The potential savings on your Comprehensive coverage costs, thanks to anti-theft devices installed in your vehicle, can vary between 5% to 25%, depending on the insurer and state. Numerous car insurance providers extend this discount, often listing LoJack as an eligible anti-theft device. Furthermore, certain state regulations may mandate insurers to provide these savings to qualifying policyholders. But this discount typically applies solely to the Comprehensive coverage and not to the entirety of your policy coverage. Consequently, the total savings you might realize in the end could be somewhat limited.
After getting tempted by the discounts promoted by insurance companies, individuals might find themselves somewhat disappointed with the actual dollar savings they receive. For example, you’re paying $2,000 for your full coverage auto insurance, and you see an enticing 20% discount advertised for anti-theft devices. You might expect a $400 discount, but in reality, you could end up with just a $40 reduction. This discrepancy arises from the way the discount is applied, specifically to the portion of your coverage relevant to auto theft and the allocation designated for LoJack. Often, policyholders won’t receive the full advertised discount for LoJack alone, and they may need an alarm system as well.
This underscores the importance of motorists focusing on the final price rather than fixating on high-percentage discounts in advertisements. To truly gauge how competitive a quote or renewal terms are, it’s vital for individuals to shop around and compare them to other quotes they obtain.
It is still a discount, especially if you already have LoJack installed on your vehicle anyway. To qualify for it, you must carry Comprehensive coverage, which not only protects against auto theft but also covers various other risks such as fire and acts of nature. If you hold a liability-only policy, your own car’s damage or theft isn’t covered, making the presence of a LoJack system irrelevant.
Cars with LoJack have a much higher chance of recovery, especially with the latest features alerting owners via the app when the vehicle is driven. That is why vehicle insurance companies offer lower rates when the vehicle insured has LoJack, which uses GPS technology so that law enforcement officers can track the vehicle and recover.
According to the National Highway Traffic Safety Administration (NHTSA), approximately 42% of stolen cars in the US are never found. However, as per information from the LoJack website, they boast an impressive 98% recovery rate, which is undeniably encouraging. In cases where a vehicle isn’t retrieved, insurance companies would be obligated to compensate the policyholder for its actual cash value. So, they save a lot of money if the device helps police recover the car in time before it is damaged by a joyrider or stripped for parts.
Many major auto insurance companies like State Farm, GEICO and Farmers offer varying levels of discounts and the savings may be more in some states and in certain zip codes where car theft is a major issue. Also, you may see its effects on your premium more when your car has high value and is one of the vehicles often targeted by thieves.
LoJack is a vehicle tracking system popular among fleet owners and dealerships and private automobiles uses it as well. A discretely installed tracking device transmits signals that can be tracked by police enabling them to find it. It has a one-time installation fee between $700 – $1,000 and no subscription fees. But some cars may come with LoJack installed by the dealer or the previous owner may have done it. They charge $99 for transferring LoJack from the previous owner to the new owner of the vehicle.
If your sole motivation for installing LoJack is to reduce car insurance costs, the immediate premium savings might not impress you. However, it’s important to consider the long-term benefits. Vehicle recovery through such a device can prevent you from having to file an auto insurance claim, which can result in substantial savings. Firstly, making a claim would typically require you to pay deductibles, and your insurance rates could be affected for at least three years as a result of that claim. Additionally, people have a deep attachment to their vehicles and prioritize their protection.