A tracking condition on your insurance policy: what it means and what to check

A tracking condition is a term in your insurance policy, or your loan, that requires an approved tracker to be fitted and kept working. The policy wording sets out which tracker and what happens if you do not comply. The Policyholder Protection Rules require insurers to disclose significant exclusions and limitations clearly.

What is a tracking condition?

A vehicle tracker is two things bought together: a small device fitted in the vehicle, and a subscription to a control room that watches the signal. If the vehicle is moved without the key, or the device raises an alarm, the control room tries to reach you and, if the vehicle is stolen, passes its location on to a recovery team and usually the police.

A tracking condition is a rule in a contract about that device. It might say that a vehicle of a given kind must have an approved tracker fitted before cover starts, or that the tracker must remain active for as long as the policy runs. It might also say what happens if it does not: for example, that a theft claim will be treated differently.

The exact wording is what counts, and it differs between policies. This guide explains where to look and what to ask. It cannot tell you what your policy says.

Where does the condition come from?

Usually from one of two places.

• The insurer. An insurer may attach a tracking requirement to certain vehicles, for example those that are more often stolen or more costly to replace. It appears in the quotation, the policy schedule or the policy wording.
• The finance provider or dealer. If the vehicle is financed, the lender may make a tracker a condition of the loan.

A tracker is not insurance. It does not pay you if the vehicle is stolen and does not replace your cover. What it does is raise the chance that a stolen vehicle is found.

When someone tells you that you need a tracker, ask three things: who requires it, which tracker types they accept, and whether the requirement is written down.

What do the Rules make an insurer disclose?

The Policyholder Protection Rules (Short-term Insurance), 2017, speak about exclusions and limitations. They do not mention trackers by name, but a tracking condition that limits when the insurer pays is a limitation of the kind they cover. Four rules matter.

Before the policy begins. Rule 11.4.2(g) says the information the insurer must give you includes "concise details of any significant exclusions or limitations", and that this must be provided prominently, as set out in Rule 10.15. So a condition that could decide whether a theft claim is paid should not be buried.

After it begins. Rule 11.5.1(d) says the insurer must give you, in writing, comprehensive details of all exclusions or limitations, including prominent disclosure of any significant ones. That must reach you at the earliest reasonable opportunity and no later than 30 days after the policy begins.

When something changes. Rule 11.6.1 says the insurer must disclose contractual changes to you in writing during the policy.

When you claim. The insurer may not deny a claim "without performing a reasonable investigation" (Rule 17.11.1(b)). If it refuses, it must tell you the reasons in plain language and in enough detail for you to dispute them, and give you not less than 90 days to make representations (Rule 17.6.3).

These Rules give you something to point to. They do not say what a particular tracking condition must be, and they do not decide whether a given condition is fair.

What should I look for in the policy?

Find the policy schedule and wording, then look for words such as "tracking device", "tracker", "vehicle recovery", "security device" or "conditions". Note:

1. Whether a tracker is required, and for which vehicle. The condition may apply only to certain makes, models or values.
2. What type is accepted. The wording may name types, approval standards or a list of approved suppliers. If the vehicle already has a tracker, ask whether it meets the requirement.
3. When it must be fitted. Before cover starts, or within a set number of days.
4. Whether it must stay active. A tracker with a lapsed subscription may not be "active". Ask who must pay and renew.
5. What happens if it is not fitted or not working. Whether a theft claim is declined, reduced, or carries a higher excess. The wording should say.
6. What you must do if the device is removed, replaced or faulty. Tell the insurer? Within what time?
7. Whether the condition appears in the quotation. Rule 11.4.2 says the information you rely on before taking the policy should set out the key exclusions and limitations. If it was missing from the quotation, say so.

What should I ask the provider?

When the licensed provider calls you, these questions are fair to ask, and the provider is the one allowed to answer them.

• Is a tracker required for my vehicle on this policy? Where does it say so?
• Which types of tracker are accepted? Is the one I have already accepted?
• Who fits it, when, and who pays?
• What does the monitoring subscription cost and for how long does the contract run? (See our guide on your rights on a tracker contract.)
• What happens to a theft claim if the tracker fails, is jammed or the subscription lapses?
• Do I have to tell you if I change vehicles or remove the device?

Ask for the answers in writing.

What if the policy and the tracker contract conflict?

They are two separate contracts. The insurer's policy says what you must do to keep your cover. The tracker supplier's contract says what you get and for how long. The insurer's condition may require a tracker to be active at a moment when your tracker contract has ended or been cancelled. Before you cancel any tracker contract, check what your insurer or lender requires, and get its answer in writing.

What if a claim is refused because of the tracker?

Work through these steps.

1. Ask the insurer for the specific wording it relied on, and for the facts on which it based its decision.
2. Check that the notice contains the plain-language reasons, the 90-day period to respond, the internal review details and the ombud details (Rule 17.6.3).
3. Make written representations within that period. The insurer then has 45 days to answer (Rule 17.6.5).
4. If it confirms the refusal, you can take the matter to the National Financial Ombud Scheme. Its website says it offers free dispute resolution to the complainant, and that you must first lodge the complaint with your insurer.
5. You can also raise a conduct concern with the Financial Sector Conduct Authority.

Our guides on how a car insurance claim is handled and decided and on motorbike insurance complaints set out the steps in more detail.

What does Olvian do?

Olvian is a lead-referral service. You ask once, and your request goes to licensed providers who pay Olvian a fee and call you back. Olvian is not an insurer, broker, financial services provider or adviser. It does not fit trackers, set policy conditions or decide claims. Whether you need a tracker, and which one, is for your insurer or lender to state and for the provider who calls you to explain.

Sources

Checked on 31 October 2026. Olvian is not a financial services provider and this guide is information, not advice.

• Policyholder Protection Rules (Short-term Insurance), 2017, Government Notice 1433, Government Gazette 41329 of 15 December 2017: Rules 10.15, 11.4.2, 11.5.1, 11.6.1, 17.6 and 17.11.1.
• National Financial Ombud Scheme
• Financial Sector Conduct Authority