Installing a GPS tracker can indeed help reduce your bike insurance premium, but only if it is an ARAI-approved or insurer-recognised device. Insurers view GPS-equipped bikes as lower theft risks, often offering anti-theft discounts or better renewal rates. Besides lowering premiums, GPS trackers improve theft recovery chances and make claim settlements faster and smoother, making them a worthwhile investment for riders.
In today’s world, where two wheelers are a vital part of daily life, protecting them with proper insurance is just as important as maintaining them. Many riders now look for ways to make their bikes safer and insurance more affordable, and one smart solution is installing a GPS tracker. A GPS device not only helps you locate your bike instantly if it’s stolen, but also builds trust with insurers by showing that the risk of theft is lower.
As a result, some two wheeler insurance companies may offer reduced premiums for bikes equipped with these systems. This article explores how GPS trackers work, how they can influence insurance costs, what to consider before installation, their price range, and answers to common questions riders often ask.
What Is a GPS Tracker for Bikes?
A GPS tracker for bikes is a compact electronic device that uses Global Positioning System satellites to determine the real-time location of a two-wheeler and transmits that information through a cellular network to a connected mobile app or monitoring platform. It enables owners to track and manage their bikes remotely with ease.
These devices offer useful features such as live tracking, geo-fencing to set virtual boundaries, speed alerts when the bike exceeds a limit, tamper alerts if someone tries to remove or damage the tracker, and an immobiliser function to remotely disable the engine in case of theft. In urban areas of India, where two-wheeler theft is a common concern, GPS trackers provide an added layer of security by helping locate stolen bikes quickly and offering peace of mind through real-time monitoring.
How GPS Trackers Reduce Risk and Lower Bike Insurance Premiums?
From an insurer’s perspective, GPS trackers significantly reduce the risk associated with bike insurance by lowering the chances of theft and enabling faster vehicle recovery. With real-time location tracking, insurers face fewer total-loss claims since stolen bikes can often be traced and retrieved quickly. This reduced risk profile allows insurance companies to offer lower premiums to policyholders who install approved tracking devices.
For bike owners, having a GPS tracker not only makes them eligible for anti-theft discounts but also helps maintain their No Claim Bonus, as the likelihood of filing a theft-related claim decreases. Additionally, in the event of an incident, the traceability provided by a GPS tracker ensures faster and smoother claim settlement. These benefits, however, usually apply to ARAI-approved or insurer-recognised GPS trackers, which meet safety and reliability standards accepted by insurance providers.
Checklist and Common Mistakes When Installing a GPS Tracker for Insurance
Installing a GPS tracker in your bike is an excellent way to enhance security and potentially lower your insurance premium, but it must be done correctly to ensure both functionality and eligibility for insurer benefits. Before installation, it is important to follow a proper checklist and be aware of common mistakes that can reduce the tracker’s effectiveness or lead to missed insurance discounts.
1. Checklist before the installation of a GPS in a Bike
Choose an ARAI-approved or insurer-recognised GPS tracker to ensure compatibility with insurance requirements and reliability in performance. These are some of the ARAI-approved GPS trackers: NAVI140, TM77, VTS 2.0 A, NIRBAYAAN, iCompass, PSDN, LOCATE140B, OD-TRACK, RDM-4G, Rostrack-10, DARSH, RAKSHAK140-4g.
Ensure professional installation and retain the invoice, serial number, and installation details for future reference or verification.
Inform your insurer once the tracker is installed and request an update to your policy records to reflect the added security feature.
Confirm that the tracker’s SIM card or subscription service is active and functioning to enable accurate live tracking and notifications.
2. Common mistakes to avoid while installing a GPS in a Bike
Installing non-approved or uncertified devices while expecting an insurance discount, as most insurers only accept ARAI-approved models.
Forgetting to inform the insurer about the installation or failing to renew the tracker’s data subscription can render it inactive.
Placing the device incorrectly, such as in areas with weak signal reception or exposure to water, makes the tracker ineffective.
Assuming that installing a tracker alone will automatically reduce the premium without proper insurer verification or approval.
Cost vs Benefit: Is Installing a GPS Tracker Worth It?
Installing a GPS tracker in your bike may seem like an additional expense initially, but when viewed long term, it provides both financial and practical benefits that justify the investment.
1. Cost Factors
The total cost includes the price of the device, professional installation, and an active data or SIM subscription for live tracking.
Depending on the model, features, and service plan, expenses generally range from a few hundred to a few thousand rupees per year.
2. Potential Insurance Savings
Many insurers offer anti-theft discounts on premiums for bikes fitted with ARAI-approved or insurer-recognised GPS trackers.
By lowering the risk of theft and improving recovery chances, GPS trackers help policyholders maintain their No Claim Bonus, leading to reduced renewal premiums.
3. Additional Benefits
Enhanced theft protection through real-time tracking provides greater peace of mind.
Recorded tracking data can act as reliable evidence in case of theft or insurance claims.
Long-term financial savings build up across multiple policy renewals due to fewer claims and continued discount eligibility.
Maintenance and Best Practices for a GPS Tracker on a Bike
To ensure your GPS tracker continues to function effectively and provide ongoing insurance benefits, regular maintenance and attention are essential.
Check the tracker’s connectivity and signal strength periodically to confirm it is transmitting accurate location data.
Inspect the device’s battery or power connection regularly to ensure uninterrupted operation.
Keep the firmware or mobile app updated to benefit from improved performance and security patches.
Renew the data or SIM subscription plan on time to maintain real-time tracking and alerts.
Retain the purchase invoice, installation receipt, and device serial number as proof for insurer verification when needed.
Summary
Installing a GPS tracker in a bike enhances security and can help reduce insurance premiums by lowering theft risk and improving recovery chances. Insurers often view GPS-equipped bikes as safer, making owners eligible for anti-theft discounts and helping them retain their No Claim Bonus. These benefits, however, usually apply only to ARAI-approved or insurer-recognised trackers.
While installation and subscription involve some cost, the long-term savings, peace of mind, and easier claim settlements make it a valuable investment. Regular maintenance, including checking connectivity and renewing subscriptions, ensures continuous functionality and insurance benefits. Riders should always confirm discount eligibility with their insurer before installation.
Read More About Bike Insurance Premium:
Frequently Asked Questions
Does GPS lower bike insurance?
Yes, some insurers may offer a discount on your bike insurance premium if you install a certified GPS tracker. It shows that your vehicle is more secure and less likely to be stolen.
Are bike GPS trackers worth the cost?
Yes, they are worth it. A GPS tracker helps you monitor your bike’s location in real time and increases the chances of recovery if it’s stolen. The security and peace of mind it provides often outweigh the cost.
How much discount can I get for using a GPS tracker on my bike?
The discount varies depending on your insurer and the type of GPS device. Some insurance companies may offer a small percentage off your premium for approved trackers.
Are all GPS trackers eligible for insurance discounts?
No, only GPS trackers that meet the insurer’s security standards or are approved by them may qualify for a discount. It’s best to confirm with your insurer before purchasing a device.
What happens if my tracker stops working or my subscription expires?
If your GPS tracker becomes inactive, the insurer may withdraw the discount since the security benefit is no longer valid. Make sure to renew your subscription and keep the device active.
Can I inform my insurer mid-policy after installing a tracker?
Yes, you can. Contact your insurer with the tracker details, and they may update your policy and apply any eligible discount from the next renewal or as per their terms.
Do GPS trackers help in claim settlement or theft recovery?
Yes, they can. GPS trackers make it easier to locate your stolen bike, which helps the police and supports your insurance claim with reliable tracking data.
