Why you will keep paying for your tracker after wrecking your car

The requirement to continue paying for your tracker after your car has been wrecked could be in your contract – as it was in the case of a MyBroadband reader.

The hardware installed by tracker providers in vehicles is usually acquired on a contract and paid for on a monthly basis by a customer, and like all contracts, these can be subject to termination fees if cancelled early.

This is similar to how a cellphone contract from a mobile network operator works.

Unfortunately, this can result in the requirement to continue paying for your tracker even if your car has been stolen or written off.

Writing off the vehicle

The MyBroadband reader in question was a CTrack customer who signed a contract for a tracker device to be fitted to their vehicle.

The customer’s vehicle was written off in the accident, and a few months later they noticed they were still being charged for their tracking device on a monthly basis.

Upon calling CTrack, the customer was told that they had signed a two-year contract with the company and would have to continue paying each month despite the vehicle being written off.

Alternatively, the customer could pay a termination fee to cancel the contract, which would vary depending on various circumstances – including the time remaining on the contract.

Following questions from MyBroadband, CTrack said that each customer signs a specific contract with terms and conditions, applicable to an individual or a business.

“Our normal period for contracts are 36 months, including the selected services by the client, at installation date,” CTrack said.

“Early terminations are subject to cancellation fees, written in the ‘Ts and Cs’ or via voice-logged contracts in some cases.”

Insurance is important

The requirement to continue paying the contract in this case was due to the tracking unit not being insured. This insurance is not covered by CTrack and is the customer’s responsibility.

“The standard version for both our contracts states the tracking unit must be insured by the client, therefore allowing the client to replace the tracking unit via an insurance claim with the client’s insurance company,” CTrack said.

“When the unit is replaced by the insurance company, we continue services for the remainder of the initial period after the client purchases a new vehicle.”

CTrack said that it can usually allow one or two months of payment to pass while the client is looking for a new vehicle.

“In general, the condition of the vehicle and our contract is a separate issue,” CTrack said.

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Why you will keep paying for your tracker after wrecking your car