Motorists want complete peace of mind their car will still be where they parked it after shopping at the mall or visiting a friend. Businesses in the freight industry need peace of mind the hundreds of wheels traversing the length and breadth of the country every day are safe every kilometre of the journey.
That’s why reliable tracking devices have become a must-have for South African motorists, says Wahl Bartmann, 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’s your family car or a fleet of trucks, knowing you have eyes on your investment at all times not only gives you peace of mind but can also save you a lot of money in future,” he explains.
“This is because installing a vehicle recovery device can reduce insurance premiums quite drastically, saving you money in the long run.
“One of the key questions insurance companies ask during their risk profiling process is whether you have a tracking device installed, given that this increases your vehicle’s security. In South Africa, having a tracker is also often an insurance requirement for higher-value vehicles.”
Bartmann reiterates that since tracking systems are not standard-issue on vehicles, it is important to think about what happens to the system when your vehicle has been in an accident or if you decide to sell the vehicle.
Here’s what consumers need to know:
- When a vehicle is sold – transfer of ownership
There are a number of options available, depending on whether you are still in contract with your tracking company or whether you are on a month-to-month contract.
If you are still in contract:
Try to convince the buyer of your vehicle to take over your tracking service contract. This will require your tracking company to perform a change of ownership should the purchaser wish to take over the contract.
Should the buyer decline to take over your obligations, you remain liable for the monthly subscriptions until the termination of the contract. However, you can ask that the contract be terminated and the company will usually allow this subject to a cancellation fee (which should be aligned with the provisions of the Consumer Protection Act). The Consumer Protection Act allows the tracking service provider to recover their reasonable costs if a customer cancels their contract within term.
- When a vehicle is in an accident
If you are still in contract:
If your vehicle is repairable and once you have taken delivery after the repairs have been done, you should request your tracking company to either test the device or to perform a quality inspection on the device to ensure it is performing optimally. This is particularly important for insurance purposes.
It is, therefore, important to ask 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 compensate you for the loss of the tracking device, which might cover the cancellation fee with the tracking company.
- Removing the device (when vehicle is sold or scrapped after a crash) and deactivation of services (when selling or scrapping the vehicle)
If your vehicle is not repairable and your insurer has decided to write it off, you will have to request the tracking company to cancel the contract. Once again, the tracking company will cancel your contract subject to a cancellation fee, which should be aligned with the provisions of the Consumer Protection Act.
Bartmann says that thanks to the technology available today, tracking devices are highly traceable with an encouraging recovery rate, which could keep your family safe in a hijacking or kidnapping situation.
“Tracking devices today offer highly sophisticated protection at an affordable rate, which make them definitely worth investing in.”
