How Much of an Insurance Discount Do You Get for Having a Car Alarm?

Last Updated on December 14, 2025

If your car has an alarm (or other anti-theft tech), you might qualify for an auto insurance discount.

Many insurers offer discounts for anti-theft devices—especially systems that make your vehicle harder to steal or easier to recover. But the savings are often smaller than people expect because the discount usually applies only to the comprehensive coverage portion of your policy (the part that covers theft and break-ins).

So how much can you really save, what kinds of alarms qualify, and how do you make sure your insurer applies the discount correctly? Here’s what to know.

Key Takeaways

• Car alarm and anti-theft discounts usually apply only to the comprehensive portion of your policy (the part that covers theft and break-ins).
• Discounts vary widely by insurer and state—some drivers get no discount, while certain companies advertise savings that can reach double digits on comprehensive.
• Factory-installed immobilizers, smart keys, and recovery systems may qualify—even if you don’t see a separate “alarm discount” line item on your bill.
• The best way to maximize savings is to confirm your anti-theft features are listed correctly, then ask your insurer about all available vehicle equipment and security discounts.

How Much Is a Car Alarm Insurance Discount?

There’s no universal “car alarm discount.” Some insurers offer no discount, some offer small savings, and others offer larger discounts for certain devices or in certain states.

In general, anti-theft discounts are most commonly quoted as a percentage off the comprehensive portion of your premium—not your entire policy. For example, GEICO notes that a built-in anti-theft system can qualify for up to 23% off the comprehensive portion (availability varies by state and vehicle).

What does that mean in dollars? If your comprehensive premium is $200 per year and your insurer gives you 10% off comprehensive, you’d save about $20 per year. If your comprehensive premium is higher (common in high-theft areas), the savings can be bigger.

Bottom line: Many drivers see modest savings, but it’s still worth asking—especially if your vehicle has factory anti-theft, an immobilizer, or a tracking/recovery system.

Why the Discount Usually Applies Only to Comprehensive Coverage

Theft and break-ins are covered under comprehensive coverage, so insurers typically apply anti-theft discounts to comprehensive—not to liability or collision.

If you don’t carry comprehensive coverage (common on older, paid-off vehicles), you may not get any “anti-theft discount” at all—because there’s no comprehensive premium to discount.

Car Theft Is Still a Big Deal (Even With Better Factory Security)

Even with more factory immobilizers and improved security tech, vehicle theft is still common. The National Insurance Crime Bureau (NICB) reported U.S. vehicle thefts fell 17% in 2024 (dropping below 1 million for the first time since 2021)—but that’s still a lot of stolen vehicles and theft-related claims.

Types of Car Alarms and Anti-Theft Devices

Insurers don’t just look for a “loud alarm.” Many companies classify anti-theft protection into tiers. The more the system prevents theft or improves recovery, the more likely you are to qualify for a meaningful discount.

Passive Anti-Theft (Often Factory-Installed)

Passive systems work automatically. You don’t have to “turn them on.” Common examples include engine immobilizers, smart keys, and factory theft-deterrent systems that arm when you lock the car.

Active Audible Alarms

Active alarms are the classic “car alarm” many people think of: sensors detect unauthorized entry or impact and trigger a siren/horn. Some aftermarket alarms include add-ons like shock sensors, glass-break sensors, and tilt sensors.

Silent Alarms and App Alerts

Some modern systems can notify you by phone when the car is disturbed, even if the alarm sound is limited or delayed. These can be great for awareness, but whether they earn an insurance discount depends on the insurer.

Tracking, Recovery, and Remote Disable Systems

Recovery tech can improve the odds of getting your vehicle back quickly. Examples include services like OnStar, LoJack, and other remote shutdown or tracking systems. Insurers may treat these devices differently than a standard alarm, sometimes with a higher “recovery system” tier.

Common Car Alarm Sensors (What They Detect)

Car alarms typically rely on a mix of sensors. Not every vehicle has all of these, but the most common include:

• Door/trunk/hood sensors to detect entry
• Shock/impact sensors for bumps or glass impact (may trigger false alarms)
• Glass-break or microphone sensors that listen for certain frequencies
• Tilt sensors to detect towing or wheel theft attempts
• Proximity/perimeter sensors common on higher-end vehicles

Types of Anti-Theft Discounts Insurers Offer

Insurance companies may label discounts differently, but common categories include:

• Factory anti-theft / passive disabling discount (immobilizers, smart keys)
• Alarm / audible alarm discount (sound-only theft deterrent)
• Vehicle recovery / tracking discount (GPS-based recovery systems)
• Remote shutdown/engine disabling discount (where available/recognized)

Some insurers automatically detect factory systems from your vehicle’s VIN and build data—so you may not see a separate “car alarm discount” line item even if your vehicle is rated as having anti-theft protection.

How to Get the Discount (And Make Sure It’s Applied)

1. Confirm you have comprehensive coverage. If you don’t, ask whether anti-theft discounts apply to anything else (often they don’t).
2. Tell your insurer exactly what you have. “Factory alarm,” “engine immobilizer,” “tracking/recovery,” etc. If you’re not sure, check your window sticker, owner’s manual, or dealership paperwork.
3. Ask what proof is required. Some insurers just need the VIN; others may want receipts for aftermarket installations.
4. Check your declarations page. Make sure your policy reflects the correct anti-theft category. Errors happen, and fixing them can lower your premium.
5. Ask about other discounts you might be missing. If you’re calling anyway, review all available car insurance discounts and confirm any safety feature savings (including airbags).

FAQs on Car Alarm Insurance Discounts

Final Word: Car Alarm Insurance Discounts

If your vehicle has an alarm or anti-theft tech, you may qualify for a discount—but it’s usually applied only to comprehensive coverage and may be modest in dollars.

The biggest wins typically come from (1) making sure your insurer correctly lists your factory anti-theft features, and (2) comparing quotes if your current company doesn’t reward your vehicle’s security system.