Often companies offer car insurance loyalty discounts after three years. They are usually around five percent. It is good to be appreciated and see small token of that appreciation. Probably they would have to spend a lot more in an attempt to win over others. The sad thing is that many of them give cheaper quotes to new applicants that can dwarf this little gesture, as they keep the existing customers in old rates.
This is something often assumed but hardly checked. The fact of the matter is that you could qualify for lower prices for many reasons, especially after a few years. Premiums should naturally come down as long as you keep a clean record but people may be mistaken this as getting auto insurance loyalty discounts, which are also available.
Some companies love to make a song and dance about a measly 5% price reduction and fail to mention that you don’t need to be with them several years to get it with some others because they offer the same for just switching to them todays.
Most things only make sense relatively to others. Many motorists may feel that they are being looked after because they are getting something called loyalty discount. But many of them don’t care about these gimmicks and look at the bottom line.
To do that you need to get a few quotes from other sources and compare them with the renewal terms. This would quickly tell you where you stand exactly. Who cares what it is called and how many percentage points it is when it doesn’t stand up to comparison.
It is important to remember asking for these automobile insurance discounts or checking if the premium is sufficiently coming down. If you keep getting improved renewal terms that means your business is appreciated. If you see the rates going up or staying the same even though you have not caused them any concern for years you should check with the agent.
With some companies you may need to ask for them as they prefer to keep quiet about them. When the customer asks they miraculously deliver them. This can be used as further leeway when they need to bring rates down to keep a customer. This would happen when the policyholder finds a better deal and would leave unless the quote is matched.
Remember you have options and you should take them independently. You should always shop around and look at the final figures. If you are getting a good deal from rivals you may be better off with them instead of worrying about the small details.
It is not hard to assess the offers you have as long as you keep the coverage offered in mind. It is all about numbers and knowing the math. Of course, it is important to be comfortable with the vehicle insurer in question. Still, you can find great policies in every sense.
It is worth repeating that the rates applied to you are going to make the difference. When they drop a five percent discount for being a loyal policyholder you may be compelled to stay with them. However, it may not be worth mentioning compared to more competitive deals in the market that come with great prices right from the start.