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Car Insurance

Do car insurance companies reward loyalty?

Although different providers offer different loyalty rewards to their customers, the most common one is a renewal discount. Find out discounts you could be missing on your policy.

To speak plainly, the car insurance industry wants to buy your love. The 21st century has seen a rise in online dating that even extends to your policy purchases. The availability and popularity of online quote comparison platforms has made it easier for drivers to compare their current provider to any other in their area, even ones they may have never heard of before. The sites allow drivers to explore a variety of features like discounts, coverages, and premium prices without having to favor a particular company or make a firm commitment. This newfound access and transparency between customers and carriers has driven the rate at which individuals switch providers through the roof. The auto insurance industry has never been so competitive and in order to combat this shift to brief “casual dating” between customers and carriers, incentives and discounts are being given to those drivers who remain loyal.

What is a renewal discount?

Although different providers offer different loyalty rewards to their customers, the most common one is known as a renewal discount. Auto insurance policies usually provide contracted coverage for six or twelve months. Therefore, when your policy is about to end you have the option to purchase another six to twelve month policy from your provider or to shop around for a new carrier. If you decide to stay with your current provider, you’ll most likely be offered a discount. You’re eligible for a renewal discount whether you have state minimum coverage or a much higher limit that includes additional add ons like comprehensive and collision. Renewal discounts can consist of anything from a percentage off your total premium or a flat fee reduction, like $100 off of your premium cost. How much you’ll end up saving from staying with your provider policy after policy depends your carrier and low long you’ve been a customer for that carrier. Customers can also receive a discount for renewing their policy before their expiration date. Known as an early renewal discount, some providers offer up to 10% off your current premium for signing up for a new policy in advance.

While early renewal is presented as a perk for loyal customers, it’s recommended that driver’s consider it a mandatory practice if they plan to stay with their current carrier. Driving without any insurance is illegal throughout the United States and is considered in the insurance industry as, “lapsed coverage.” Lapsed coverage comes with some serious consequences such as expensive fines, suspension or revocation of your license, SR-22 filing, points against your driving record, and even jail time. A poor driving record marks you as a high risk driver in the insurance industry and makes it very difficult to find affordable coverage or even a company to cover you once you decide to buy a policy again. Although there are car insurance carriers that cater to high risk drivers, it’d be much easier to be a responsible driver now than down the road.

Policy renewals aren’t the only way that carriers reward loyalty. They value quality as much as quantity. Insuring multiple vehicles and other assets like your home, boat, or motorcycle will unlock multi-car and multi-policy discounts. Many carriers offer up to a 20% reduction in premium costs for policyholders who insure more than one vehicle with them. And bundling your auto insurance with any other kind of coverage your provider offers will significantly reduce your premium.

It’s difficult to know whether or not you have the best possible deal on car insurance in your area. In this case, it may be worth to look around on a quote comparison site like Insurify.com. Insurify allows you to customize, build, compare, and purchase a policy online in minutes. And with the advice of professional agents every step of the way, you’ll no longer have to play the guessing game with how much you’re saving compared to your neighbors. However, if you think your current provider has great customer service and affordable coverage, you may want to consider making a serious commitment. Jumping around between providers can leave you undecided and possibly lapsed in coverage. Your commitment will be rewarded with discounts and other incentives.

Which car insurance carriers offer loyalty rewards?

It’s important to review your policy with your insurance agent annually to be sure you aren’t missing out on any possible discounts, loyalty related or not. However, we’ve provided quick run down of which carriers offer some kind of loyalty reward. Early signing refers to switching to that provider before your current policy with a different provider ends. Loyalty refers to staying with that company for a determined amount of time.

  • Allstate: Multi-policy, early-signing

  • American Family: Multi-policy, multi-vehicle, loyalty

  • Farmers: Multi-policy, multi-vehicle, loyalty

  • Geico: Multi-policy, multi-vehicle, loyalty

  • Liberty Mutual: Multi-policy, multi-vehicle

  • Nationwide: Multi-policy, multi-vehicle, loyalty

  • Progressive: Multi-policy, multi-vehicle, loyalty

  • State Farm: Multi-policy, multi-vehicle, loyalty

  • Travelers: Multi-policy, multi-vehicle

  • USAA: Multi-policy, multi-vehicle, loyalty