Motorists can read too much into it and start worrying about things that are neither here nor there. They may think that they built a nice history with the current company for years and it will all be lost when they switch to another. They need to realize that motor vehicle records (MVR) are kept by department of motor vehicles (DMV) in each state and checkable anytime by interested parties. So, people should never lose sleep over disappearing no claim discount or clean license history. Any auto insurer you approach for a quote will be able to see them and price accordingly.
When you make the switch the new one would want to see some proof of clean coverage history in some cases. Once you submit it they will see that you didn’t cause any trouble for a few years. This will be recorded in the file. So, you are actually taking it with you as well. Besides, these are all checkable independently these days.
Second common worry is having an accident shortly after switching. They think that they have a long-standing relationship with current firms, which would see that they didn’t have any issue until now and are good drivers regardless of the latest crash. But the new one could view them as trouble due to one incident. The fact is that either of the vehicle insurance companies doesn’t look beyond what is in front of them in terms of incidents and deal with the claims the same way regardless.
People only deal with the work in hand and not look deeper. For example, an adjuster has 50 other cases to deal with and cannot care less how long you have been there. They look at damages, form and other evidences like police report and auto repair estimates to make a decision. Remember that most things in the insurance industry are moving to automation and away from dealing with customers in person these days. So, it will be more and more irrelevant how loyal you have been. Anyway, there is no evidence that it is considered at the moment.
Also, what would happen to rates after a claim with the new one? A good driver discount would be wiped away no matter how long you have been loyal unless you have Accident Forgiveness, which means next collision would be ignored.
Things change and people move on, it is part of life. It is unlikely that you will get a special treatment because you have been with the company so long. In the same way, you wouldn’t get an inferior treatment just because you are a new customer.