Lo Jac: Auto Insurance Rates Adjusted?

LoJack is a vehicle recovery system that helps locate a stolen vehicle. It is not technically an anti-theft system but a recovery system that increases the chances of recovering a vehicle after it has been lost or stolen. LoJack can reduce your auto insurance premiums. On average, vehicles with LoJack have 8% to 12% lower auto insurance premiums than vehicles without LoJack. Generally, vehicles with LoJack pay 5% to 15% lower car insurance premiums.

LoJack is a vehicle recovery system that can lower insurance rates by 5% to 15%

LoJack is an aftermarket device created by a publicly traded company. It is installed for a one-time fee and has no monthly charges. It is mostly used on commercial vehicles to protect fleets, but it can also be used on personal vehicles and by auto dealers to track vehicles.

LoJack increases the chances of recovering a stolen vehicle, which lowers costs for insurers. Most insurers offer discounts for vehicles with LoJack or other anti-theft systems. These discounts are offered under anti-theft discounts, but some insurers offer specific LoJack discounts.

Comprehensive coverage covers theft and vandalism to a stolen vehicle. When a vehicle is stolen, the insurer must compensate the driver for the full value of the vehicle, minus the deductible. However, if the vehicle is recovered, the insurer only needs to pay for repairs, which lowers costs. That is why insurers reward drivers with anti-theft systems like LoJack.

Insurance companies offer discounts for anti-theft systems

Insurance companies across the United States offer discounts to vehicles with anti-theft systems installed. These systems reduce the chances of a vehicle being stolen or increase the likelihood of recovering a stolen vehicle, thereby lowering costs for insurers. In exchange for this lower risk, insurers offer discounts on vehicles with anti-theft systems.

Types of Anti-Theft Systems

There are two main types of anti-theft systems: passive and active. Passive devices, also known as automatic devices, work without manual activation from the driver. Examples include transponder keys, audible alarms, and automatic locks. Active devices, also called manual disabling devices, must be physically switched on by the driver. Examples include steering wheel locks, brake locks, and kill switches.

In addition to these, there are remote disabling systems that connect to your smartphone and allow you to control various functions of your vehicle. There are also vehicle tracking systems, such as GPS trackers and subscription services like OnStar, that help locate your vehicle if it is stolen.

Comprehensive Coverage

Theft of a vehicle is typically covered under comprehensive coverage, which is optional for vehicles that have been paid off but is required for leased and financed vehicles. If you don't have comprehensive coverage, your insurer will not cover the cost of replacing your stolen vehicle. Comprehensive coverage also covers vandalism, theft, environmental damage, fire damage, break-ins, and other costs.

Discounts Offered by Insurance Companies

Many insurance companies offer discounts for vehicles with anti-theft systems. For example, GEICO offers an anti-theft device discount of up to 23%. Most major insurance companies in the United States offer discounts for specific anti-theft systems, such as LoJack. LoJack is a vehicle recovery system that helps locate and recover stolen vehicles, with a claimed recovery rate of 90%.

To qualify for the anti-theft discount, contact your insurer to inquire about specific discounts and requirements. Some insurers may require proof of installation, such as a LoJack proof of installation form. The availability and amount of the discount may vary depending on the state and the type of anti-theft system installed.

Comprehensive coverage is optional but covers theft and vandalism

Comprehensive coverage is an optional add-on to your auto insurance policy that covers theft and vandalism. It is sometimes referred to as "other than collision" coverage, as it covers situations that collision coverage does not. This includes theft, vandalism, hail, and hitting an animal. For example, if you hit a deer, the damage would be covered under comprehensive coverage. However, if you swerve to avoid the deer and hit a tree, this would be considered a collision with an object and would not be covered.

Comprehensive coverage also covers vandalism, which is defined as someone intentionally damaging or defacing your vehicle. This can include slashed tires, broken windows, dents or scratches, and putting substances like sugar in your gas tank. If the cost of repairs is higher than your deductible, it may make sense to file a claim.

It's important to note that comprehensive coverage will not cover any personal items within the car if they are stolen during a vandalism-related incident. Coverage for personal belongings would come from your renters or homeowners insurance.

Comprehensive coverage is optional, but it can provide valuable protection for your vehicle in certain situations. Unlike some coverages, you don't select a limit for comprehensive. The most it will pay out is based on the actual cash value of your vehicle, and you will be responsible for paying your selected deductible.

Insurers reward drivers with anti-theft systems as it reduces the chance of vehicle theft

Anti-theft systems are a great way to protect your vehicle from theft, and they can also provide some financial benefits in the form of insurance discounts. While the presence of anti-theft devices may not significantly lower your insurance rates, insurers do reward drivers who take measures to prevent their cars from being stolen.

Anti-theft discounts are relatively common, and most insurers offer them to encourage the use of such devices. The discounts vary depending on the insurer and the type of device installed. Passive anti-theft alarms, which automatically activate when you remove the keys and close the doors, are typically favoured by insurers as they yield a higher discount due to their lower risk of error. Active alarms, which require manual activation, are also a great way to save on insurance, but the discount offered is usually lower compared to passive systems.

It's important to note that anti-theft discounts typically apply only to certain portions of your insurance policy, such as comprehensive coverage, which covers the theft of your vehicle. Therefore, you won't see the discount applied to collision coverage. Additionally, the discount may be minimal, ranging from 5% to 15% on average, or even as low as $1.33 per month in some cases.

Vehicle tracking systems, such as LoJack, are another type of anti-theft measure. LoJack is a battery-operated vehicle recovery system that helps locate and recover stolen vehicles. It is integrated with law enforcement, allowing for a quick response in case your car is stolen. Most auto insurance providers offer discounted comprehensive coverage for vehicles equipped with LoJack, and the presence of this system can reduce your insurance rates by 5% to 12%.

While anti-theft systems may not provide substantial savings on your insurance premiums, they are still worth considering for the added security and peace of mind they offer. Remember, always contact your insurance company to understand their specific discounts and requirements before installing any device.

Insurance companies are allowed to set profitable rates

For example, younger and older drivers often have higher insurance rates because they are considered higher-risk. Additionally, factors such as a driver's credit score, vehicle type, and location can also impact their insurance rates. Insurance companies also take into account a driver's personal information, driving history, and insurance history when setting rates.

It's important to note that insurance rates can vary significantly between different insurance companies, as each company has its own method of calculating rates. This is why it is crucial for drivers to compare insurance rates from multiple companies before choosing a policy. By shopping around, drivers can find the most affordable and comprehensive policy for their needs.

Furthermore, insurance companies offer various discounts that can help lower insurance rates. For instance, many insurance companies offer discounts for anti-theft devices, such as LoJack, which can reduce the cost of comprehensive coverage. Additionally, good student discounts, volunteer work, and affiliations with organizations can also help lower insurance rates, especially for teenagers and college students.

Overall, while insurance companies are allowed to set profitable rates, drivers can take control of their insurance costs by comparing rates, taking advantage of discounts, and maintaining a clean driving record.

Frequently asked questions