ARE VEHICLE tracking and recovery systems all they are cracked up to be? No, appears to be the answer from insurance companies, who have been less than enthusiastic about the rate of success claimed by some companies.
Tracking systems were launched several years ago as a means of electronically tracing stolen vehicles. Companies operating these systems routinely claim a success rate of up to 95%.
But estimates put the number of vehicles using these systems at less than one per cent. The reason is that few insurance companies offer discounts or offer to subsidise the high cost of installation.
The reason given is that insurance companies do not trust the high recovery rates claimed by some companies. Industry sources say they could be as low as 60%. While this would still be worth a reduction in premiums to insurers, it would have to be based on independently audited statistics to make an actuarial evaluation possible.
Another problem with vehicle tracking units is that not all of them function beyond the major metropolitan areas. Nor do all of them provide instant backup in the case of an emergency.
To win the faith of insurers and customers tracking companies must be able to provide trustworthy statistics, say insurance insiders. They must also be able to provide after-sales service such as regular testing of units. Most do not provide a countrywide network of service agents.
