The one thing you’re not – and should be – doing with your vehicle tracker

Vehicle tracking devices are essential for recovering stolen vehicles, but did you know they can also affect your insurance cover? Many insurance policies require a tracking device to help reduce risk, but they must be correctly installed and in working order to ensure your cover is valid. Here’s what you need to know.

Tracking devices help recover your vehicle if it’s stolen or hijacked. Yet these small gadgets are more than a theft deterrent; they can also have a big impact on your vehicle’s insurance cover.

According to the South African police, 86 vehicles were stolen per day between January and March 2025. Discovery Insure’s claims data shows that while overall vehicle theft and hijacking have declined over the past two years, vehicle-related crime still tends to rise toward year-end. In November and December, incidents typically increase by around 10% compared to the rest of the year. This makes tracking devices a critical line of defense against theft year-round, and especially during the festive season.”

“Having a functioning tracking device in your vehicle improves the chances of it being recovered, which lowers your risk profile as a driver and lowers the expected cost of claims, which can make your premium more affordable,” says Precious Nduli, Chief Operating Officer of Discovery Insure. “Without a tracking device, the risk might be too high for insurers to offer cover at all, which is why many insurers make it a condition for cover, especially for high-value or high-risk vehicles.”

A critical line of defence against theft

Tracking devices use different technologies to track and recover vehicles, including GPS, real-time location monitoring and geo-fencing alerts (which alert owners when a vehicle leaves a designated area). Their installation also takes different forms, ranging from traditional standalone devices hidden deep within your vehicle to advanced wireless setups with safety features, such as impact alerts and smartphone app-linked panic buttons.

“There are many different trackers available in the market. If your vehicle is stolen, the device can be pinged through a network of nearby smartphones to triangulate its position, which is then relayed to emergency responders in real time. It can even alert you if your car moves while your paired phone isn’t inside, giving you an early warning of a possible theft. We’ve found that the chance of recovering a vehicle using this technology is more than 50% higher than with a standalone tracker.”

How tracking devices affect cover, premiums, and even how you drive

If you don’t install the device through an approved provider within a specific timeframe (usually five days from the start of the cover), your vehicle may not be covered for theft or hijacking. This condition often applies to high-value vehicles, such as luxury cars and SUVs, those with a high theft risk (based on the brand or model, or where they are regularly used or parked), and commercial or fleet vehicles. Sometimes, an insurer may even require that more than one tracker be installed in a vehicle if it’s deemed particularly high-risk.

“If your car is stolen, the tracking device is essential for recovery. Without it, especially if your insurer has made it a prerequisite, your cover could be limited to basic third-party insurance or future claims rejected,” cautions Nduli.

She also points out that tracking devices come with features that benefit the driver as well. “Some devices that use telematics offer additional safety features, such as an immediate emergency response trigger after a severe impact is detected, as well as help you earn rewards or fuel cash back, based on driving behaviour.”

Your tracking device isn’t a ‘set it and forget it’

By design, tracking devices typically last between 18 months and two years before they need to be replaced. They can also deplete sooner if the driving profile is more aggressive, if the installation is poor, if there are ad-hoc electronic failures, or if the device is damaged.

“Contact your insurance provider to understand how to test if your device is not working. Some insurers will also notify you if they detect that your device is not working,” adds Nduli. “If you have a third-party tracker, make sure that your subscriptions are up to date. If you detect an issue, contact your insurer or tracking device provider immediately, as any delay can impact your cover.”

If your device isn’t working or active, your cover for theft or hijacking may be invalid and your claim rejected – even if your vehicle was hijacked or stolen. This means you could be left without vehicle cover when you need it most.