Answer: A GPS-enabled device may retain location information, but the features visible to the customer vary.
Do not assume it is a theft-tracking service
A policy can collect location for insurance scoring without promising live vehicle recovery. If you specifically want a tracker that helps find a stolen car, check that feature separately rather than inferring it from the presence of GPS.
GPS data may reveal the last journey end point
If the telematics system records location, the provider can often know where a journey finished. Whether that information is displayed to you in the customer app is a separate matter.
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