subscription active and the device battery healthy. Any deviation from its basic operation could see excess waivers being revoked and theft claims repudiated.
The four key elements that should be in place:
- An approved tracking device and compliant installation.
- Installation certificate submitted to the insurer.
- Knowledge of your policy schedule: is your tracker a voluntary discount feature or a mandatory requirement?
- An active subscription. Up-to-date payments, with no bounced debit orders.
A tracking device can help reduce the risk of vehicle theft and may qualify you for a lower insurance premium. But not every insurer offers a discount; the saving varies from one policy to another; and on some high-risk vehicles, a tracker may be a requirement for insurance cover rather than an optional way to save money.
Ultimately, treating a car tracker purely as a grudge compliance purchase misses the bigger picture. When chosen wisely and kept active, it shifts from an annoying monthly debit order into an integral hedge designed to protect your asset, unlocking legitimate premium savings, and providing peace of mind when the worst happens.
Read more:
Car theft: What to do when your vehicle is stolen
