Does Having LoJack Lower Your Auto Insurance Rates?

Last Updated on October 15, 2026

By James Shaffer · Reviewed by Thomas Rockford, insurance industry executive and financial analyst, on October 15, 2026 · How we fact-check

LoJack is a stolen vehicle recovery system. It can lower your car insurance cost if your insurer offers an anti-theft or vehicle recovery discount—but the savings vary by company, state, and your vehicle, and each insurer decides how much, if anything, the device is worth.

Below is how LoJack discounts typically work, when theft is covered, and what to ask your insurer so you know exactly what you’ll save (if anything) before paying for installation.

1. LoJack Discounts Aren’t Guaranteed: Many insurers treat LoJack as an anti-theft or vehicle recovery feature, but eligibility and savings vary by carrier and state.
2. Theft Is Usually a Comprehensive Claim: If you don’t carry comprehensive coverage, your policy typically won’t pay to replace your stolen vehicle.
3. Recovery Often Reduces Claim Severity: A recovered vehicle may mean repair costs instead of a full payout, which is why insurers may offer a discount.
4. Confirm Requirements Before You Buy: Ask whether aftermarket systems qualify, what proof is required, and whether the discount applies only when comprehensive coverage is on the policy.

Do Insurers Offer a LoJack Discount?

Many insurers offer an anti-theft discount that can apply to vehicles with LoJack or similar recovery technology. Some carriers list this under “anti-theft,” “vehicle recovery,” or “tracking” discounts, while others only discount factory-installed theft deterrents.

A few states write a discount into law. New York requires insurers to give an appropriate reduction on comprehensive premiums for an operational homing device that works with police over a radio network allocated by the FCC. Today’s LoJack uses GPS and cellular technology, so if you live in New York, ask your insurer whether your system meets that definition.

Because discounts differ by carrier and ZIP code, treat LoJack as one potential part of your savings strategy—not a guaranteed price cut. For more ways to reduce premiums, see these top ways to save on auto insurance.

In general, insurers price theft risk into the comprehensive portion of your policy. Devices that deter theft or increase recovery odds can reduce expected claim costs, which is why anti-theft device discounts exist in the first place. That includes basic deterrents (like a car alarm) and more advanced technology (like remote shutdown systems).

When Car Insurance Covers Theft

If you only carry minimum liability coverage, your policy typically won’t pay for your own stolen vehicle. Theft coverage usually comes from comprehensive coverage.

Comprehensive coverage can pay for theft-related losses and damage that often comes with theft—such as vandalism, vehicle theft, fire damage, and certain losses from items stolen from inside your car (coverage varies—often subject to policy limits or handled under renters/homeowners).

If your vehicle is not recovered, comprehensive coverage generally pays the actual cash value (ACV) of the vehicle at the time of the theft, minus your deductible. If the vehicle is recovered, comprehensive coverage typically pays to repair theft-related damage—again, minus your deductible.

This difference is why insurers may discount theft-deterrent and recovery technology: recovering a vehicle can turn a “total payout” claim into a “repair only” claim.

How LoJack Works

LoJack is designed to help locate and recover a stolen vehicle after a theft. LoJack says its current system uses GPS and cellular technology: you report the theft to police, send LoJack the police report through its app, and LoJack’s team works to locate the vehicle. Systems bought before May 2021 are what LoJack calls Classic LoJack, which provides stolen vehicle recovery only.

LoJack also advertises a financial guarantee of up to $10,000 if your vehicle isn’t recovered within 30 days, and says the terms may vary by state. That promise comes from LoJack and is separate from your insurance, so it doesn’t replace comprehensive coverage.

The LoJack app adds everyday features such as the vehicle’s location, trip history, speed and boundary alerts, low-battery alerts, and service and recall reminders.

Why Recovering Your Vehicle Can Matter Financially

Recovering a stolen vehicle can reduce disruption and paperwork, and it may help you avoid the gap between your vehicle’s value and your loan balance. This is especially important if you’re carrying car insurance for a financed vehicle and you still owe more than your car is worth.

If the vehicle is recovered, your insurer may only owe for covered damage (and related costs covered by your policy), instead of paying the full value of the car. If the vehicle is recovered but heavily damaged, it may still be declared a total loss—so recovery is helpful, but it doesn’t guarantee a smaller claim.

Does LoJack Cover Vandalism or Parts Theft?

LoJack doesn’t replace insurance. It can help locate the vehicle, but it doesn’t pay for damage or stolen parts. If your car is recovered with damage—broken windows, steering column damage, missing parts, or interior vandalism—those losses are typically handled as a comprehensive claim (subject to your deductible and policy terms).

Comprehensive Coverage Is Optional, But Often Required by Lenders

Comprehensive coverage is optional in every state, but if you lease or finance your vehicle, your lender may require it. Without comprehensive coverage, you could receive no payout if your vehicle is stolen and not recovered.

Drivers sometimes drop collision and comprehensive coverage on older vehicles when the premium no longer makes sense relative to the car’s value. The “right” answer depends on your savings, your deductible, theft risk where you live, and whether you could replace the car without insurance help. The Insurance Information Institute suggests that if your car is worth less than 10 times the premium, the coverage may not be cost effective.

How to Qualify for a LoJack Insurance Discount

To find out if LoJack will reduce your premium, contact your insurer and ask how they categorize it (anti-theft vs. recovery vs. tracking). Then confirm what documentation they need.

• Ask for the exact discount name (anti-theft, vehicle recovery, tracking, telematics, etc.).
• Confirm eligibility requirements, including whether comprehensive coverage is required.
• Provide proof of installation (invoice, certificate, or installation form) if requested.
• Verify how the device is listed on your policy so it’s not missed at renewal.
• Compare quotes if needed, especially if your insurer doesn’t offer the discount. See other common auto insurance discounts that may stack.

Bottom Line on LoJack and Insurance

LoJack can qualify for an insurance discount with many carriers, but it’s not universal and it’s not always large. The bigger benefit is practical: improving the odds of recovery and limiting how disruptive a theft becomes.

If you’re considering LoJack mainly for savings, get the discount confirmed in writing (or at least documented in your policy notes) before you buy. If you’re considering it for security, evaluate it alongside comprehensive coverage limits, your deductible, and other theft deterrents.

My advice is to call your insurer with the LoJack quote in hand and ask what it would take off your comprehensive premium in dollars per year. If that number is small, decide on LoJack for the recovery help alone, and keep comprehensive on the car either way.

FAQs About LoJack and Car Insurance Discounts

Sources

Checked October 15, 2026

• LoJack — Stolen Vehicle Recovery System
• LoJack — Classic LoJack Warranty Products
• New York State Senate — New York Insurance Law § 2336
• Insurance Information Institute — Nine Ways to Lower Your Auto Insurance Costs