Have you stuck with your car insurance company through thick and thin? If so, it might reward you for your loyalty. In some cases, you might get a discount just for being with your company for an extended period of time. Other times, you can save by using your insurer for all of your coverage needs.
This article will teach you about how insurance providers reward you for being a loyal customer. This includes a breakdown of the different types of loyalty discounts. We’ll also list top companies that offer discounts for customer loyalty. Finally, we’ll look at how sticking with one insurer can cost you even more money in the long run.
Find the best car insurance deal
Get better coverage, lower rates, or both by comparing quotes with our fast, easy-to-use form.
How Customer Loyalty Discounts Work
While most states require auto insurance, it can be pretty pricey. Fortunately, you can lower your rates by taking advantage of discounts. Insurance companies offer a wide range of discounts that knock a percentage off of your monthly premium. You’ll most likely be able to qualify for multiple discounts and maximize your savings.
Customer loyalty discounts work in the same way. You qualify by doing something that proves your loyalty. When you do, you’ll end up paying less for your auto coverage.
There isn’t just one customer loyalty discount. Having multiple cars and bundling your policies is another way to save. These are actions that many insurers consider to be part of customer loyalty.
Types of Customer Loyalty Discounts
An insurer’s customer loyalty program will usually have more than one discount. Some will reward you for how long you’ve been a customer. Others might lower your rates for buying more than one product. Here are the discounts that customer loyalty programs usually include:
Continuous Coverage Discount
Providers offer a discount when you have coverage with them for a continuous period. You generally need to be with the same insurer for a long time. The exact savings vary by company. 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 show loyalty to insurers by sticking with one 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 you’re loyal.
Having more than one vehicle on a single policy can get you a multi-car discount. You may also see insurers call this the multi-vehicle discount. To get it, you must have more than one car on your policy. You must keep each car at the same address as the one on your policy. Using an insurer to protect more than one car shows loyalty to them. The savings will depend on your iprovider. For example, Progressive customers save about 4% on average.
Multi-policy discounts are part of insurers’ customer loyalty programs. You can get them by bundling your car insurance with another type of qualifying coverage. For this reason, most people know this discount as bundling. And it’s very popular. Bundling can lower your rates as much as 30%. The most common bundle is home and auto insurance. If you’re shopping for coverage, be sure to speak with your agent about bundling.
Insurers That Reward Customer Loyalty
Almost all insurers offer some kind of customer loyalty program. They do this to reward customers and to retain them for the long term. Here’s a list of top providers who offer some sort of customer loyalty program:
- State Farm
- Liberty Mutual
- American Family
Keep in mind that just about every carrier offers some form of loyalty discount. Some providers only offer multi-car and -policy discounts. While others might have a continuous insurance discount. You should check with your agent about their customer loyalty programs and how they work. The savings and structure of the program will differ with each carrier.
Loyalty Could Also Cost You
Loyalty programs may be helpful to you, but they also can be a way for insurers 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.
Insurance companies 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 car insurance rates and see who will offer you the best deal. It would also be wise to learn about your potential providers’ loyalty and discount programs. You should go for the company that offers the best deal and good benefits.
Frequently Asked Questions
Q: Do insurance carriers have a customer loyalty discount?
A: All auto insurance companies offer loyalty discounts. Better yet, they commonly have more than one. But you can almost always get one for sticking with one insurer for a long time. Insurance providers also offer multi-car and -policy discounts that reward you for being a loyal customer. Be sure to talk to your agent about customer loyalty programs. The savings will depend on which company you settle on.
Q: Is it worth it to stay with the same insurance provider for a long time?
A: 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. Insurers 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 comparing quotes and reading up on each company’s loyalty programs.