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 reduce 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.