Benefits of Staying With Your Auto Insurance Provider


You probably may have heard advice directly from auto insurance providers or perhaps seen tips on other insurance blogs on the significance of shopping around for quotes before making any insurance purchases. While this is a strongly recommended habit to enable you to have access to the best rates for your vehicle model, age and driving history, it’s not always the best option.  For some individuals, staying with the same auto insurance provider for a prolonged time has been the most practical and cost-efficient solution for their situations.

Outside the amount of money to be saved, the quality of the services rendered by auto insurance providers is what many people don’t really think about before eventually deciding to switch insurers. Simply because a vehicle insurance provider offers cheaper rates than your present insurance coverage doesn’t mean it’s a better policy. Before leaving your current insurer to a different one with lower rates, ensure you weigh the options. Staying with your present auto insurance provider can be a positive decision.


Bundling Discounts

Many insurance providers will offer you a discount if you bundle your vehicle with your life or home policies. For instance, Liberty Mutual, Allstate, Nationwide, State Farm and other insurance providers give discounts to people who buy multiple insurance coverages with them. If you’ve earned a discount as a result of bundled policies, you may prepare your mind to be offered higher quotes if you decide to switch insurance providers or forego a policy.


Accident Forgiveness

Accident forgiveness refers to a benefit in which clients do not need to pay additional rates for their first at-fault accidents. Dozens of insurance providers including Allstate and Nationwide, for instance, give accident forgiveness to their customers. Most discounts can only be redeemed after a period of 5-6 years of loyalty to the insurance company. Staying with your vehicle insurance provider could be beneficial if you’ve been with the same provider long enough to be eligible for this perk.


Renewal Discounts

A lot of insurance providers give discounts to clients that have been loyal to them for many years. Arbella, for instance, gives an extra 1% loyalty credit for each year you renew with them. Also, Ameriprise gives discounts to clients who have been their loyal customers for at least a period of three years. While some providers give discounts when you renew with them, most providers give more substantial discounts on other fronts.


Overall Loyalty

Having a better relationship with your insurer is one of the general incentives of staying with your current insurance company. A positive working relationship is created when you build trust with an agent. In the long-run, this trust you have built may help you; if you ever need to file a claim after an accident, this procedure could be more successful and easier when dealing with an agent you are very familiar with.

If your agent is familiar with your driving history and habits, the agent would be able to recommend the coverage most suitable for you. Familiarizing yourself with your insurer is a huge perk to staying loyal to your insurance provider.

You might want to shop around for car insurance quotes if you believe none of these benefits affect you directly at the moment. However, if these benefits are for you, then it’s recommended that you stay with your current provider, as it could be the best option, particularly if the quotes you are seeing are not significantly lower than your current rate.

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