By June 27, 2007 1 Comments Read More →

Car insurance and navigation systems

Reader question:

I just bought a navigation system for my car. Will this make my car insurance rates go up?


Up? Surely you mean down!

Car insurance companies often raise premiums when nifty devices that cost a lot and aren’t immediately necessary are added to cars. This means that if you get a new sound system or some expensive rims, and you want those covered, you could see a hike in your rates. Some companies might even cancel your policy if your car ends up with too many gadgets for it to cover with pleasure. A navigation system may seem to fall into this category. After all, it’s an expensive device that might be coveted by thieves, and it can be seen as not being necessary. Really, how necessary is it when there are options such as key maps, google maps, and getting directions from gas station attendants? But for the chronically lost, or for anyone who likes to know the shortest way to anywhere, they can be necessary or helpful.

And guess what? The aren’t going to get your car insurance rates raised, either. Things like navigation systems are additions that a car insurance company needs to know about but won’t necessarily have a negative impact on your rates.

As a matter of fact, many car insurance companies offer discounts for cars equipped with special navigation systems like OnStar. It’s an even bigger plus if you have a GPS system that will make it possible to locate the car if it is stolen–companies will offer even bigger discounts for those. So if you’re thinking about getting a navigation system, don’t worry about it. It’s a luxury that could help you in more than one way.


Fashun Guadarrama.

Posted in: Auto Insurance

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  • Katherine

    I love your blog – very informative and helpful. Thanks!