An anti-theft device is a safety feature that secures a car from unauthorized access. In addition to protecting your vehicle, an anti-theft device positively impacts the car insurance premium. Since the insurance principle is based on perceived risk, insurers favor people who’ve installed the device.
Policyholders with anti-theft devices will likely enjoy affordable premiums than those without any security feature. The reduced risk of car theft minimizes the risk of filing a car theft-related claim.
More importantly, you can protect your investment by acquiring an auto insurance package from a trusted insurance agency.
If you’re a car owner, you know that keeping your vehicle safe and secure is a top priority. No one wants to walk out in the morning and discover their car damaged or stolen. That’s why many drivers choose to invest in anti-theft devices like car alarms, steering wheel locks, ignition kill switches and GPS trackers.
While these devices provide peace of mind by preventing auto theft, rumors persist that they can actually raise your insurance rates. Some people believe that insurers penalize you for installing anti-theft equipment by increasing premiums. Is there any truth to this urban legend?
In this article, we’ll separate fact from fiction when it comes to how anti-theft protections impact car insurance costs. You may be surprised to learn that far from raising your premiums, most devices actually save you money on insurance!
Do Insurance Companies Require Anti-Theft Devices?
First let’s clear up a common misconception. There is no law or regulation that requires you to install anti-theft devices in order to obtain car insurance. Insurance companies do not mandate them as a condition of providing coverage.
Whether or not you add any type of anti-theft system is completely optional. You can still get insured with or without them. Any rumors about required installations are bogus.
Insurers may recommend anti-theft devices and offer discounts for using them which we’ll cover more below. But they absolutely do not require them. You ultimately choose whether to add them based on your specific needs and situation.
How Car Alarms Really Impact Premiums
One of the biggest myths surrounds basic car alarms. These alarms trigger audible sirens, horns, lights and other deterrents when suspicious activity is detected. Many drivers assume that getting a car alarm will spike their rates.
In reality, a standard factory-installed or professionally-added car alarm will either have no effect on your premiums or may actually save you money:
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No effect: Most insurers ignore basic alarms when determining rates. They neither raise nor lower premiums based on alarm installation.
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Discount possible: Some insurers give discounts for alarms, typically 5% to 15%. Discounts may require professionally installing an alarm system vs. DIY add-ons.
The bottom line is that car alarms do not cause an increase in your premiums. And they may even pay for themselves over time in insurance savings!
GPS Trackers Can Earn You a Break on Premiums
Another popular anti-theft device is GPS tracking. These systems use cellular and satellite networks to continuously monitor your car’s location. Some even have apps that let you remotely disable the starter to prevent theft.
But will linking your car to a tracking service drive up your insurance rates? Generally speaking, the opposite is true:
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Most insurers offer discounts for installed GPS trackers, usually around 5% off your comprehensive coverage.
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Tracking devices can help expedite recovery if your car is stolen, reducing claim payouts. This saves insurance companies money.
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Usage-based insurance programs may provide additional discounts for driving data that shows responsible habits.
As technology improves, more insurers are embracing GPS trackers. While premium hikes are unlikely, discounts reward you for enabling vehicle recovery.
Steering Wheel Locks Don’t Boost Premium Costs
Many drivers employ a low-tech solution by using steering wheel locks, aka “The Club.” This simple mechanical device attaches to the steering wheel and prevents it from turning. But could this conspicuous anti-theft tool backfire by raising your rates?
Once again, steering wheel locks won’t cause your insurer to increase premiums. Most companies ignore them when calculating rates. However, some may offer small discounts of around 5% for using locks.
While not as sophisticated as alarms or GPS, these inexpensive and easily removable locks still provide a physical deterrent. And they certainly won’t penalize your pocketbook when it comes premium time.
Ignition Kill Switches Can Save You Money
High-end anti-theft approaches include installing ignition kill switches. These devices interrupt power to the engine and prevent starting without a coded key or fob. Many worry that sophistication comes at the cost of higher rates.
Thankfully, that’s not the case at all. Reputable insurance companies recognize the theft deterrent value of ignition kill switches. Most won’t hike your premiums, and many offer discounts between 5-15% for professionally installed kill switches.
Savings may require submitting proof of installation. But avoiding claim payouts for stolen vehicles means insurers are happy to give you a break on premiums in return.
The Rare Case of Premium Increases
While it’s extremely rare, there is one hypothetical scenario where installing an anti-theft device could indirectly cause premium increases:
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If adding the device significantly increased your vehicle’s value, it could potentially bump you into a higher value tier for coverage.
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For example, if adding a $3,000 GPS tracking system put your car over a threshold where higher premiums apply.
Even in cases like this, the premium increase would be small and secondary to the overall added value rather than the device itself. It’s an edge case unlikely to apply to most policyholders.
The takeaway? Unless you make really expensive upgrades, anti-theft protections either have no impact on premiums or offer savings – not rate hikes.
Don’t Skimp on Security to Save Money
With all the facts straight, hopefully any worries about anti-theft devices increasing your car insurance costs can finally be put to rest. It makes no sense to skimp on security just to chase potential savings on premiums.
In reality, protecting your vehicle with alarms, immobilizers, tracking and other deterrents can earn you discounts from most insurers. Even if your rates stay the same, the peace of mind is priceless. Don’t take risks just to save a few bucks.
Work with your insurance agent or use online discounts tools to explore available savings tied to anti-theft devices. The right protections can pay for themselves over time through lower premiums. More importantly, they help keep your vehicle safe, preventing financial loss and headaches from theft.
In closing, don’t believe unsubstantiated rumors. Take control of your car’s security with confidence knowing anti-theft tech saves you money rather than draining your wallet. Protect your investment and get rewarded on your premiums!
Different Types of Anti-theft Devices
- Steering Wheel Lock: A steering wheel lock is a metal rod that sticks out from the steering wheel and stops it from turning. You can only open the lock with a dedicated key. When the metal bar is in place, the steering lock stops you from turning the steering.
- Car Alarm: There are many kinds of car alarms, from basic ones with door sensors to more complex ones with proximity sensors. When you turn on the car alarm, a sensor gets a signal and makes a noise. Sometimes, it flashes lights all the time. If it doesn’t record any strange activity, the alarm stays silent and can’t be heard.
- Kill Switch: One of the most advanced ways to stop theft is with a kill switch. The switch stops the flow of electricity to the fuel pump and other important parts of the car. Because of this, the only way to start the car is to flip the switch. Most of the time, a kill switch keeps thieves away because it takes time to find.
- A GPS tracker uses the satellite network to figure out where a receiver is. GPS stands for “Global Positioning System.” A GPS tracker sends signals to a dashboard on the web or an app on your phone. If your car is stolen, it’s easy to find because you can see where it is at any time, even if it’s in a different country.
- Car Key Signal Blocker: Thieves who try to copy or boost your wireless key can’t get into your car with a signal blocker and protector. A key bag is a great example of something that can block your car key’s signal. Thieves can’t use the bag to pick up a signal from your car keys.
Impact of Anti-Theft Devices on Car Insurance Premium
If you’ve installed different anti-theft features, the insurer has a low perceived risk for you. Generally, insurers perceive anti-theft devices as risk-reducing devices. As a result, you may be eligible for a discount on your vehicle insurance premium.
Insurance companies offer discounts to encourage vehicle owners to proactively protect their vehicles against theft.
Drivers told to install anti-theft devices or face higher car insurance premiums
FAQ
Will antitheft devices raise your insurance premiums?
What does anti-theft device mean for insurance?
Why do some insurance companies offer discounts to drivers who install security devices in their vehicles?
Which type of insurance provides you with coverage if you suffer from theft or natural?
Can anti-theft devices lower your car insurance premium?
If you have a qualified anti-theft device installed in your car, your insurer might even reward you by lowering your insurance premium. More specifically, equipping your car with anti-theft devices might score you a discount on the comprehensive coverage section of your auto insurance policy.
What is a car insurance anti-theft device?
A car insurance anti-theft device can protect your vehicle and lower premiums. Auto anti-theft devices are tools installed by a vehicle’s manufacturer or a driver to safeguard the car against theft.
Why do car insurance companies give discounts on anti-theft devices?
Many insurance companies grant discounts to policyholders whose vehicles contain anti-theft devices because it helps insurers save money on coverage costs. A car insurance anti-theft device can protect your vehicle and lower premiums.
Do anti-theft devices qualify for car insurance?
Both passive and active anti-theft systems that are installed permanently in your car could qualify as an approved device by your car insurance company. These devices can be installed either by the manufacturer of the car before buying it or after the fact. How do anti-theft devices affect my car insurance premium?