Are Loyal Automobile Insurance Policyholders Treated Favorably?

Shopping and loyalty 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 regularly do special saving days for loyal customers as well. This notion makes us think that our loyalty will always be appreciated and rewarded by every industry. 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.

When you think about it, you are already with an insurer and as long as you say nothing you are considered to be a happy customer. Why should they offer you special dial when you are happy? But, they have to offer something special to customers of rival carriers so that they switch. So, the question is do you get loyal customer treatment from your insurer or is it time to switch?

Recent studies suggest that it is beneficial to change 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 with another insurer according to the finding of the Texas Office of Public Insurance Counsel. Their findings are indicating 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 the losses suffered on behalf of the company. It is not their concern to look after an established client.

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 their insurers. 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 alternative insurers and make the move.

Is this really true? Not a bit with online auto 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 people switch several times a year to save a little. And others may be happy to pay a little more and stay put. Couple of hundred dollars do not have the same value for everybody.

However, it is worth to mention that it is easier to find a great rate somewhere else when you have a clean driving license. Then, everybody would want you to join them.

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