Is Auto Insurance Loyalty a Good Thing?

Every year, thousands of people assess their auto insurance coverage. Shopping around provides an opportunity for people to find a better rate. There are others who are satisfied with their coverage and opt to renew their policy. Insurance companies are excited to have loyal customers.

Most insurance companies reward customer loyalty through offering discounts and other perks. Companies may attempt to improve their customer loyalty program to prevent people from switching carriers. Perhaps you choose to keep your policy active each year because it is convenient. While you assess whether or not to renew your auto insurance in McKinney, TX, with the same carrier or move on, you have to weigh the strengths and weaknesses of practicing customer loyalty.

Here’s a closer look at whether staying with the same carrier is beneficial for you.

  • Customer Loyalty BenefitsInsurance companies develop customer rewards programs to retain their client base. You may notice a discount after you have stayed with your insurer for an extended period of time. The discount is based on reducing your rates in exchange for keeping the policy alive. You may qualify for a discount on every policy that you have purchased from the insurance company. Another reward insurance companies generally offer is lowering your policy deductible. This reward may depend on multiple variables, including the number of claims that you have filed in the past. If you have an extended safe driving record, you may qualify to have your entire deductible waived off. If you are involved in an accident, you will not have to worry about paying any money upfront if you file a claim.

    Your insurer may add a forgiveness feature to your insurance policy that protects your rates if you are involved in an at-fault accident. An accident forgiveness feature on your auto insurance in McKinney, TX policy incentivizes you to stay with your current carrier until the accident is no longer on your driving record. You cannot transfer your accident forgiveness feature to a new policy with another provider. If you are thinking about switching carriers, consider the potential costs of starting a new policy. There may be hidden fees involved that could put a strain on your finances.

  • Potential Customer Loyalty ConsPerhaps you enjoy staying with the same carrier because it provides a level of comfort. You may feel comfortable paying your current premium. However, there is a chance that you could be missing out on paying a lower premium and saving money. Shopping around to compare quotes is an asset you miss out on by renewing every year. It is recommended that you look over your policy every year to ensure that the coverages still align with your needs. Look for any discrepancies in your premium.

    It’s worth noting that many carriers make modifications to their insurance policies each year. There is a chance that you may not benefit from the changes. Increased competition in the marketplace has caused insurance companies to offer more discounts to attract clients. Perhaps another carrier offers a discount that can help you save more money than your current policy.

Consult With Pierce Insurance Group

It’s recommended that you assess your insurance needs every year to ensure that your current policy is still a good fit. While you may be comfortable with your current insurer, looking at an alternative quote is beneficial in most cases. If you have any questions, contact our team at Pierce Insurance Group, and we will guide you through the process.