Does LoJack affect auto insurance rates?

If you’re a car owner considering installing a LoJack vehicle recovery system in your vehicle, you probably have questions about whether it will lower your insurance rates. Although most auto insurers offer reduced rates for having LoJack, the difference is nominal and applies only to comprehensive coverage.

Although many auto insurance companies offer discounts for anti-theft features ranging from factory-installed car alarms to advanced anti-theft and recovery systems, other types of insurance discounts can provide drivers with better savings. Check the anti-theft auto insurance discount for more information.

In this article, we’ll explore how LoJack can impact your insurance rates and discuss other options for lowering your car insurance rates.

What is LoJack?

LoJack is a battery-operated vehicle recovery system that can be installed on any vehicle. For example, if a car is stolen, LoJack uses a hidden radio transceiver to help police identify the vehicle’s location quickly – sometimes in as little as a day.

Although LoJack is primarily used by auto dealers and installed on fleets of commercial vehicles, it is available to all vehicle owners. When purchasing a LoJack vehicle recovery system, car owners can pick from varying levels of protection for their vehicle, ranging from essential coverage to more comprehensive protection.

How does LoJack work?

After purchasing a LoJack recovery system, a technician will install a small, hidden radio transceiver in your vehicle. Although the exact position of the transceiver varies depending on the make, model, and type of car it’s being installed on, its position will always be discreet to prevent thieves from removing it from the vehicle while stealing it.

The process for recovering a stolen vehicle using LoJack is as follows:

• If your vehicle is stolen, report the theft to law enforcement in the location where it was taken immediately.
• After filing a stolen vehicle report, call a LoJack customer service representative to notify the company of the theft.
• After filing a vehicle theft report, the theft will be recorded in a national database of stolen vehicles. Law enforcement will use computers to send a radio signal to the stolen vehicle. 
• If the vehicle is within the LoJack coverage area, the transceiver hidden in your car will be activated and alert law enforcement to its location for recovery.

According to the LoJack website, 90% of stolen cars, trucks, and SUVs equipped with LoJack are recovered – some within only a few hours of being reported stolen.

How much does LoJack installation cost?

Installing LoJack on your vehicle requires a one-time fee with no recurring monthly fees. Depending on the vehicle and coverage purchased, the cost of a LoJack system ranges from $700 to $1,200.

For basic protection on a newer vehicle, drivers can expect to pay around $720. You can expect to pay around $1,200 for complete protection, which includes an extended warranty and the ability to set up crash reports and boundaries using the SureDriver app.

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How much can drivers save by installing LoJack?

Factors that can affect car insurance rates include a driver’s location, age, gender, and driving history. While annual LoJack car insurance discounts vary by insurance provider, the average annual comprehensive auto insurance coverage cost was $160 per year. 

Based on that number, the average annual savings for LoJack is about $16 annually (roughly $1.33 per month).

Typically, insurance rate reductions associated with LoJack will apply only to your comprehensive coverage. Because of that, drivers will continue to pay the same amount for liability, collision, and other types of coverage.

Can installing LoJack lower my insurance rates?

Although most auto insurers offer reduced rates for anti-theft features or devices, including LoJack, discounts vary based on the insurance company and the driver insured. 

Vehicle owners with LoJack typically pay 5% to 10% less for insurance than those without it. Some companies offer specific LoJack insurance discounts, which could lead to more savings.

Progressive LoJack Discounts

As a major car insurance company, Progressive does not list discounts for LoJack or other anti-theft or vehicle recovery systems on its website.

State Farm LoJack Discounts

Another popular insurer, State Farm’s website lists a discount for alarms and some other approved anti-theft devices.

Why doesn’t LoJack impact the rates of other types of coverage?

Because LoJack can reduce recovery time after a vehicle is stolen, discounts associated with the system primarily affect comprehensive coverage. 

Other types of coverage, like collision, aren’t affected by LoJack because the recovery system doesn’t impact driving safety – an important factor in determining rates for other types of insurance coverage.

What are the benefits and disadvantages of LoJack?

LoJack’s primary advantage is offering a significantly better chance of recovering your vehicle if it is stolen – something that can help you avoid having to file a loss claim with your insurance company, which can affect your rates. 

In addition, because LoJack has a significant impact on the recovery of stolen vehicles, it can be a great asset for drivers living or working in high-theft areas looking for a way to protect their vehicles and avoid insurance claims.

The disadvantages of LoJack are its cost and the fact that it is not available in every state. Because of that, drivers need to assess the system’s advantages and disadvantages before installing LoJack on their vehicles.

Is LoJack worth the cost? 

Since the value of LoJack depends on your needs as a vehicle owner, weighing the benefits and disadvantages of the vehicle recovery system can help determine whether the cost makes sense. However, if that’s your goal, there are other ways to save money on car insurance.

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Other Ways Drivers Can Save on Car Insurance

Many options are available to drivers looking to lower their insurance rates. The first step you can take is to do research online to find cheap auto insurance coverage.

Other ways to save money on car insurance include:

• Comparing auto insurance policies and shopping for the best rates.
• Maintaining a clean driving record.
• Asking auto insurers about the discounts available to policyholders.

A range of auto insurance discounts is available to drivers through most insurance companies. While you can usually stack discounts, drivers should remember that having multiple anti-theft features installed on your vehicle will generally only qualify for one discount.

LoJack and Car Insurance Rates: The Bottom Line

Although installing LoJack on your vehicle can help lower your car insurance rates, the discounts are usually minimal and limited to comprehensive coverage only. 

If you’re a vehicle owner looking to reduce your monthly auto insurance payments, it can be a good idea to shop around and explore cheaper policies and other discounts with lower investment costs and more savings.

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