Analysts say Sticking with Same Insurer Bad Idea


Despite all the hype drummed up by marketing gimmicks, it seems that staying loyal to the same auto insurance provider is not a guarantee of lower rates. Several industry experts are raising doubts over the effectiveness of staying with the same insurer for extended periods of time. In the past, they point out, customer loyalty still counted when it came to determining rates. With so many insurance companies now competing for the attention of car owners, loyalty may no longer be as important.

Analysts say Sticking with Same Insurer Bad IdeaExperts say that staying with the same provider can indeed have its own benefits. For one, policyholders can request special discounts or perks if they have remained loyal to their insurers for several years. Even so, analysts argue that the discounts often provided to loyal customers are never substantial enough to justify paying relatively high insurance premiums.

In fact, some specialists say that car owners can find better rates and premiums by looking for other insurers. The ongoing price war among providers is forcing many insurers to slash rates and offer substantial discounts. Some have even resorted to offering special promos to encourage motorists to switch insurers. This has prompted many car owners to consider changing providers even if they have remained loyal to the same insurers for several years.

With insurance premiums at its lowest level in more than a years, many policyholders often have the misconception that they can find good insurance coverage at lower prices. Some analysts point out, however, that the substantial price cuts come with risks. Insurance providers are known to skimp on some added options to make their offers cost-effective. As a result, motorists can be at risk of not receiving the full benefits of their insurance policies.

Loyal policyholders can also make good use of the tough completion to their advantage. Experts say that they need to be aware of their present insurers’ policies towards retaining clients with whom they have long-lasting relationships. Car owners can start comparing different insurance providers and use this as a bargaining chip to get their insurers to provide counter-offers. Most providers would offer lower premiums or better terms just to retain their clients. Of course, policyholders need to be prompt in their payments and have good, clean records with their insurers to get the best deals possible.

Some specialists believe that by staying put with the same insurer, policyholders can miss out on the many offers provided by other insurance firms. They explain that keeping all options open is the right way to get the best rates.