UPDATED: Mar 13, 2020
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Auto insurance companies want to retain the customers they have. After all, setting up a new customer with a new auto insurance policy can be expensive. To prevent you from shopping around and moving on to greener pastures, car insurers will do their best to keep you happy. Thus, many auto insurance companies now offer customer loyalty discounts, to reward those customers who have stuck with their insurance company year in and year out.
Just how much these customer loyalty discounts can help you save, as it turns out, vary from company to company. One major auto insurance company claims that they will cut premium rates by upwards for fifteen percent for customers who have stayed loyal for over 5 years. Another insurer says that they will slash premiums down by more than thirty percent if they continually renew their policy. Most auto insurance companies in the United States, especially the ones you’ve heard of, offer similar customer loyalty programs.
The reason they have these programs is that the insurance industry is one of the most competitive industries in the world. The rate at which customers jump from company to company is always increasing. With the advent of the Internet and online auto insurance quotes, not being a “loyal customer” has never been easier. Insurers are always offering perks and discounts to try an lure customers over from their competitors. The way auto insurance companies combat this is by keeping their customers happy.
The Discounts Available For Loyal Customers
How much you can actually save with these loyalty discounts depends on two different things: who your auto insurance provider is and how long you’ve been with them.
In most cases, you will be eligible for these customer loyalty discounts no matter what type of policy you have. If you have the bare basic auto insurance policy or a full coverage policy, the discount will still apply. The auto insurance companies usually give the discount as a percentage off your total bill. Therefore, whether you are insuring your whole family or just yourself, as long as you are loyal, you could be due for a discount.
While insurance companies oftentimes deliver the discount as a percentage off of your total bill, often times the discount will be applied as a certain dollar amount off. Some companies offer $25, $50, $100 off your monthly premium simply for sticking with them over a long period of time.
Safe Driving Discount For Long-Term Clients
Another reward for customer loyalty is a safe driving discount. If you have maintained your auto insurance policy with your provider for long enough without any accidents or infractions, you will automatically start seeing savings.
For these “time and safety programs”, some auto insurance companies actually send annual rebate checks to their customers. Every year you are a customer and do not file any claims, these insurance companies will actually give you money back. What’s more – some of these annual rebates will actually increase in value for every additional year you maintain a safe driving record.
Other Ways To Save Money On Your Insurance As A Loyal Customer
When it comes time to renew your policy, the opportunity for savings on your premiums increases ten-fold. If you are a loyal customer, you might consider adding additional coverage with the same auto insurer. Insurance companies offer incredible discounts by simply adding additional cars to your car insurance policy or by adding different lines of insurance (homeowners, life, etc.) to your account.
For example, it is often times much more cost efficient to buy your auto insurance, your life insurance, and your homeowner’s insurance all from one single company than it is to spread them out among three separate companies. Using the same logic, it is also much more cost-efficient to insure your car and your spouse’s car under the same policy (as opposed to using two separate auto insurance companies to insure the two cars).
Final Thoughts On Getting Your Customer Loyalty Discount
As with every other auto insurance decision you make, it’s always recommended to do thorough research before making a purchase. A simple Google search can reveal a lot about which auto insurance companies offer which discounts. Most insurers list all their available discounts right on their company website, available for your viewing. Calling up your insurance agent or a representative at your insurance company can also clue you in on some of the additional discounts your insurer offers.
Generally speaking, however, car insurance customers stand to save lots of money if they simply stick with the same auto insurance company. As the years increase, so will your savings. Therefore, always think twice before making the switch to a new auto insurance provider. Their new customer savings may be enticing, but in the long term, customer loyalty is what brings you the big discounts!