What Is the Customer Loyalty Discount?

Customer loyalty discounts reward drivers with generous savings. Find out which insurance companies offer the best benefits for loyal and long-time policyholders.
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Have you stuck with your car insurance company through thick and thin? If so, it might reward you for your customer loyalty. In some cases, you might get a discount just for being with your provider for an extended period. Other times, you can save by using one insurer for all of your coverage needs.

In this article:

  • Loyalty programs for car insurance customers
  • Types of customer loyalty discounts
  • Insurers with discounts for loyal customers
  • How loyalty could also cost you
  • Frequently asked questions

Loyalty Programs for Car Insurance Customers

Customer loyalty discounts are the best way to lower your car insurance premium. You qualify by showing your allegiance to a single insurer. When you do, you’ll end up paying less for your policy.

Because many insurance companies have more than one loyalty program, your chances of qualifying are high. Having multiple cars and bundling your policies practically guarantees you significant savings. The more business you bring your provider the more they’ll want to it. That means more incentives for you.

Types of Customer Loyalty Discounts

Insurers reward their best customers and long-time policyholders with rich discounts. Insurance companies love it when you add multiple assets to your policy portfolio. Many extend rich incentives to entice you to switch to them or bundle policies.

Below is a list of common customer loyalty discounts offered by the nation’s major insurance companies:

Continuous Coverage

Insurers offer a reward when you have car insurance with them for a continuous period. You generally need to be with the same company for a long time. The exact savings vary by provider. You may also see it called the “long-time customer discount.” Some carriers, like Progressive, offer this bonus even if you’ve been with another company for a long time.

To get it, you must stick with with one insurer for a long time. You can also get this discount if you’ve been with another company for years and then recently switched over. Even though you may have just switched, your track record shows your dependability.

Multi-Car and Multi-Vehicle

Having more than one vehicle on a single policy can get you a multi-vehicle or multi-car discount. To get it, you must have multiple cars parked at the same address on your auto insurance policy. Using one company to protect several vehicles indicates how much trust you put in them. The savings will depend on your provider. For example, Progressive customers save about 4% on average.

Bundling and Multi-Policy

The multi-policy discount is part of every insurer’s customer loyalty program. It’s a package deal where you get a break when you bundle multiple coverages with a single company. Bundling can lower your rates by as much as 30%. The most common bundle is home and auto insurance. If you’re shopping for a new provider, be sure to ask your agent about combining your policies.

Insurers With Discounts for Loyal Customers

Almost all insurers reward loyal customers in some way and show their appreciation by lowering your car insurance premium to retain your business. The savings can be significant depending on your provider. Here’s a list of top companies with customer retention discounts for longtime policyholders:

Keep in mind that even if you don’t see your insurer listed above, it doesn’t mean you’re out of luck. Just about every provider rewards loyal policyholders. However, the savings and structure will differ with each carrier. Some only offer multi-car and multi-policy discounts, while others might offer savings for continuous coverage. We recommend checking with your agent to see how your insurance company’s loyalty program works (if it offers one).

How Loyalty Could Also Cost You

These programs may be helpful to you, but they also can be a way for insurance companies to keep your business and nothing else. When you stay with the same insurer, your rates could randomly go up at any point in time. This is often not even because of something you did.

Auto insurance providers use a process called price optimization to set people’s rates. Price optimization is where insurers tweak everybody’s rates in certain areas to profit more. These rises in your rates happen over time and are usually very small. Enough for you to possibly not even notice. Your rates can also increase because people are filing more claims in your area.

Frequently Asked Questions

Do car insurance companies reward customer loyalty?

Every car insurance company offers at least one discount for customer loyalty. Better yet, they commonly have more than one. But you can almost always save money by sticking with one insurer for a long time. Providers also offer savings for multi-car and multi-policy families. Be sure to talk to your agent about these programs. The savings will depend on which company you settle on.

Is it worth staying with the same insurer for a long time?

Car insurance providers typically offer discounts to long-term customers through customer retention programs. But this doesn’t always mean that it’s in your best interest to stay with them. Insurers change their prices over time. This is often not even because of your actions, but just to keep up with market conditions. Price optimization can also result in a premium increase.

You don’t need to settle with what you have if it’s costing you money. Before you stay with the same insurer, you should make sure you’re getting the best deal. You can do this by occasionally doing a comparison of what each company offers loyal customers.


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