Staying With Your Car Insurance Company?

September 30, 2019 by Chris Bibey

So, you want to save money on car insurance?

Like many drivers, this may lead you to do one of two things (or both):

•    Alter your coverage
•    Shop around for a cheaper policy

Both of these decisions can have consequences. For example, if you redufce your coverage as a means of saving money, it could come back to haunt you in the event of a claim.

And in many cases, shopping around for a cheaper policy actually costs you more money in the long run.

Here’s an idea: stick with your current car insurance company as a way of saving money and easing stress.

Staying with your insurer can be beneficial. Consider the following:

1. Renewal Discount

Car insurance companies offer a variety of discounts, all of which are designed to save you money and keep you on board as a happy customer.

But many drivers miss out on a renewal discount (also known as a loyalty discount) because they jump from one insurer to another.

Simply put, the longer you stick with a company the greater chance there is of saving a substantial amount of money by way of a renewal discount.

Tip: if you’ve been with your insurer for many years and don’t have a loyalty discount on your policy, contact your agent or broker to learn more.

2. Coverage History

You do your best to protect against it, but it’s possible that you’ll face a dispute with your insurer at some point in the future.

For instance, if you file a claim and your insurer doesn’t want to pay out as much as you think you should receive, it’s nice to be able to fall back on a long history of working together.

Coverage history is helpful in the event of a dispute, as your agent or broker can review your policy dating back several years. This gives them a clear idea of what type of customer you are, which can lead to a resolution.

3. Easier to Ask for Help

There could come a time when you need help from your car insurance company. Your broker is able to more easily help with requests for accommodations if there’s a long, solid history.

Take for example these two drivers:

•    Driver A: policyholder for 10 years with no moving violations or at-fault accidents on their record
•    Driver B: policyholder for 1 year with two moving violations and one at-fault accident on their record

Which person is more likely to get what they want? That’s right, Driver A.

Along with customer loyalty, make it a habit to practice safe driving at all times. It’ll pay off over the years.  

Conclusion

Don’t believe the hype. Shopping around for a new car insurance policy just to save a few dollars is not always worth it in the end.

You’re more likely to save when you stick with your car insurance company. Not to mention the fact that it also allows you to establish a meaningful relationship with your insurer and broker.

FAQ's

Are renewal discounts common among insurance companies in Ontario?

Yes, they are common in this region. It’s a well-known fact that the insurance market is very competitive in Canada, and it includes the region of Ontario. So, these companies want their clients to keep purchasing insurance from them and discounts serve as a way to do it. If you want to renew your insurance, you should visit or call the insurance provider and talk about your alternatives. There’s a fairly high chance that you will get some kind of discount.

What are the pros and cons of shopping around for a new car insurance policy?

Shopping around for the best insurance deal is a good idea. The main advantage is that you will end up paying less money that way. With enough research, you can discover which companies are offering the best deals. Some even offer exclusive deals for clients who are requiring their services for the first time, so that’s another advantage. The only con of changing your insurance all the time is that you may end up looking only at prices and getting the services of a bad company if you are not careful.

What are the advantages of sticking to one car insurance company in the long run?

If you use one of the top insurance providers in your region, you may find some benefits in continuing to use its services. It’s no secret that several providers offer special plans or perks for long-term clients. You should visit or phone a representative of the insurance provider to see your options. If you engage in a conversation with your provider, you can talk about the possibilities and they will possibly give you some discounts.