Although not every car insurance company may offer loyalty discounts are available. In some cases they may be called something else or accounted within other discounts. Also, some companies lower the rates applied that brings the premiums down without making a fuss about showing the discounts given to you. In short, the bottom line is as important as getting a certain percentage discount.
Some companies offer loyalty discounts after three years and other after five years. These savings are usually around five percent. It is good to be appreciated and see small token of that appreciation. Probably a firm would have to spend a lot more than the small discount they offer to loyal customers in an attempt to win over new ones.
It is important to remember asking for these discounts or checking if your rates are sufficiently coming down. If you see drop in your renewal premium 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 your agent. Normally, you should see some discounts for every year that you stay claim free. These rate cuts will slow down or stop after three to five years.
With some companies you may need to ask for these discounts 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 their rates down to keep a customer. This would happen when the policyholder finds a better deal and would leave unless current insurer matches it.
Furthermore, it is important to look at the final premium asked. If a company is naturally fairly pricing their premiums you may be better off with them instead of getting small discounts for staying with the current one. Remember you have options and you should take them independently of which company you are with at the moment.
It is always sensible to get several car insurance quotes, stand back and consider your options objectively. Don’t let things like loyalty discounts affect your judgment. It is best to be with a competitive insurer than the one offer you loyalty discount. In no time you will be getting loyalty discounts from them as well. Adding this with their already low rates you will really have a winning combination.
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 your math. Of course it is important to be comfortable with the insurer in question. Still, you can find great rates, excellent coverage and one of the top insurers in the country.
It is worth repeating that the rates applied to you are going to make the serious difference. When a company offers you a five percent discount for being a loyal policyholder you may be compelled to stay with them but you should not be bothered with this at all. Seek the best option for your circumstances.