Anti-Theft System: Cheaper Auto Insurance?

Installing an anti-theft device in your car can help prevent vehicle theft and may also get you a discount on your auto insurance. There are two main types of anti-theft devices: passive and active. Passive devices, such as transponder keys, alarms, and automatic locking doors, work automatically without any effort from the driver. Active devices, like steering wheel locks and brake locks, require manual activation. Anti-theft devices can help insurance companies save money by reducing the number of stolen vehicles, and they pass these savings on to customers in the form of discounts. The discount amount and eligibility requirements vary by company and state, but it's worth checking with your insurer to see if you can take advantage of this opportunity to protect your car and save money.

Manual disabling devices

• Steering wheel locks: This device immobilises your steering wheel, preventing theft by ensuring a lack of movement.
• Brake locks: This lock makes it impossible to push down on the gas pedal and drive away until disabled.
• Kill switches: This option requires installation and disables all electricity in the vehicle, rendering it undrivable until turned off by the owner.

Automatic disabling devices

Passive disabling devices include transponder keys, which must be inside the vehicle for it to be driven. Without the key, the car cannot be hot-wired and thieves cannot break the ignition lock. A 2015 study found that transponder keys decreased car thefts by 40% between 1995 and 2008.

Audible alarms are another example of a passive device. Most cars are equipped with an alarm system that sounds loudly when it detects unwarranted touch. However, alarms are sensitive and can be set off easily, and passersby are so used to hearing car alarms that they are not the most effective way to prevent theft.

Passive disabling devices also include alarm systems that activate automatically when the ignition is turned off or the car door is shut. Some cars automatically lock the doors when the key is a certain distance away from the vehicle.

Passive anti-theft devices immobilise the car's engine. They are ideal for anyone who has been the victim of car theft in the past, or who lives in an area with high car theft rates, such as California, Texas, or Florida.

Passive disabling devices are a great way to prevent car theft, but they are not the only option. Tracking systems, for example, can help the police locate your car if it is stolen.

Remote disabling systems

The system can be activated by any smartphone, mobile phone with SMS service, tablet, or PC. Once the vehicle has been stopped, its location can be swiftly tracked, and the car and any goods inside can be recovered. This type of system is more commonly used in commercial vehicles than personal cars, mainly due to the expense.

In terms of insurance, many companies offer discounts for anti-theft devices, and twelve U.S. states require insurance providers to offer this discount to policyholders with comprehensive coverage. However, it is unclear whether a remote disabling system would be included in this, so it is best to check with your insurance provider.

Vehicle tracking systems

There are several options available for vehicle tracking systems, including GPS trackers, subscription services, and vehicle recovery systems. GPS trackers can be purchased and installed in your vehicle, allowing you to track its location at any time. They often come with additional features such as alerts, trip logs, and vehicle health monitoring. Subscription services, such as OnStar, offer similar tracking capabilities along with remote engine disabling for a monthly fee. Vehicle recovery systems, like LoJack, use radiofrequency technology to locate your car and have a high recovery rate, but they tend to be more expensive.

When choosing a vehicle tracking system, it is important to consider factors such as battery life, subscription costs, and notification options. Some devices offer advanced features like fuel monitoring, driving behaviour analysis, and geo-fencing alerts. Additionally, certain systems may have more user-friendly interfaces and apps, making them easier to operate.

While vehicle tracking systems can provide peace of mind and potentially reduce insurance costs, it is worth noting that they may not guarantee the prevention of theft or recovery of your vehicle. It is always advisable to compare different options and consider your specific needs before making a purchase decision.

Discounts vary by state

While many insurance companies offer discounts for anti-theft devices, the availability and specifics of these discounts vary by state. Twelve U.S. states require insurance companies to offer anti-theft device discounts to policyholders with comprehensive coverage. These states include Massachusetts, which offers at least a 25% discount for both a passive alarm system and an auto-recovery device.

Even if your state does not require insurance companies to offer anti-theft device discounts, your insurance provider may still offer a discount. However, these discounts will vary from state to state and company to company.

To find out if your state requires or offers anti-theft device discounts, you can contact your insurance company or agent. They will be able to provide you with specific information about the discounts available in your state. You can also look up the details yourself online.

It is important to note that insurance companies may require proof of installation of an anti-theft device before granting a discount. Additionally, some companies only offer discounts for manufacturer-installed anti-theft devices, while others accept both factory-installed and aftermarket devices.

The amount of the discount may also vary depending on the type of anti-theft device and the level of protection it provides. For example, a passive car security system may save you up to 30% on comprehensive insurance, while less sophisticated equipment may result in smaller savings of around 15-20%.

Frequently asked questions