The LED acts as a deterrent, so I guess if you didn't know anything about Contours you would think it might be an alarm system. So this might keep some thieves away, but usually if they want your car they are going to take it anyway, alarm or no alarm. The LED also serves as a key programming indicator and warning indicator in case your PATS system isn't working correctly. The only way past the PATS system would be a master key that the dealers have.
