Does Having LoJack Lower Your Auto Insurance Rates?

Last Updated on May 14, 2021

LoJack is a vehicle recovery system that can help locate a stolen vehicle.

LoJack can reduce your auto insurance premiums. On average, vehicles with LoJack have 8% to 12% lower auto insurance premiums than vehicles without LoJack.

How does LoJack impact auto insurance premiums? How much can you save with LoJack? Find out everything you need to know about LoJack and how it affects auto insurance today.

Yes, Most Insurers Offer Discounts on Vehicles with LoJack

lojack insurance ratesLoJack can reduce car insurance premiums. Generally, vehicles with LoJack pay 5% to 15% lower car insurance premiums.

Insurance companies across the United States now offer discounts to vehicles with LoJack.

LoJack increases the chances of recovering a vehicle after a theft, which means it can lower costs for insurers. In exchange for this lower risk, most insurers offer discounts on vehicles with LoJack recovery systems.

In fact, most insurers offer discounts for any type of anti-theft system. Some vehicles have passive anti-theft systems that deter thieves from targeting a vehicle in the first place – like a flashing light on the dashboard and a car alarm. Other vehicles have active anti-theft systems – like remote shutdown systems. Whatever type of anti-theft device your vehicle has, you could pay lower car insurance premiums.

Most major insurance companies in the United States offer discounts for anti-theft systems, including specific LoJack auto insurance discounts.

How Car Insurance Covers Car Theft

Many drivers are surprised to discover that their car insurance policy does not cover car theft. If you have minimum liability coverage on your vehicle and nothing else, then your insurance may not cover vehicle theft.

Insurance covers theft through comprehensive coverage. Comprehensive coverage covers vandalism, theft, environmental damage, fire damage, break-ins, and other costs. You pay your deductible, and insurance compensates you for the cost of repairing or replacing your vehicle.

When a vehicle is stolen, your insurer must compensate you for the full value of your vehicle, minus your deductible.

However, if your vehicle is recovered, then the insurer simply needs to repair the damage to the vehicle – if any. Instead of paying $30,000 to replace the full value of your vehicle, your insurer only needs to pay, say, $3,000 in repair costs.

That’s why insurers reward drivers with anti-theft systems. Anti-theft systems reduce the chance of a vehicle being stolen or increase the chances of recovery. That means lower costs for your insurance company and less risk. Insurers pass these savings on to you in the form of an insurance discount.

How LoJack Works

LoJack is not technically an anti-theft system. Instead, it’s a vehicle recovery system. It increases the chances of recovering a vehicle after it has been lost or stolen.

LoJack is an aftermarket device created by a publicly traded company. You pay a one-time fee to install the device, and there are no monthly fees.

The goal of LoJack is to help police locate and recover a stolen vehicle. Some people install LoJack on commercial vehicles to protect their fleet. Others install LoJack on their personal vehicle. Some auto dealers use LoJack to track vehicles.

The big advantage of LoJack is that it’s the only stolen vehicle recovery system directly integrated with law enforcement.

According to LoJack.com, the vehicle recovery system has a 90% recovery rate on cars, trucks, and SUVs. Nearly 700,000 vehicles are stolen every year in the United States, and LoJack can increase the chances of recovering those vehicles after they have been stolen.

LoJack also offers a mobile app called SureDrive, which integrates with your vehicle tracking system for additional security. You can add boundary alerts and crash detection through SureDrive, for example, getting a notification if your vehicle has left a specific boundary.

Benefits of Recovering a Vehicle

When a stolen vehicle is recovered, the insurer no longer needs to compensate drivers for the full value of the vehicle. Instead, the driver takes ownership of the stolen vehicle, and insurance does not need to pay (unless the vehicle has been damaged and declared a total loss).

Getting reimbursed by your insurance company can be helpful, but recovering the car is often the best outcome.

After your vehicle is stolen, it takes time for your insurer to compensate you for the value of the vehicle. If your vehicle was being financed, then you may not be able to pay off the loan on your vehicle because the value of your vehicle was less than the loan.

With LoJack, you can avoid these issues and increase your chances of recovering a stolen vehicle. Your insurer will still cover any damage to your vehicle that occurred as a result of the theft – like a broken windshield. However, your insurer will not compensate you for the full value of the vehicle.

How Insurance Covers Vandalism to a Stolen Vehicle

When you recover a stolen vehicle, there may or may not be visible damage. Car thieves rarely return a vehicle in pristine condition, and insurance claims can be messy for stolen vehicles.

Some car thieves also remove parts from the car to sell them. Or, the thief may have damaged parts of your vehicle while driving.

As long as you have comprehensive coverage, insurance covers all of this damage. Comprehensive coverage specifically covers vandalism. Any damage that occurred during the theft should be covered by your insurance policy’s comprehensive coverage.

Comprehensive Coverage is Optional

Comprehensive coverage is optional in every state. You are not required to carry comprehensive coverage.

If you don’t have comprehensive coverage, then you could be left without compensation after your vehicle is stolen. If the police never recover your vehicle, then you receive no compensation whatsoever. You did not have comprehensive coverage, so you are not entitled to any compensation.

Many drivers drop comprehensive coverage on older vehicles, as it may not be necessary. However, it’s generally a good idea to carry comprehensive coverage on newer vehicles.

How to Qualify for the LoJack Insurance Discount

Contact your insurer to ask about LoJack insurance discounts. Most insurers bundle LoJack discounts under anti-theft discounts, although some insurers offer specific LoJack discounts.

Some insurers require you to submit the LoJack proof of installation form to qualify. This is an easy step to take.

Not all insurers offer a LoJack discount. If your insurer does not offer a LoJack discount, then consider comparing quotes online. You might find an insurer with cheaper rates offering a LoJack discount in your area.

Final Word on LoJack and Auto Insurance Discounts

LoJack is a vehicle recovery system that helps recover 90% of stolen vehicles. It saves insurers money, which is why insurers offer discounts on vehicles with LoJack installed.

Contact your insurer to ask about a LoJack auto insurance discount. Most insurers drop rates by 5% to 15% in exchange for installing LoJack or other anti-theft devices.

James Shaffer
James Shaffer James Shaffer is a writer for InsurancePanda.com and a well-seasoned auto insurance industry veteran. He has a deep knowledge of insurance rules and regulations and is passionate about helping drivers save money on auto insurance. He is responsible for researching and writing about anything auto insurance-related. He holds a bachelor's degree from Bentley University and his work has been quoted by NBC News, CNN, and The Washington Post.
Back to Top