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Auto Insurance Renewal Discounts
Car Insurance Renewal Discounts
When it comes to your car insurance, being a loyal customer can pay off big. Many companies offer auto insurance renewal discounts to thank long-time customers for keeping their car insurance policy with the same insurance company.
Customer Loyalty Equals Savings
Car insurance companies appreciate customers who stay with them. Because the insurance industry is so highly competitive, the rate at which customers switch providers is increasing rapidly.
Transferring to another company has never been easier with the prevalence of online databases that allow you to obtain multiple car insurance quotes by filling out one central form.
In order to prevent their customers from seeking out other companies and to keep those same customers happy, many auto insurance companies offer discounts to policyholders who renew their car insurance with them.
How Much Will I Save?
Your savings from auto insurance renewal discounts will vary according to:
- Your car insurance provider.
- How long you've been a customer.
The renewal discount will apply whether you've decided to purchase only the minimum liability coverage for your state or you have opted for a policy that includes higher limits or additional coverage types, such as comprehensive and collision.
Most companies offer car insurance renewal discounts as a percentage off your total premiums.
However, some car insurance renewal discounts may come in the form of a flat fee reduction. For example, a company could offer a renewal discount of $50 or $100 off your premiums as a customer loyalty reward.
Early Renewal Discounts
Depending on your car insurance company, you might find that you can save money just by renewing your policy early. This means not waiting until your policy's expiration date to renew.
In general, waiting to decide whether to renew or to switch to another auto insurance company can negatively affect you. If your car insurance coverage lapses and you are caught driving without the required insurance, you can face:
- Hefty fines.
- Suspension or revocation of your driver's license and any related reinstatement fees.
- SR-22 filing requirement.
- Jail time.
Instead of waiting until the last minute, it's a good idea to renew early. You can save yourself from the harsh consequences of a coverage lapse and may even save some money in the process.
Some insurance companies might take off as much as 5% from your premium just for signing your renewal early.
Other Discounts for Loyal Customers
While choosing to renew with your car insurance company is often a great way to save money, it isn't the only way to get cheaper car insurance.
Loyal customers can save money on their car insurance coverage by expanding how much insurance coverage they purchase through a single company. Many car insurance providers offer the following:
- Multi-car discounts – Many car insurance companies will provide as much as a 20% savings if you insure multiple vehicles on the same policy.
- Multi-policy discounts – You can often save quite a bit of money for choosing to bundle your car insurance with your homeowner's or renter's insurance.
For more information, please visit our Multi-Car/Multi-Policy Discounts page.
Most auto insurance companies have a listing of the types of discounts they offer on their company website. To make sure you're getting all the discounts you're entitled to, you can also meet with your insurance agent to review your current policy and discuss your whether you're coverage is meeting your needs.