Rewards are well utilized to keep customers coming back by many industries. Most grocery stores have loyalty cards and you can get discounts or use points later on. Some stores send coupons to regulars for holidays. This notion makes us think that our loyalty will always be appreciated and rewarded by every sector. Let’s see if it is the case in the automobile insurance industry.
On the other hand, we see many great packages from financial services companies. When we like to get the special offer, we are told that these products are for new customers. There are many examples of it from mortgage and credit card rates to insurance products. They like to sign up new customers and offer incentives to them.
The kicker is that you are likely to get a cheaper quote than your renewal if you enter exact same details in the online proposal form of the current carrier.
When you think about it, you are already with them and as long as you say nothing you are considered to be a happy. Why should they give you an improved dial when you are not complaining? But, they have to offer something special to customers of rival carriers so that they switch. So, the question is do you feel like you are treated fairly at the moment or is it time to switch?
Recent studies suggest that it is beneficial to change auto insurers every so often. If a policy holder is with the same company more than eight years they are likely to save around twenty percent by shopping around for quotes according to the findings of the Texas Office of Public Insurance Counsel.
It is certainly not the first study that come to this conclusion. A similar work was carried about by Progressive and their findings are pretty close. The results indicate that loyalty does not really pay as far as car insurance buyers concerned.
Then, do you get a better treatment when you have a claim? Unfortunately, this does not seem to be the case as well. Many loss adjusters do not even know how long you have been with the company when they are dealing with the claims. They are only dealing with so many cases that it is not their concern to look after an established client. Besides, they are often subcontracted to several of them.
What most policyholders think about it? It appears that they are happy to stay where they are for the sake of less work. People are not keen to change. Nearly two third of policyholders do not even shop around when the renewal time comes. Motorists still think that it is a complicated task to look through alternatives and make the move.
Is this really true? Not a bit with online vehicle insurance comparison sites. It takes only a few minutes to find out if you are being taken granted or given a great rate. At least you like to know the score. Then you can decide if it is worth your time to go somewhere else.
This is usually a personal preference issue. Some motorists switch several times a year to save a little. And others may be happy to spend a little more and stay put. Couple of hundred dollars do not have the same value for everybody.
However, it is worth mentioning that it is easier to find great rates somewhere else when you have a clean driving license. Then, everybody would want you to join them. If you have never made a claim they owe you loyalty because they have been the ones benefiting from this relation. All you have been doing is paying them regular premiums.