Does LoJack reduce insurance?

LoJack reduces insurance rates, but only on your comprehensive coverage, which averages $11 a month. More than just cost goes into determining if LoJack for cars is worth it. LoJack will also help police recover your vehicle much faster if it is stolen, giving you added peace of mind. It's worth comparing quotes from multiple companies to see which has the best LoJack auto insurance discount.

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Leslie Kasperowicz holds a BA in Social Sciences from the University of Winnipeg. She spent several years as a Farmers Insurance CSR, gaining a solid understanding of insurance products including home, life, auto, and commercial and working directly with insurance customers to understand their needs. She has since used that knowledge in her more than ten years as a writer, largely in the insuranc...

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Dan Walker graduated with a BS in Administrative Management in 2005 and has been working in his family’s insurance agency, FCI Agency, for 15 years (BBB A+). He is licensed as an agent to write property and casualty insurance, including home, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like Reviews.com and Safeco. He reviews content, ensuring that ex...

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Reviewed by Daniel Walker
Licensed Auto Insurance Agent

UPDATED: Jul 14, 2021

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Things to remember...

  • LoJack is a vehicle recovery system that will help owners and law enforcement locate a vehicle after it’s stolen
  • Many auto insurance companies offer car insurance discounts to their policyholders who have installed the LoJack recovery system in their cars
  • If you’re eligible for a discount for having LoJack, you’ll see a decrease in your comprehensive rates
  • You should check to see if the discounts for other active and passive alarms will offer you a large discount
  • Many insurance companies will ask for a certificate or other proof to show that you have a LoJack system

Does LoJack reduce rates on auto insurance? The short answer is yes, most companies offer a discount if you have any type of anti-theft system in your vehicle. However, the amount you save on car insurance won’t offset the initial price of LoJack.

It’s always nice to save money. It’s even nicer to save money regularly on something like your car insurance.

As you probably already know, auto insurance is one of those things that you can’t avoid buying. Individuals who own their vehicle outright and have a clean driving record may be able to get away with paying low rates, but borrowers and lessees don’t fare so well.

Full coverage requirements from lenders and past infractions can lead to high rates for extended periods of time. Fortunately, there are ways to find cheap auto insurance if you’re familiar with all of the discounts that insurers offer.

One of the easiest ways to find affordable auto insurance is to compare rates and find the best one for your situation. Compare auto insurance quotes by entering your ZIP code into our free comparison tool above to see how much you could save with LoJack or anti-theft discounts.

Before you say no to the LoJack you’re offered in the finance office at your dealership, make sure you know how this vehicle feature can reduce your rates

What is LoJack?

LoJack for cars is a stolen vehicle recovery system that can help your local law enforcement agency locate and recover your car if it is stolen.

There are so many different types of alarm systems being offered by dealers, as well as systems that come standard on different vehicles, that all of the terms can easily get jumbled together.

It’s important that you can differentiate between a LoJack system and another type of anti-theft system before you make a large investment in your car.

A LoJack system isn’t necessarily a theft deterrent like many other passive and active alarms that are offered to new car owners.

Instead, it’s a vehicle theft recovery system that’s meant to be used to locate and recover vehicles after they have been reported stolen.

Vehicle recovery technology is still fairly new however it can cut recovery times down. Sometimes it takes months to find vehicles that have been stolen but vehicle recovery systems can help track your car down in as little as one business day.

The device that’s installed into the car will work with the police to send a signal showing the car’s current whereabouts. Cars installed with a LoJack device have a 90 percent vehicle recovery rate.

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Do insurance companies offer rate reductions to cars with LoJack?

If you elect to pay the fee to install this system in your vehicles, there will be benefits beyond just knowing that your car will be recovered quickly.

For taking a step to mitigate losses before anything even happens, you’ll be rewarded in the form of a discount. Not all insurers offer reduced rates for LoJack, but a majority do offer discounts as an incentive.

For example, a State Farm LoJack discount doesn’t exist, but the company does offer a general anti-theft discount.

If you’re not quite convinced that LoJack for cars is worth it, it’s important that you research how much you’ll save.

It doesn’t make a lot of sense to purchase the system strictly for the car insurance discounts because the price reduction isn’t that significant. The discount will typically save you between five and 10 percent off of some of your coverage options.

Is LoJack worth it?

How much does this system help you save on insurance? Is it worth the upfront cost?

The cost of installing LoJack is significant. Some car insurance companies offer a discount for having the system, however, the discount offered isn’t off of your total rates.

If you would save up to ten percent on a $1500 annual rate, you’d be saving nearly $150 per year for having the system.

Unfortunately, this is a common and dangerous assumption that many consumers make. The mistake that you’re making is the assumption the discount is applied to each and every coverage option that you carry.

When you have a LoJack system installed in your car and your company offers a discount, the discount that’s being advertised by your insurer will only reduce your comprehensive insurance premiums.

It won’t reduce any of the following coverage options on your policy:

  • Liability
  • Collision
  • Any other coverage

Take a look at this table to see the average cost of comprehensive coverage in your state.

Average Annual Auto Insurance Rates for Comprehensive Coverage by State
StateAverage Annual Auto Insurance Rate for Comprehensive
Alabama$146.28
Alaska$141.08
Arizona$184.20
Arkansas$183.36
California$99.29
Colorado$158.34
Connecticut$126.02
Delaware$113.23
District of Columbia$230.25
Florida$110.12
Georgia$153.61
Hawaii$100.09
Idaho$110.78
Illinois$117.98
Indiana$115.02
Iowa$171.58
Kansas$230.65
Kentucky$130.15
Louisiana$208.59
Maine$96.66
Maryland$146.77
Massachusetts$128.92
Michigan$147.02
Minnesota$173.04
Mississippi$194.74
Missouri$166.34
Montana$199.87
Nebraska$206.24
Nevada$116.79
New Hampshire$103.03
New Jersey$123.18
New Mexico$166.89
New York$156.66
North Carolina$123.00
North Dakota$227.64
Ohio$112.74
Oklahoma$201.56
Oregon$89.66
Pennsylvania$132.01
Rhode Island$122.17
South Carolina$165.38
South Dakota$228.59
Tennessee$135.62
Texas$186.70
Utah$106.57
Vermont$118.31
Virginia$129.89
Washington$104.11
West Virginia$195.04
Wisconsin$126.34
Wyoming$222.86
Countrywide$138.87
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Although the discount only applies to your comprehensive coverage, you will still be saving money.

What is the average annual auto insurance savings for having LoJack?

While average rates vary significantly from state to state and person to person, looking at nationwide averages can help you estimate how much you’ll save.

On average, you will pay around $143.45 per year on comprehensive coverage alone, with a $500 deductible. If your company offers a seven percent discount, you’ll only be saving $10 per year.

Why don’t you save on other coverages with LoJack?

If you’re only investing in LoJack to save money on your insurance, the price reduction isn’t big enough to make the investment.

You would have to have your car for 70 years just to make up for the LoJack cost. Some consumers are shocked that a LoJack only saves them money off of comprehensive coverage, but it does make a lot of sense.

Having a stolen vehicle recovery system doesn’t make you a safer driver.

Since it doesn’t change how you drive or your likelihood of having an accident, it won’t affect your liability and collision rates. The only thing that the system does is reduce the time it takes to recover a stolen car.

Since the car is recovered quicker, settling the claim will cost the insurer less money. Comprehensive pays for theft losses and therefore that’s where the discount is applied.

What do you need to know about LoJack?

Although the price is definitely an issue, there are other factors to consider before buying this product.

How much does LoJack cost?

How much you’ll pay for your system depends on where you buy it and what type of system you choose.

The standard LoJack Stolen Vehicle Recovery System has a price tag of $695 for the initial installation. If you buy the advanced program with Early Warning features, you’ll pay $995.

Some dealers will waive certain fees. Unlike some other security systems, LoJack only requires a one-time payment.

What are the benefits of installing LoJack on your vehicle?

LoJack helps the police find your car much faster. This means you won’t have to file a claim with your auto insurance company.

Filing a claim and getting your settlement takes time and energy. Not to mention, a claim affects your car insurance rates.

Getting your car back fast lets you skip the hassle and added expense.

What are the downsides to using LoJack?

The only downside is that this product isn’t available everywhere. It’s only available in Washington D.C. and 27 states in the U.S.

Where is LoJack installed on your car?

There are multiple locations on your car that the device can be installed. Once activated, the device emits an electronic signal that police can track.

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How can you save money on auto insurance rates?

There are many different ways to save money on car insurance. Keeping your driving record clean, asking for discounts, and shopping around can get you the best deals on your auto insurance.

Do most auto insurance companies offer anti-theft discounts?

Theft costs money for you and the auto insurance company. That means it’s in the car insurance company’s best interest that your car not be stolen. This is why they give you an incentive to install an anti-theft device.

Although most car insurance companies offer anti-theft discounts, not many offer a specific LoJack discount.

Can you stack auto insurance policy discounts?

Insurers don’t offer just one discount per policy. You’ll be given all types of incentives to install alarms in your vehicle, stay loyal to the insurer, and keep a clean driving record.

Most discounts are stackable, but you probably will only be able to take one type of alarm discount. That limit means you can only save for an active, passive, or LoJack system.

Can you get good auto insurance rates with LoJack?

So, is this investment worth the money? That really depends on you and what the peace of mind of having your car found quickly is worth to you.

Buying a car with LoJack will save you, but the savings aren’t huge. The best way to save money off of your rates is to shop around.

Use our rate quote tool to compare rates with the leading insurers in your area, and you’ll have the power to find the best rate. Enter your ZIP code to compare auto insurance rates with LoJack or anti-theft discounts.

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