The word “contract” usually makes people uneasy. Getting locked into a system or service with the only way out being to pay through the nose doesn’t sound like a good deal, and usually it isn’t. Thankfully, ADT doesn’t require a contract, although sometimes it’s in your best interest to sign one.
That might sound counterintuitive, but signing an ADT contract gives you some guarantees you wouldn’t otherwise receive. Plus, locking in the best home security system in the industry helps keep your home stays protected for the long haul. What’s included in ADT’s contract that can benefit you and are there drawbacks, though? We’ll go through all that and more based on our personal experience having an ADT system installed in our home for the past two years.
>> Learn About: A 2025 Guide to Securing & Protecting Your Home
Do You Need to Sign an ADT Contract?
We signed an ADT contract so we could get our system professionally installed.
Before we dive into the details of an ADT contract, it’s important to note they’re no longer necessary. You can buy an ADT security system without signing any contracts. Even better, they no longer require a monthly fee with their new self-monitoring option, and you can install the system yourself to save on installation fees.
There are still a few circumstances where an ADT contract is required, though. For example, if you:
- Finance Your Equipment: Without a contract, you’ll need to pay for all of your equipment upfront. Signing a contract lets you finance your equipment for up to five years, paying for it in monthly installments, pending a credit check.
- Take Advantage of Deals: Although not every deal requires a long-term contract, we have seen it in the past. Their deal at the time of writing included a free Nest Doorbell, and Nest Cam or Yale Smart Lock, did not require a long-term contract. However, we’ve seen a lot of special promotions in the past that require signing a three-year contract.
- Get Professional Installation: If you want professional installation, ADT requires a contract. We believe ADT’s professional security system installation is top notch, but if you’d rather not sign a contract, we tested ADT Self Setup and found it really easy to install.
So, should you sign a contract with ADT? We find signing a contract is well worth it if a deal requires it or if you plan to finance your equipment. Signing an ADT contract is relatively low risk for a few reasons we’ll explain later, but namely their option to opt out of your contract during a rate increase. We’d recommend avoiding a contract though if you rent your home or if you plan to move in the near future.
We certainly appreciate that ADT offers contract-free options now, but we’re not big fans of the fact that it still requires a contract if you want professional installation. We’ve tested security systems, such as SimpliSafe, that offer contract-free monitoring regardless of how the system is installed. So if you’re really looking to get professional installation but don’t want to sign a contract, check out our SimpliSafe hands-on review.
FYI: We tested ADT in our home and found their protection, home automation, and video package to be stellar. It had lots of smart home features, and the ADT Pulse — now called ADT Plus — app made it easy to control everything right from our phone.
How Much Does an ADT Contract Cost?
Even though we think ADT’s contract is fair and adds some protections for buyers too, there are still fees for breaking the contract. So make sure you can afford it for its entirety before you sign. There are two components that impact the price of your ADT contract, your monitoring plan and the equipment you choose.
Let’s start with monitoring. ADT offers three monitoring plans, and they charge different rates depending on whether you install your system yourself or have it professionally installed. Here’s a quick overview of how much you can expect to pay for a 36-month contract with ADT monitoring:
| Monitoring Plan | Secure (professional monitoring) | Smart (professional monitoring + smart home) | Complete (professional monitoring + smart home + video) |
|---|---|---|---|
| DIY Security Systems (no contract required) | $24.99 per month | $29.99 per month | $39.99 per month |
| Professionally Installed Security Systems (contract is required) | $34.99 per month | $39.99 per month | $49.99 per month |
Assuming you plan to finance your equipment, which we recommend if you’re signing a contract anyway to bring down the up-front costs, you’ll also need to pay for your equipment in monthly installments. Here’s how much you can expect to pay per month for each of ADT’s three main packages if financed over a standard 36-month contract:
| ADT Package | Security Starter | Outdoor Video | Front Door Protection |
|---|---|---|---|
| Total Price | $349.00 | $648.98 | $718.98 |
| Monthly Price | $9.69 | $18.03 | $19.97 |
Take note that some packages require a specific monitoring plan. Our ADT system includes security cameras, so ADT had us sign up for the top-tier monitoring plan, which is the only one that provides access to cloud video storage.
Our base monthly fee is around $80. It’s $49.99 for the “Complete” monitoring plan and around $30 per month for the Front Door Protection package with add-on sensors and additional security cameras. Once our contract is up and we’ve fully paid off the equipment, our ADT monthly bill will go down to $49.99 for just the monitoring plan.
>> Learn More: How Much Does a Home Security System Cost in 2025?
Did You Know? ADT’s Complete monitoring includes all of ADT’s home automation capabilities. It doesn’t stop at ADT’s features, though. ADT “Complete” also comes with a Nest Aware subscription which unlocks the full capabilities of the integrated Google Nest cameras and cloud storage for their recordings.
ADT Contract Length
The standard ADT contract is 36 months, unless you live in California, where it’s only 24 months. Once the initial contract period is up, you will automatically roll over into a month-to-month contract that you can end at any time without penalties provided you give the company at least 30 days’ notice. You can also sign a contract for up to 60 months if you want to finance equipment over a longer period.
Also worth noting is that there is a six-month, money-back guarantee on ADT security systems (just be sure to read the fine print). This means you’ll have plenty of time working with the system in your day-to-day routine to determine whether or not it’s right for you.
>> Read More: Ins and Outs of Home Security Contracts
Pro Tip: One of the pieces of fine print to watch out for with the six-month, money-back guarantee is the required Quality Service Plan (QSP) extended warranty, which also requires professional installation. The fee for the QSP varies based on the size of the system.
Drawbacks of ADT’s Contract
When we’re asked if we want the good news or bad news first, we always go with the bad news. So, that’s what we’re going to do here by starting with ADT’s contract terms you need to watch out for. They’re primarily in place to protect ADT and can end up costing you if you’re not careful.
Fees for Early Termination With ADT
If you decide you want to end your contract early, this is considered an early termination, and it will cost you. You won’t be on the hook for the balance of your contract, but you will have to pay 75 percent of what the remainder would be, due in full upon the termination date. That includes monitoring and equipment fees, which adds up quickly.
However, there are special offers for ending your contract early if you’re moving and will be setting up an ADT plan at your new home. Keep in mind there’s a clause for early termination when service charges are increased. (See “Options if ADT Increases Their Pricing” below.) Some extenuating circumstances also let you cancel your contract early without fees, such as getting re-stationed as an active-duty military member.
If you’re moving, heads up, ADT makes it really easy to take your system with you, meaning you won’t need to cancel the contract and pay to settle the account. With their DIY systems, you can just pack up your equipment and reinstall it in your new location after notifying them of your move. It’s not as easy with pro-installed systems as whether or not you can take your system with you depends on the generation of the system. ADT will have you leave older systems behind, but they offer great deals, such as a free security system, when moving.
FYI: One of our colleagues who had an older ADT system had to move, and he was offered a new security system at a discounted price for his new home. However, he had to sign a new 36-month contract.
Penalties for Missed Payments or Breach of Contract
Just like most contracts you sign, like a car lease or mortgage, if you miss payment or fail to honor the terms of your contract, ADT can stop providing service. If this happens, they can also charge interest on your missed payments, especially if you financed your equipment. After 90 days of failing to pay, they can report you to a consumer reporting agency, which impacts your credit score. They can repossess your equipment, too.
That might seem like a lot for a security system, but it’s typical of the industry and really any contract you sign. Just be sure you’re able to afford your system before signing a contract so you don’t get in over your head. ADT’s option to opt out due to price changes certainly makes that easier.
Benefits of ADT’s Contract
Now that we got the parts of the contract focused on protecting ADT, let’s talk about how you can use ADT’s contract to your advantage.
Options if ADT Increases Their Pricing
We will hand it to ADT here, if they increase their prices during your initial contract period, you have 30 days to object to the rate hike in writing. If ADT doesn’t adjust your price, you can terminate without a fee.
This is a great protection, and we’ve only seen a few services — home security or otherwise — offer this type of language in their contracts. It makes your monthly payments reliable so you don’t need to worry about ADT ruining your budget due to a price hike.
>> Read About: ADT Security Systems 2025 Packages, Plans, Cost & Pricing
We bought an ADT security system with Google Nest Cams so “Complete” monitoring was included in our contract.
Taking Ownership of Your ADT Equipment
If you bought your ADT system a few years ago and signed a contract, ADT typically owns your equipment until you complete your contract. When we bought our ADT system about a year ago, however, ADT gave us ownership of the equipment outright even though we financed it. That’s their new policy. It’s like when you take out a car loan. The car’s yours, but the bank can repossess your car if you fail to make your payments.
Theft Protection Guarantee
ADT will pay up to $500 of your homeowner’s insurance deductible if you’re the victim of a burglary while your ADT system is active. It’s the only home security provider we recommend offering this type of guarantee. It shows ADT is confident their system will keep your home safe — and that they're willing to put their money where their mouth is if they're wrong.
FYI: When you choose ADT, you're choosing 24/7 professional monitoring from the largest home security provider in the country. ADT ranks at the top of our list of best home security systems with monitoring.
Our ADT entry sensors blended in nicely with our white doors.
ADT Warranties
All ADT equipment comes with a limited warranty, but you have the option to extend it.
Limited Warranty
ADT’s equipment comes with a limited 12-month warranty that covers manufacturing defects. However, once you install the equipment, that warranty drops to 90 days from the date of installation. That goes for DIY and professional installation. We wish ADT did better here considering we got a three-year warranty when we reviewed Frontpoint. SimpliSafe offers a three-year warranty too. Even Vivint, which requires a contract like ADT, has a 120-day warranty. That said, ADT has an optional extended warranty, and they do offer an impressive six-month money-back guarantee that you don't get with other top companies. So there are trade-offs.
While your equipment is under warranty, ADT will repair or replace any defective part of the alarm system, including wiring, using new or functionally operative parts — at no cost to you. Although, if a technician needs to visit your home, you’ll get charged a flat rate of $99 and the limited warranty excludes battery replacement.
>> Check Out: Compare Home Security Companies
ADT’s Extended Warranty
ADT offers two extended warranties. There’s the Quality Service Plan (QSP) we mentioned earlier and then there’s the Comprehensive Product Protection Plan. We always recommend the QSP since it unlocks the six-month money-back guarantee. It’s also free for systems under $1,000 and never goes about $20 per month for systems up to $3,000. This covers labor and materials for repairing or replacing equipment that breaks, although ADT can charge $99 if a repair requires a technician to visit your home.
The Comprehensive Product Protection Plan includes the QSP but it extends the warranty to also cover any products you install yourself. This plan covers more types of damage too, such as accidental damage. It costs a bit more with rates starting at $10 per month, but we find it reasonable for a warranty that lasts as long as you pay for it.
Did You Know? You can resolve many issues you might experience with your ADT system on your own. Since it’s now a DIY system, troubleshooting ADT equipment has become easier.
Avoid Fees When Moving With ADT
If you’re an ADT customer who’s moving, there are some great discounts you can take advantage of. Check ADT’s website for the latest deals, or better yet, give them a call (at least 30 days before your move date, if possible). They’re going to want to do what they can to keep you in the ADT family.
ADT contracts are specific to the physical location where the alarm system is installed, so ADT will likely cancel your current contract (without early termination fees) and set you up with a new one at your new home. They’ll walk you through the whole process and discuss any options. If you bought a DIY system, you can usually take your system with you.
Final Thoughts: Is Signing Up with ADT Worth It?
Like we said at the beginning of the article, contracts can make people nervous. We understand, but after going through every word of this agreement with a fine-toothed comb, we can’t find any major red flags.
ADT offers a generous six-month money-back guarantee, which gives your home security investment some protection. By the time the terms of the contract are in full swing, you’ll know that ADT can protect your home. If you move, the service will go with you, and if your rates go up, you can back out from that as well.
So overall, yes, we will say that signing up with ADT is worth it. They’re one of the best home security providers out there, and the flexibility this contract offers is almost as good as the service itself.
FAQs
- Does ADT have any no-contract options?
ADT no longer requires a contract, but to avoid a contract, you’ll need to install your system on your own. You also won’t be able to finance the system through ADT, but you can still get financing through Affirm. This change put ADT on our list of the best no-contract security systems.
- How much is it to cancel my ADT contract?
If you want to cancel your contract ADT can charge you 75 percent of your total remaining monthly charges, due immediately upon termination (ouch). However, if you’ve completed your initial contract period and are now on a monthly renewal plan, or opted for a no-contract DIY system, you can cancel at any time with no termination fee. Just give ADT 30 days’ notice.
- What happens to my ADT contract if I move?
If you’re a current or former ADT customer and want to set up service at your new home, ADT has a mover’s package guarantee that includes a variety of deals for different situations. To qualify, you need to have been an ADT customer for at least two years, but it can include a full new system and discounted upgrades.
- Does my ADT contract renew automatically?
Yes, your ADT contract automatically renews, but not for the full initial term of two-to-three years. It renews as a monthly contract. You can end that monthly contract at any time without penalties by giving ADT at least 30 days’ notice.
- Do I need to sign a contract to finance my ADT system?
ADT now offers financing through Affirm. That means you can finance your DIY ADT system without signing a contract. This allows you to cancel your monitoring at any time and self-monitor your system if the monthly monitoring fee becomes too much.
