Anti-Theft Device Discount in Car Insurance

Did you know that you can lower your auto insurance premiums by having, or installing, anti-theft devices in your car? Most modern cars have built-in anti-theft features like engine immobilizers and basic security systems like sound alarms, shock sensors, and a remote key fob.  

So, are the factory-installed security features enough for an anti-theft device discount? Or do you need additional anti-theft devices to qualify for the anti-theft discount? Also, how much can you save with the anti-theft device discount? If you have these questions in mind, this guide explains everything you need to know.

What are Anti-Theft Devices for Car Insurance

Anti-theft devices are tools and technologies designed to deter vehicle theft, prevent unauthorized access or engine start-up, and help recover the vehicle if it’s stolen. These systems can be factory-installed by the manufacturer or added later as aftermarket equipment. 

Common anti-theft devices include: 

Anti-Theft Devices that Qualify for Car Insurance Discounts  

If your car is equipped with the following anti-theft devices, it should be eligible for the anti-theft discount. While eligibility can vary by insurer and state, these are the anti-theft devices that are commonly recognized for discount approval.

Security Features that May Not Qualify for Car Insurance Discounts 

If your car lacks comprehensive anti-theft features, then you may not qualify for the anti-theft device discount. The main eligibility criteria are to have advanced security features or additional devices to prevent theft. So, many standard or basic factory-installed features aren’t considered advanced enough to meet insurers’ eligibility requirements as follows.

However, if you have the required anti-theft devices, it can significantly reduce the chances of theft and even increase the chances of its recovery. So, to encourage drivers to ensure adequate anti-theft protection, insurers provide this discount.  

Also, it’s important to know that car thefts are common in the U.S. According to NICB, over 1 million cars were stolen in 2022 and 2023. In the year 2024, car insurance thefts decreased by 17% but it is still alarmingly high, as 850,708 were stolen throughout the U.S. 

Given the fact that car thefts are common in the U.S., there’s always a substantial risk, which is another reason why insurers reward drivers who take preventive measures with lower premiums and exclusive discounts.

How Much Can You Save With an Anti-Theft Car Insurance Discount? 

On average, you can save from 5% to 25% on the portion of your comprehensive coverage and gap insurance coverage. These two coverages provide payouts to meet your car’s replacement costs if it’s stolen. 

Typically, the amount of discount provided varies across states and among insurers. So, contact your insurer to find out how much you can save on car insurance with an anti-theft discount.  

If you’re struggling to save on car insurance, you should consider finding a reliable insurance provider that offers an affordable auto insurance policy with the best coverage options. With USA Auto’s cheap premiums, you can lower your premiums and even qualify for exclusive rates.

How to Get an Anti-Theft Discount on Car Insurance?

If your car meets the anti-theft feature requirements, then your insurer may either offer the discount upon purchasing the policy or may automatically add it to your policy at the time of renewal.  

However, there are times you need to apply for the discount or provide the required documents to prove your eligibility. So, here’s a step-by-step guide on what you need to do to get the anti-theft device discount on car insurance.

If you plan to purchase an additional anti-theft device to qualify for the discount, always contact your insurer beforehand to confirm whether the device is eligible. Not all security systems are recognized for this discount, and some require certified or authorized installation to be approved. 

It’s important to notify your insurer as soon as the device is installed, whether it’s before purchasing a policy, during a policy update, or at renewal, so they can verify eligibility and confirm whether you qualify for the discount.

The Bottom Line: Is it Worth it to Install an Anti-Theft Device to Save on Car Insurance?

Yes, it’s worth it to install an anti-theft device to save on car insurance. Your car insurance is typically a recurring investment; you will need to spend an annual budget, whereas purchasing and installing anti-theft devices could be a one-time investment.  

The best part is that there are dual benefits; it increases your chance of saving on annual premiums, and it helps to prevent car theft. If you compare the costs, the average cost of car insurance for minimum coverage is $816 per year, and full coverage is $2,700 per year. 

Whereas the cost of purchasing anti-theft devices can range anywhere from $50 to $1,000 or more. So, let’s say even if it requires $1,500 to install anti-theft devices on your car, it can help you secure $135 to $675 in anti-theft device discounts per year.  

So, it’s definitely a worthy investment as your potential savings add up over time. If you’re still uncertain whether the savings make sense for your situation or you need help comparing auto insurance coverage options, contact us today for a free quote.

 
Frequently Asked Questions (FAQs)

What is an anti-theft device in an insurance policy?

An anti-theft device in an insurance policy refers to a security tool or system installed in a vehicle to prevent theft, deter unauthorized access, or help recover the car if it’s stolen. Examples include car alarms, GPS tracking systems, immobilizers, and steering wheel locks. Insurance companies often offer discounts on comprehensive coverage when a vehicle is equipped with approved anti-theft devices. 

Do insurance companies give discounts for security systems?

Yes, many insurance companies offer discounts if your vehicle is equipped with approved security or anti-theft systems. These discounts are typically applied to the comprehensive and gap insurance coverage portion of your auto insurance because security devices help reduce the risk of vehicle theft. The exact discount amount and qualifying devices can vary by insurer and state, so it’s best to check with your provider to see which security features are eligible and how much you can save. 

Does an anti-theft device make insurance cheaper?