Car theft in the US is on the rise, with over 1 million vehicles stolen in 2022 and 2023. Installing an anti-theft device gives you a two-for-one – protects your vehicle and reduces car insurance premiums. Many auto insurance companies offer discounts for vehicles with these security features as they help reduce auto insurance rates and financial loss from auto theft.
Let’s examine the different types of anti-theft devices, their benefits, and why car insurance companies encourage their clients to use them.
Does Car Insurance Cover Theft?
The only type of auto insurance that covers vehicle theft is comprehensive coverage. This is usually optional for personal vehicle owners. If you don’t have comprehensive coverage, your car insurance provider will not pay to replace a stolen vehicle. Not having an anti-theft device makes it several times more unlikely to be stolen by potential thieves.
Car Insurance does not cover the theft of personal belongings inside a stolen vehicle. However, you can file a claim with your home or renter’s insurance provider to recover the loss. Remember that if your deductible exceeds the value of the stolen items, filing a claim may not be worth it.
What Are The Best Types of Car Anti-Theft Devices?
You don’t have to be an automotive or security expert to understand the different types of anti-theft devices and the auto insurance discounts that come with them.
Anti-theft devices for cars shouldn’t just be installed for the sake of car insurance discounts. It would be best to look at anti-theft device installation and how each anti-theft device can affect your car.
While most anti-theft devices don’t harm the vehicles installed, you don’t want to be stuck with unnecessary anti-theft equipment if you live in a low-theft area.
The following sections examine anti-theft devices and their discounts on auto insurance premiums.
Passive Anti-Theft Systems
Automatic anti-theft devices, also known as passive devices, don’t require you to do anything to activate them. Many newer vehicles have built-in systems that engage when you turn off the ignition or lock the car. These devices improve vehicle security by preventing unauthorized access and deterring theft.
The most common types of passive anti-theft devices are listed below.
- Alarm Systems: These engage when you turn off the ignition or close the car door. Some have additional disabling features, like a computer chip in the ignition key, to prevent unauthorized use. However, while alarms can deter theft, frequent false activations have reduced their effectiveness.
- Smart Keys: Also known as keyless entry systems, smart keys communicate with your vehicle’s computer to ensure that only authorized users can start the car. Most cars now come with smart keys, but older models can be upgraded at a dealership or locksmith.
- Dash Cams: While mainly used for recording road incidents, some dash cams offer continuous surveillance and can detect motion or impact while the vehicle is parked, capturing evidence in case of theft or vandalism.
- Vehicle tilt and Glass Break Sensors: These sensors trigger an alarm if they detect movement (e.g., someone trying to tow the car) or a broken window, alerting the owner and the thief.
- Transponder Keys: These keys have a microchip that must be inside the vehicle for the ignition to start. The car can’t be hot-wired without the correct key, making it much harder to steal. Studies show that transponder keys reduced car thefts by 40% between 1995 and 2008.
Having these automatic security features gives you extra protection without lifting a finger, and you may even qualify for a car insurance discount on your policy.
Active Anti-Theft Systems
Active anti-theft devices, also known as manual disabling devices, require driver activation each time they are used. While Active devices demand regular engagement, they offer strong security measures that can deter thieves and prevent vehicle theft.
Common Active Anti-Theft Devices are listed below.
- Steering Wheel Locks: These devices physically prevent the steering wheel from being turned, making it impossible for a potential thief to drive away. They are a strong visual deterrent and easy to install and remove.
- Brake Locks: A brake lock clamps onto the brake pedal, which prevents it from being used. This makes the car undrivable even if a thief starts the engine.
- Kill Switches: A kill switch cuts off the flow of electricity to essential engine components, like the ignition system or fuel pump, making it impossible for the car to start unless the owner deactivates the switch. These devices are often discreetly installed for added security.
- Battery Disconnect Switches: This type of simple device cuts off the battery’s power supply, preventing the vehicle from starting. They are cost-effective, easy to use, and highly effective against theft.
- Tire Clamps (Wheel Clamps): Tire clamps attach to the wheel, preventing rotation and making the vehicle undriveable. Their bright design is a visible deterrent to potential thieves.
- Remote Locks: These locks allow vehicle owners to secure their cars using a key fob or mobile app, preventing unauthorized access.
- Faraday Bags: A Faraday bag blocks radio signals from your key fob, preventing criminals from hacking the signal to access your vehicle. These are particularly useful for keyless entry cars.
Drivers can add more security to their vehicles by installing active anti-theft devices. Active devices require manual activation but are highly effective at making vehicles more complicated to steal. These devices can save you money on your monthly car insurance premiums.
GPS Tracking Systems
Tracking devices help find and recover stolen cars by sending real-time location data to the owner or the police.
Unlike other anti-theft devices, these tracking systems help recover the vehicle after it’s stolen. Many offer remote monitoring, alerts, and even immobilization to prevent thieves from stealing the car.
Some Common Tracking and Recovery Systems are listed below.
- GPS Trackers: GPS trackers provide real-time location updates and allow you to track your vehicle through a mobile app. Some models also send alerts via text or email if the car moves unexpectedly. Thieves might be discouraged if they see a visible GPS tracker inside the vehicle.
- Vehicle Recovery Systems (e.g., LoJack): These systems use radio frequency technology to help police find stolen vehicles. Unlike GPS, which requires a clear satellite signal, LoJack works in underground parking garages and other hard-to-track areas. Some models alert if the car is moved without the key fob inside. These devices have a 90% recovery rate but are expensive.
- Subscription-Based Tracking Services (e.g., OnStar): These services provide GPS tracking, remote engine disablement, and theft alerts. If a theft is reported, the system can prevent the engine from starting and give police the exact location of the vehicle. OnStar is one of the most well-known subscription services, starting at $25 per month.
By putting tracking and recovery systems in your car, you increase the chances of getting your vehicle back quickly if it’s stolen. These devices give you peace of mind and help police recover stolen vehicles.
Remote Disabling Systems
An innovation in theft prevention is remote disabling systems. These systems connect to your smartphone and can slow the car down, downshift gears, or lock the brakes. While effective, they are pricey and mainly used in commercial vehicles, not private cars.
VIN Etching
VIN etching is a simple and low-cost way to deter vehicle theft. Using a stencil and chemical solution, you can permanently etch a vehicle’s ID number (VIN) onto the windows. This helps the police identify stolen vehicles, and the thief can’t sell the car without replacing the windows. The effectiveness of VIN etching is that it makes the car traceable, so the thief has to replace the windows before they can sell it—an inconvenience that reduces their profit significantly.
Audible Vehicle Alarm Anti-Theft Systems
Audible alarms are another subcategory of anti-theft devices. While you choose between a passive car alarm or an active auto alarm, you’ll also need to decide what you want the car alarm to do once it’s activated.
One of the two options is a typical car alarm blare. It’s a primarily reliable car theft deterrent, but the auto insurance discounts are less than the alternative.
How to Get an Anti-Theft Device Discount on Car Insurance
If your vehicle is equipped with a theft-prevention device, you may be eligible for an anti-theft discount on your car insurance policy, if your insurer offers it.
Availability and the amount of the discount vary by car insurance company and state, so check your insurance provider’s website or speak with an insurance agent to confirm eligibility.
Some insurers require proof of installation before they apply the discount and may restrict eligibility to specific approved anti-theft devices.
While many insurers offer these discounts to drivers with an anti-theft system, 12 states require insurance companies to provide a discount to policyholders with comprehensive coverage.
The 12 states that require Anti-theft discounts are listed below.
- Florida
- Illinois
- Kentucky
- Louisiana
- Massachusetts
- Minnesota
- New Mexico
- New York
- Pennsylvania
- Rhode Island
- Texas
- Washington
If your current insurer doesn’t offer an anti-theft discount, you may want to shop for quotes from other providers to find the best deal. Reviewing your car insurance policy regularly ensures you’re getting the best rate and maximizing additional discounts.
What Qualifies as an Anti-Theft Device for a Car Insurance Company?
Car insurers will recognize passive and active anti-theft systems as eligible devices if installed permanently in the vehicle. Approved anti-theft devices can be installed by the manufacturer in the factory before purchase or added as an aftermarket modification.
How Much Can Anti-Theft Devices Save on Auto Insurance Rates?
The discount for vehicles with anti-theft devices varies but can range from 15% to 20% off your car insurance premiums. However, the discount will vary depending on the car insurance provider, vehicle, and anti-theft device.
Anti-theft discounts usually apply to comprehensive insurance policies only. There is some debate about whether policyholders with only basic liability insurance will get similar discounts on their vehicle insurance premium.
Do Factory Installed Car Alarms Qualify for Anti-Theft Insurance Discount?
Car insurance providers will consider factory-installed vehicle alarms when determining car insurance rates. However, many drivers replace their original alarms with aftermarket systems that may qualify them for additional anti-theft insurance discounts.
Almost all major insurance providers offer discounts for vehicles with anti-theft devices. Check with your insurance agent today to see if you’re eligible and how much you can save.
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Frequently Asked Questions
Will anti-theft devices raise your insurance rates?
No. If your vehicle has multiple anti-theft features, your car insurance company may view you as a lower risk. Since insurers consider anti-theft devices as risk mitigators, installing them will make you eligible for a discount on your auto insurance. To encourage proactive vehicle protection, insurance companies offer discounts to owners who take measures to prevent theft.
What is the best anti-theft tracking device for car insurance discounts?
The Tag System uses a multilayered approach of theft prevention, electronic identification, and advanced vehicle tracking technology to deter theft and aid in the recovery of stolen vehicles. For over 10 years, Tag has been the leader in stolen vehicle recovery in North America, recovering millions of dollars in stolen assets. According to reports, the system has prevented theft in 99.82% of cases.
How much does a GPS tracker reduce your insurance premiums?
The savings on auto insurance for a GPS tracking system can vary. Depending on the type of tracker and the auto insurance policy, the discount can be anywhere from 5% to 30%.
Is it worth putting GPS trackers in my cars?
Installing a tracker in your vehicle is a worthwhile investment. Besides the potential savings on car insurance rates, it will prevent financial loss and inconvenience in case of theft and give you peace of mind for your vehicle.
