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.
This article will teach you about how insurance companies reward you for being a loyal policyholder. This includes a breakdown of the different types of customer loyalty discounts. We’ll also list top insurers that reward long-time commitment. Finally, we’ll look at how sticking with one company can cost you money in the long run.
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How Customer Loyalty Discounts Work
While most states require car insurance, it can be pretty pricey. Fortunately, you can lower your rates by taking advantage of discounts, which knock a hefty percentage off of your monthly premium. You’ll most likely be able to qualify for more than one and maximize your savings.
A customer loyalty discount will save you the most. You qualify by doing something that proves your allegiance to a single car insurance company. When you do, you’ll end up paying less for your coverage.
Because there are various insurance company programs, your chances of qualifying are high. Having multiple cars and bundling your policies is another way to save. The more business you bring your provider the more they want to keep you.
Types of Customer Loyalty Discounts
Insurers reward their best, long-time policyholders with rich incentives and discounts. Providers love it when you add multiple assets to your policy portfolio. Many extend rich incentives to entice you to switch to them or bundle coverages.
Below is a list of common customer loyalty discount offerings from the major car 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 discount 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 Insurance 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.
Insurance Companies With Customer Loyalty Discounts
Almost all insurers reward loyal customers in some way. Some of them lower premiums by a significant amount to retain your business. Here’s a list of top car insurance companies that reduce rates for longtime policyholders:
- State Farm
- Travelers
- Progressive
- Allstate
- GEICO
- Farmers
- USAA
- Liberty Mutual
- American Family
- Amica
- Nationwide
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 discount works (if it offers one).
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.
Before deciding to stick with your insurer, you should assess the market from time to time. It’s a smart choice to gather quotes. Then, you can compare auto rates and see who will offer you the best deal. It would also be wise to learn how a potential provider treats loyal customers. You should go for the company that offers the best deal and good benefits.
Frequently Asked Questions
Do car insurance companies have a customer loyalty discount?
Every auto insurance company has a loyalty discount. 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 it to stay with the same car insurance company for a long time?
Insurers typically offer many benefits to customers who stick with them for a long time. But this doesn’t always mean that it’s in your best interest to stay with them. Car insurance providers change their prices over time. This is often not even because of your actions, but just to keep up with market conditions.
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.
