Does a vehicle recovery system affect insurance prices?

There is no worse feeling than coming out of work or a quick trip to a grocery store only to find out your car has been stolen. You call the police to report your car stolen, but there isn’t much hope of finding your vehicle unless you have a vehicle recovery system.

Purchasing a vehicle with a vehicle recovery system or installing one is a great way to ensure that your investment is wise. Not only can it protect your car from theft, but it can also help you save on your car insurance rates.

What is a vehicle recovery system?

A vehicle recovery system is a tracking system designed to help auto owners get their cars back after beingn stolen. When looking at discounts from insurance companies, the term anti-theft device is often used. An anti-theft device is something that is installed to prevent theft. Both the vehicle recovery system and anti-theft device are eligible for a discount through companies that offer one.

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Can a vehicle recovery system affect insurance prices?

Some insurance companies offer a discount for an anti-theft vehicle recovery system. According to the National Highway Traffic Safety Administration, a vehicle was stolen every 43.8 seconds in the United States in 2019. $7.4 billion was lost to motor vehicle theft in 2020. Claims like this cost the insurance company an average of $7,000 per claim, so it is in their best interest to offer discounts for theft protection.

To ensure your vehicle is covered from theft, you want comprehensive coverage. You won’t be covered if you only have liability, so check with your insurer to ensure you are insured with comprehensive coverage.

Best Vehicle Recovery Systems

There are several different types of vehicle recovery systems.

• GPS tracking. GPS tracking for your car is a device placed in your vehicle to track its movements. It is like the GPS we use to navigate our routes. These auto GPS tracking devices can let an owner know their car on a digital map. GPS may help to recover your car if it is stolen.
• Remote shutdown systems. Remote Vehicle Shutdown, like a kill switch, is a system that can help you enable the option of remotely shutting down your car if installed. It uses radio frequencies to do so. Remote shutdown systems are a great option to have. unfortunately, a bill — which has been signed into law by President Biden, states that the kill switch, which is referred to as a safety device, must “passively monitor the performance of a driver of a motor vehicle to identify whether that driver may be impaired accurately.”
• Location-based alert systems. Location-based alert systems provide you with geographically-relevant alerts. These systems use data to alert you to where your car may be. These systems are used in smartphones. Systems that send us emergency weather alerts also use this technology.
• Vehicle recovery system with an active subscription. With a paid subscription to services such as OnStar, your car can be remotely slowed and stopped. The recovery systems through companies like OnStar can also prevent your car from being started again. These subscriptions also have GPS that can track your car when it is stolen through GPS. (For more information, read our “What does an insurance company do when your car is stolen?“).

Insurance Prices

We all look for ways to save money, especially in today’s economy. Some insurance companies give many discounts, including those with a vehicle recovery system anti-theft device. Not only will you save on your insurance, but also protect your vehicle.

When purchasing insurance, check different companies to see what kind of discount they give when your car has a vehicle recovery system. To help you get started, here are some auto insurance companies that offer a vehicle recovery system discount.

Company	Offers discount
Allstate	Varies by state
State Farm	Varies by state
Farmer’s	Varies by state
Geico	Yes
Liberty Mutual	Varies by state
Nationwide	Varies by state
USAA	Varies by state
AAA	Varies by state
Progressive	Yes
Mercury	Yes

Read more: Mercury Insurance Company of Georgia Car Insurance Review

Allstate

Allstate is known for giving its auto insurance holders discounts. Whether a new driver or one is reaching their golden years, auto insurance policyholders have an excellent discount, including a 10% discount for a vehicle recovery system installed on your car. Considering most new cars come with a vehicle recovery system anti-theft device, you more than likely can the discount.

State Farm

With State Farm, there is a discount for having an anti-theft device installed on your car. This could be an alarm, remote shut down system, or anything in between. The discount for an anti-theft device through State Farm is 15% on average. This amount may vary based on the state you live in or the device you have, so it is best to check it out.

Farmer’s

Farmers Insurance does offer a discount for having an anti-theft device. The discount may vary based on device type. The only issue is that it is not offered in every state. To find out if you are eligible for the discount in your state, you should contact your local Farmer’s agent.

Geico

Geico auto insurance has one of the deepest discounts for installing a vehicle recovery system on your car. You can get a discount of up to 23%. The only drawback may be that this discount is that the anti-theft device is built into your car. Considering most new cars come equipped with a vehicle recovery system, this should be too big of a deal for most people.

Liberty Mutual

From what I have seen, Liberty Mutual offers the most significant discount for those withe a vehicle recovery system installed in their car. This discount can be up to 25%. The type of anti-theft system and where you live may make a difference. Not only will you save some money, but an anti-theft device may deter thieves from trying to steal it.

Nationwide

Nationwide auto insurance is by your side when they offer up to a 15% discount on your car insurance when you have a vehicle recovery system installed. Whether it is a kill switch or LoJack, rest assured that not only will your premiums be lower, but you will have the peace of mind in knowing your car is safe. The discount may vary based on device type. (For more information, read our “Does LoJack lower my car insurance?“).

USAA

USAA offers an anti-theft device discount of up to 25% for military members and their families. While this is one of many discounts offered to its members, you must be an active military member or a veteran for you or your family to benefit.

AAA

AAA does offer an anti-theft device discount on its auto insurance policies for its members. To find out the discount you may be eligible for, ou should contact AAA to see if your state and vehicle recovery system qualify. Remember, to be a AAA policyholder, you must be an AAA member. The membership is a nominal annual fee and worth the cost.

Progressive

Progressive auto insurance is another company with a great discount for having an anti-theft device installed in your car. You can get up to 20% off your premium. The only catch is it is not available in every state, and eligibility requirements also vary by the state where you live . Your discount may vary based on the type of anti-theft device you have installed. Contact your local Progressive agent or broker to see where you stand.

Mercury

While the company does not share the discount for a vehicle recovery system, Mercury Insurance will waive the comprehensive auto insurance deductible up to $1,000 if you have an anti-tracking device and the vehicle is either stolen and unrecovered or recovered with damage. This fee waiver is a huge savings in itself. The discount may vary based on the type of anti-theft device you have. (For more information, read our “Mercury Insurance Company of Illinois Car Insurance Review“).

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The Bottom Line on Vehicle Recovery Systems and Insurance

The anti-theft device discount offered by many auto insurance companies is an added bonus to your wallet. While all companies may not offer this discount in every state, many do. Research your state eligibility in the state where you live to find out what is available to you.

The discount you are eligible for varies by type of anti-theft device. Not only will you save on your insurance, but you may also prevent your car from being stolen. To be eligible, you must also have comprehensive coverage auto insurance.

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