Does LoJack reduce insurance?

The cost of a LoJack is high, but the system can reduce comprehensive rates by $16 a month, on average.

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Rachel Bodine graduated from college with a BA in English. She has since worked as a Feature Writer in the insurance industry and gained a deep knowledge of state and countrywide insurance laws and rates. Her research and writing focus on helping readers understand their insurance coverage and how to find savings. Her expert advice on insurance has been featured on sites like PhotoEnforced, All...

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Written by Rachel Bodine
Feature Writer Rachel Bodine

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 Daniel Walker

UPDATED: May 26, 2022

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Things to remember...

  • LoJack is a vehicle recovery system that helps police locate stolen vehicles quickly through a radio transceiver hidden on the vehicle
  • Most insurance companies offer a discount on comprehensive coverage for installing a LoJack system
  • You can receive more discounts by installing other active or passive anti-theft systems

If you’re considering installing a vehicle recovery system like LoJack, you’re likely wondering if it will reduce your insurance rates. Most auto insurance providers will offer a rate reduction for installing a LoJack vehicle recovery system in your car. However, the reduction is minimal and only applies to comprehensive coverage.

If your primary concern is to lower your annual insurance rates, there are quite a few anti-theft discounts available. Many new models come with alarm systems, but you can also install more sophisticated features, such as those that shut down the engine of a stolen vehicle. In this article, we’ll discuss what LoJack offers, how it affects your insurance rates, and other ways that you can save.

Does having LoJack reduce insurance rates?

Not all insurers offer a rate reduction for installing LoJack on your vehicle. Most offer some form of anti-theft discount, among many other car insurance discounts. However, vehicle owners generally pay between 5% to 10% less on annual rates for having a LoJack system.

What is the average annual savings for having LoJack?

Any discount you receive for having a LoJack system will only apply to your comprehensive insurance coverage. This means that you continue to pay the same rates for liability, uninsured or underinsured motorist, collision, or any other type of coverage. 

The average annual savings vary from state to state. However, the average annual cost of comprehensive coverage is around $160 per year. With LoJack, that amounts to no more than approximately $16 in savings annually. Remember that auto insurance rates vary based on several factors, including the driver’s age, gender, driving record, and location.

Why does LoJack not reduce the cost of other coverage?

Car insurance discounts generally relate to accident and theft prevention. Cheap auto insurance after an accident can sometimes be a concern, especially if you’re on the road a lot and deal with plenty of potentially dangerous situations. This is where discounts come in handy. 

While LoJack is a great tool to lessen your expenses in the event of vehicle theft, it does not make you a safer driver.

Since it has no effect on your driving capabilities, it does not affect the cost of liability or collision coverage. Comprehensive insurance covers losses associated with theft. That is why a LoJack discount only applies to that type of insurance. Cutting down on recovery time reduces those losses.

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What is LoJack?

LoJack is a stolen vehicle recovery system designed for installation on any vehicle.

It does not aid in preventing vehicle theft as an anti-theft alarm system would; rather, it assists police in recovering a vehicle already stolen.

Auto dealers and companies with fleets of commercial vehicles commonly use LoJack. However, it is available for anyone.

In the past, reporting a stolen vehicle to law enforcement rarely resulted in a return, but that changed with vehicle recovery technology. Since it came on the market, the police can sometimes cut recovery time from months to as little as one business day.

How is LoJack used?

Once you purchase the LoJack system, a technician installs a small radio transceiver in a hidden place somewhere on the vehicle. The transceiver’s position depends on the type, make, and model of the vehicle. The goal is to ensure that a thief could not easily locate it.

Should someone steal your vehicle, the process for using your Lojack system goes as follows:

  • You report the theft to the police. An officer enters your vehicle’s VIN into their crime reporting computer system, matching your registered LoJack system code.
  • The report activates the device. The radio transceiver receives a signal from the station’s computer system using the LoJack Radio Tower Network. The transceiver then emits a silent signal that allows the police to trace the whereabouts of your vehicle on LoJack Police Tracking Computers installed in police cars.
  • Law enforcement can trace the signal. Because the system uses radio frequency rather than orbiting satellites, the signal provides a more accurate location. It even penetrates dense foliage, buildings, and any other potential hiding places.

According to the LoJack website, vehicles with LoJack have a 90% chance of recovery. Most occur within a few hours of reporting the car stolen.

How much does LoJack cost?

Installing LoJack only requires a one-time fee, with no recurring, monthly service fees. The price of a LoJack system ranges between $700 and $1,200, depending on the type of vehicle and the amount of coverage you purchase. 

A newer model vehicle will cost around $720 for essential protection. Complete protection is closer to $1,200 and includes the transceiver, an extended warranty, and the ability to set boundary and crash alerts using the SureDrive app.

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What are the pros and cons of using LoJack?

The pros of using LoJack are that you have a significantly higher chance of finding your vehicle if it’s stolen. That saves you from filing a claim with your insurance, affecting your rates. A faster recovery time is also a significant financial and emotional relief.

There are only two major downsides to LoJack. First, it is expensive, which is why you should weigh the risk of car theft with the reward of having the system. It also is not available in every state.

What other ways can you save on auto insurance?

There are many ways you can save on auto insurance, starting with researching insurance policies online to find cheap auto insurance coverage. Some common ways to save include:

  • Asking about the company’s available discounts
  • Shopping to ensure you find the best available rates
  • Keeping your driving record clean

Insurers generally do not limit the number of discounts available to a policyholder. There is quite a big list of discounts offered when it comes to car insurance. Differing discounts are stackable, but having multiple anti-theft devices still only qualifies you for one anti-theft discount.

LoJack Car Insurance Discounts: The Bottom Line

If your intention when installing LoJack is to save on auto insurance rates, it likely is not worth the cost. Having a vehicle recovery system is an excellent feature for people who live and work in areas with high vehicle theft rates, but there are better ways to save on insurance rates. The best way to save is to shop for affordable insurance, keep a clean driving record, and take advantage of the discounts available to you.

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