Have you stuck with your car insurance company through thick and thin? Your insurer might reward you with a discount. In some cases, you might get a discount just for being with your company for an extended period of time. Other times, you can get a discount for using them for all of your insurance needs.
This article will teach you about how insurance companies can reward you for being a loyal customer. This includes a breakdown of the different types of customer 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 you may qualify for. These discounts will knock a percentage off of your monthly premiums. 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 for them by doing something that proves your loyalty to your insurance company. Then, 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 will also get you discounts. 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 will often give you a discount for having insurance for a continuous period. Generally, this discount applies to you if you’ve stuck with your insurer for a long time. The exact savings will depend on the insurer you work with. You may also see insurers call this the “long-time customer discount.” Some insurers, like Progressive, offer this discount even if you’ve been with another insurer for a long time.
To get this discount, you must show loyalty to insurers by sticking with one for a long time. Carriers may give you this discount even if you’ve been with another insurer for years and then recently switched over. Even though you may have just switched, your track record shows you’re loyal.
Having multiple cars on one policy can get you a discount. You may also see insurers call this the multi-vehicle discount. To get this discount, 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 insurer. For example, Progressive customers save about 4% on average.
Multi-policy discounts are part of insurers’ customer loyalty programs. You can get this discount by bundling your car insurance with another type of coverage. The most common bundle is home and auto insurance. If you’re going to buy insurance, you should be sure to speak with your agent about bundling.
Which Companies Offer Customer Loyalty Discounts
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 insurers who offer some sort of customer loyalty program:
Keep in mind that these aren’t the only companies that offer customer loyalty discounts. They’re just some of the major insurers that do. Some insurers 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 provider.
Customer 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 which insurer will offer you the best deal. It would also be wise to learn about your potential insurers’ loyalty and discount programs. You should go for the company that offers the best deal and good benefits.
Frequently Asked Questions
Q: Do car insurance companies have a customer loyalty discount?
A: Yes, auto insurance companies offer a discount for your loyalty. But they commonly offer more than one. You can usually get a discount for sticking with one insurer for an extended period of time. Insurers also offer multi-car and -policy discounts that reward you for being a loyal customer. Be sure to talk to your agent about your insurer’s customer loyalty programs. The exact savings will depend on your insurer.
Q: Is it worth it to stay with the same car insurance company 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 auto insurance quotes and reading up on each company’s loyalty programs.