On Star insurance discount

[Manfred]

In re-insuring my truck, I noted that special discounts are offered by Mercury for Lo-Jack or Tele-Trac.
I have the On Star setup and questioned why this does not qualify for the same discount. I understand that this system tracks the vehicle location and if requested open locked doors, diagnose truck problems and disable a stolen vehicle, etc.
After several phone calls with the agent who could not give me a good reason why this system doesn't qualify, I spoke directly with the Insurance company. They told me the reason why this does not qualify for the discount is, that the vehicle can not be tracked when in an enclosed area.
Can anybody tell me if this is true and if/why the other systems can do this?

[DieselDixon]

More then likely On Star is using GPS coordinates to locate the vehicle and GPS is only good when you have line of sight. Lojack I believe uses radio frequency to transmit a signal in which the police have a receiver that picks up the signal, as they get closer the signal gets stronger. It's a pretty cool system, I was watching "COPS" one night and they had the receiver and were tracking a construction generator, which was stolen, they drove right up to a residential garage door and found it inside.

[mdrag]

Manfred,

I checked OnStar's operation after installing my 12 CD changer - while parked inside an insulated metal building (the walls and roof are metal). They were able to locate the vehicle without any problems :eek: I've done this two or three times without a problem.

OnStar tracking does not work when the ignition is turned OFF - at least in my '01. Maybe that is the reason they chose to exclude OnStar from their discounts.

Don't forget that the business plan of an insurance company is to COLLECT preminums and NOT pay claims. It would make the most business sense to NOT allow a discount for a tracking option that is very popular and widespread - for WHATEVER reason to save the company $$.

[DmaxMaverick]

My insurance (Farmers) is about $50 less a year because of Onstar. All companies that offer breaks for Lowjack should offer the same for Onstar. My agent asked me if mine was equipped with a theft tracking device, not including dragging the hounds from under the porch. I said yes. The type wasn't discussed until later. Perhaps it is just the terminology that needs to be changed. Most people I have talked to that have heard of Onstar don't even know about the tracking feature.

The system works with the ignition on or off. It can be activated by Onstar operators by "calling" the vehicle. It only needs to be powered, meaning batteries connected. If this were not the case, then an airbag deployment would do nothing (in regards to Onstar) in many cases. The ignition does not have to be on for the airbags to work. I have seen collisions where the ignition switch was rotated to "off" from the force of impact, and the airbags were deployed on a secondary impact. Most involved ignition keys on key rings that were very heavy or had a bunch of keys on them.

Either way, insist that they give you the discount, or that they offer proof that Onstar is inferior to the others. Even just the lockout feature will save them difference with just one call to a locksmith for that embarrassing moment.

[TXDMAX]

I've been on a few demo drives w/ Lo-Jack and the system is neat. I'm surprised MDRAG's onstar worked while in a building. We have are vehicles parked under tents for delivery and most of the time on-star can't be reached for activation. I've tried to use mine twice and didn't work because the satellite signal couldn't reach the truck (parked next to a two story house). I believe ins cos. don't give discounts for on-star is 1) satellite based signal sometimes can't reach the vehicle and 2) it is can be easily disabled.
Since lo-jack uses radio waves the only way your vehicle won't be foud is if it is burned or underwater. It is also hidden in the vehicle. they use 40 different spots. Cops have told me that the pros will now steal the car and park it at a mall or neighborhood. Then come back and get it a day later to see if it has a retrieval system in it. Hope this answers any questions.

[Manfred]

Thanks to all of you for your comments and experiences. I now have a better understanding of the passive On Star system and it's shortcomings of theft protection.
One other feature which I thought On Star has, namely the ability to disable the engine from running if the vehicle is reported as stolen was confirmed to me by On Star as wrong. I think the system has room for improvement I wouldn't mind paying for a reasonable surcharge.