There can be a lot of benefits to being loyal to specific companies or brands. Extended loyalty can often reap some valuable rewards that can save you money or provide you with unique perks and rewards.
However, there are certain areas where being a loyal customer simply won’t pay off in a significant way; your car insurance is one of these areas. Below, we’ll look at why you shouldn’t be loyal to your car insurance.
Rates Don’t Change Often
You can stay with the same car insurance for years, have a clean driving record, and always pay your premiums on time, yet the chance of your premium costs going down significantly are slim to none. Your premiums are more likely to stay the same throughout or decrease very slightly. Unfortunately, most car insurance companies don’t make it a practice to give you the most competitive rates out there, and because of this, you should do yourself the favor of shopping around at least once a year to ensure you’re getting the best deal for your money.
Moving Can Increase Your Rates
Any change in your living situation can significantly impact your insurance costs. If you have moved recently or are planning to move, especially out of state, make it a point to check into what your new rates will be. You could find that your rates will increase significantly with your current carrier, even if you’ve been with them for a while. If you see this is the case, shop around and compare costs with other carriers; you may find rates comparable to those you have currently, or significantly lower ones.
Premiums Can Go Up with a New Car
A new car can change everything when it comes to auto insurance. If you are considering purchasing a new car, shop your coverage during the process. It’s possible that the vehicle you’re considering could raise your rates with your current insurer but go down with another. If you’ve already purchased the car, comparing prices with other insurance companies may still help save you money.
Your Driving Record
How your driving history looks can have a great deal to do with the insurance rates you pay, or it can have no impact at all. One speeding ticket on record can, unfortunately, raise your car insurance rates significantly with your current carrier, even if you’ve displayed responsible driving the rest of the time; the same can be said for accidents, including those that are not your fault. It can prove beneficial because of this to shop around with other companies. A new insurer can be a little more forgiving in rates that they offer you since they’re trying to obtain you as a customer.
On the same topic, if you carry a relatively clean driving record, don’t expect this to benefit you much with your current carrier. They may offer small discounts over time if you don’t accumulate tickets or get into accidents, but the discounts don’t often amount to anything significant. If you feel your insurance rates have become stagnant, it may be time to shop around with other carriers for a better rate that can reward your responsible driving.
There are laws that mandate what benefits and coverage car insurance carriers have to offer with different plan types; however, there are insurance companies that will provide more perks or benefits than others with their plans. Shopping around every once in a while to ensure you’re receiving maximum coverage perks can prove very beneficial. You may even find included coverage like pet insurance if they’re involved in an accident with you, or included roadside assistance