Do you know how much you are paying every month for your vehicle tracking service?Chances are, if that cost is built into your insurance premium, you have no idea.As with cellphone contracts, the tracking device itself, like the phone, is not free - you pay it off as part of your subscription during what's known as the "initial period".In the case of cellphone contracts, that's two years, and it's three years in the case of vehicle tracking contracts.So, it stands to reason then, surely, that when that initial period is up, the subscription should reduce because the hardware is then paid off, and the subscriber is left to pay only for the service?Well, yes, in the case of a cellphone contract, if you resist the temptation to "upgrade" your contract after two years, to get your hands on the latest smartphone, your subscription will reduce.But when it comes to vehicle tracking contracts, it's not that simple, mainly because of a complex arrangement of discounted subscription deals with insurance companies.Last month I realised that my monthly Tracker subscription had not been reduced after 36 months when the hardware was paid off.I made a call to Tracker to query this, and without any argument, the consultant reduced my monthly subscription from R131 to R70.I mentioned this on a radio show in the context of finding ways to cut your monthly expenditure.Suhail Motala of Durban, who had been listening, realised that his three-year vehicle tracking contract with Netstar had rolled over to a month-to-month basis from November, but his subscription had remained R179.So he contacted the company, and after a bit of a runaround, he was told that from the end of this month his subscription would drop to R100 a month.He was still savouring that good news when he got another call from Netstar to say that the fee would be just R60 a month - a saving of R110 a month.What's more, he was told he would be refunded the "over-payment" since November, and last week Netstar deposited more than R900 into his account.Which got me thinking - how many others are overpaying for their tracking services, having paid off their hardware? Why are these subscriptions not automatically reduced from year four?Netstar's communications manager, Shona Minards, said the company did automatically reduce the amount to the service-only portion after three years but only "if the subscription they are paying at that time is more than the relevant monthly service-only fee in force at the time of contract expiry".I asked what percentage of clients had their monthly fees automatically reduced after three years. The response: "We cannot assist with providing these statistics."In Motala's case, Minards said, Netstar's current "recommended retail pricing" for his tracking service was currently more than R169 a month - R240, in fact - so his contract amount was not reduced in November when his three-year initial period ended.Only about R60 of his monthly fee had covered payment of his tracking device, I was told.So why was Motala's fee so drastically reduced and the "over-payments" since November refunded when he raised the issue?That was a gesture of goodwill, Minards said, and a bid to retain him as a customer. Quite a gesture!THE INSURER COMPLICATIONIf you ditch one car insurance policy for another, after shopping around for a more competitive price - an exercise you should do regularly - bear in mind that you will lose the discounted rate you got on your vehicle tracking service at the time of installation.That's what happened to me when I switched insurers.I asked Tracker the same question I asked Netstar - why aren't subscriptions automatically reduced when the initial three-year period is up, to take into account that the hardware is paid off?"Tracker's business model does not accommodate a reduction in the monthly subscription at the end of a 36-month contract period," said Tracker's communications manager Nandi Canning."In fact, the initial cost of getting a customer on board - including the cost of the hardware and installation - is recouped over a much longer period to enable Tracker to stay competitive in the market from a price perspective."In other words, long-standing customers are subsidising the special deals offered to new ones. So, why was my subscription substantially reduced when I made that call?The R70 monthly subscription I was offered is usually only available to my current insurer's policyholders when they are new Tracker customers, I was told.But I was given it as a goodwill gesture. And I won't be getting a refund.WHAT TO DO:Insist on being sent a monthly invoice by your vehicle tracking company, whether your subscription is part of your insurance premium or standalone.Renegotiate your subscription if you switch vehicle insurance companies and especially when your initial three-year period is up, as your hardware is paid off, and you are no longer locked into a lengthy contract, giving you negotiating power.When buying a new or used car, ask both your broker or direct insurer as well as the motor dealership what vehicle tracking device deals they can offer you.CONTACT WENDY:E-mail: consumer@knowler.co.zaTwitter: @wendyknowler..