You’ve probably seen tips on other insurance blogs or heard advice through auto insurers directly about how important it is to shop around for quotes. While this is a strong practice to allow yourself access to the best rates for your car make, age, and driving history, it isn’t always the best idea. For some people, staying with the same auto insurer for an extended period of time has been the most cost-effective, practical solution for their circumstances.
What many people don’t think about when deciding to switch auto insurance companies is the quality of the services, not just the quantity of cash they’ll save. Just because a car insurance company is offering cheaper rates than your current insurance policy doesn’t mean it’s a better policy. Before you switch to a different insurance company that offers you a lower quote than the insurer you’re currently dealing with, make sure you weigh the options. Staying with your current car insurance company can be a positive decision.
Many insurance companies offer discounts to customers that have been loyal to them for several years. Arbella offers an additional 1% loyalty credit for every year you renew with them. Ameriprise offers discounts to customers that have been loyal to them for three years. While some insurance companies offer discounts when you renew with them, most companies offer more substantial discounts on other fronts.
A lot of insurance companies will give you a discount if you bundle your car insurance with your home or life insurance policies. Nationwide, Allstate, Liberty Mutual, State Farm, and other insurance companies offer discounts to people who purchase multiple insurance policies with them. If you have bundled policies and have earned a discount as a result, you may have to prepare yourself for higher rates if you decide to switch insurance companies or forego a policy.
Nationwide, Allstate, Travelers, and dozens of other insurance companies offer accident forgiveness to their clients. Accident forgiveness refers to a perk in which customers do not have to pay extra rates after their first at-fault accidents. Most accident forgiveness discounts can only be redeemed after 5 or 6 years of loyalty to the insurer. If you’ve been with the same company for long enough to qualify for this perk (or are close to this threshold), staying with your auto insurance company could be beneficial.
As a general benefit from staying with your auto insurance company, you’ll have a better relationship with your insurer. Building trust with an agent creates a positive working relationship. This trust may help you in the long run; if you ever need to file a claim after an accident, this process should be simpler and more successful if you are speaking with an agent you’re very familiar with. If your agent knows your driving habits and history well, he or she will be able to recommend the best coverage for you. Getting acquainted with your insurance company is a huge perk to staying loyal to your insurance company.
If you believe none of these benefits affect you directly right now, you might want to shop around for auto insurance quotes. If one of these perks applies to your current policy, sticking with your current company could be the best option, especially if the quotes you’re seeing aren’t significantly lower than your current rate.