Why You Should Think Twice Before Switching Auto Insurance Carriers

Many online publications claim that motorists can save on their auto insurance costs by switching carriers. According to some reports, you can save as much as 19% by switching. This may be true, but there are also many other benefits of staying loyal to one insurer. Here are some of the benefits you may enjoy by being loyal:

Loyalty Discounts

Your insurance carrier is interested in keeping you as a customer, which is why it gives you discounts on your premiums after some time. This is one of the methods they use to retain existing clients. As you would expect, the discounts vary by insurer.

Accident Forgiveness

Insurers set their premiums based on the riskiness of a motorist. Naturally, having an accident in your driving history is likely to increase your rates. However, some insurers have a program where they do not increase rates for a customer even after they have incurred an accident and made a claim; this is known as accident forgiveness. Some insurers award accident forgiveness to clients who have remained accident-free for a specific history, which rewards both safe driving and loyalty.

Vanishing Deductibles

When you incur damage, there is usually a set amount of money your policy requires you to pay upfront before it tops up the difference; this is known as the deductible. Some auto insurers reward their loyal customers by reducing their deductibles after some time. In some cases, the vanishing deductible may be awarded as a progressive drop until you will be paying a negligible deductible after a long time. However, you may be required to pay a small fee for the benefit.

The Chance to Bundle Coverage

Buying all your insurance policies from the same company is one of the best ways of reducing insurance costs. Most insurers offer discounts to customers who purchase multiple insurance coverages from them. It is easy to bundle your coverage by staying with one insurer for a long time. That way, you just buy your insurance from the same company each time you need coverage. However, if it is difficult to bundle you are coverage if you are constantly switching carriers since it may be inconveniencing to switch all your insurance needs.

In short, don't just assume that it is best to switch your auto insurer coverage after some time. Rather, analyze your unique circumstances as well as your insurer's policies before making a decision. Who knows, you might just find out that you are better off being loyal to the same insurer. To make sure you're getting the best deal, talk with a professional from a company like Green Light Auto Insurance Specialists.