Do anti-theft devices lower your insurance premiums?

If you have an anti-theft device installed in your car, you may be able to get a discount on car insurance. This is because having an anti-theft device can help reduce the risk of having your vehicle stolen. Car insurance companies often offer discounts to drivers who are considered to be low-risk. By installing various types of anti-theft devices, insurers will realize that the risk of theft decreases, so more expensive coverage will not be necessary.

A GPS device, specifically, can reduce your rates by 25 percent, according to Fox Business. Without comprehensive car insurance, you'll have to pay out of pocket to replace your stolen vehicle. While there is no standard discount rate that all insurers use, discounts are normally available from most insurance companies, between 5 and 30 percent, according to the Department of Motor Vehicles. Last but not least, one of the most famous anti-theft devices is the steering wheel lock.

According to Auto-Owners Insurance, other systems, such as deactivating devices, are more effective and can offer better results by discounting your insurance rates. Most insurance companies offer up to 25% off comprehensive coverage if you have at least one anti-theft device. Your car insurance isn't just based on your perceived risk, but also on what you do to prevent certain risks. While full-coverage car insurance is more expensive, it offers the most coverage for your vehicle.

While liability and collision coverage cover damage caused by an accident, comprehensive insurance pays for damages not related to an accident, such as theft, vandalism and fire. Anti-theft devices lower auto insurance rates because insurance companies are less likely to pay for a stolen vehicle. Drivers can save up to 25% with discounts for an anti-theft system in their cars, but most insurance companies offer a variety of discounts on auto insurance. A multi-policy discount is given to customers who bundle more than one type of policy with the same company, such as auto insurance and homeowners insurance, for example.

However, if your vehicle is stolen, you must have comprehensive coverage in your car insurance to pay for the replacement. Car insurance companies offer discounts on anti-theft devices, as they can prevent your car from being stolen.