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Customer Loyalty & Your Car Insurance? It Could Cost You In the Long Run!

Customer loyalty is a dying trend. In the past, being loyal to a company typically resulted in better service, lower prices and cheaper car insurance. Boy, how things have changed!

Loyal Customers Pay 19% More for Auto Insurance

Loyal customers are now more likely to pay more on their auto insurance with each year they renew their policy with their current insurer. In fact, studies have shown that loyal customers pay as much as 19% more each year on their car insurance. That means that, by not shopping around each year for a new car insurance policy, you could be overspending by hundreds of dollars.

Graph – Getting Quotes From  the Same Insurance Company

This chart illustrates how a driver can get two or more quotes from one insurance company with a different price each time.

Note: Insurance quotes where for a 34 Y/O female with no prior traffic violations. Driving a 2014 Ford Focus. The State sampled was Florida

In this illustrative example the same 34 Y/O female received insurance quotes from the same company, but received two different rates from all companies.

2nd Illustration

This is a second chart illustrating different insurance companies quotes each time a driver gets one by the same company.

Note: The same 34 Y/O received different quotes from each of the insurance firms from the illustrative example above. One important reason why you should compare and ask for a different rate from the same company.

The Advantages of Comparing Auto Insurance Companies

Auto insurance companies like Geico, Progressive, and Allstate spend millions of dollars each year advertising the savings that insurance policy holders could save by switching companies.

The savings that they are offering to you as a new customer are very real. However, the truth is that you could enjoy those same savings, or even more simply by spending an hour each year searching for a better car insurance rate than you are currently paying.

Table – 34 Y/0 Female Insurance Quote Comparison by Top Insurers

Auto Insurance CompanyFirst Insurance QuoteSecond Insurance Quote
The Hartford$965$1,013
Allstate$989$963
Progressive$1,009$1,104
Farmers$892$1,003
USAA$914$996
Metlife$1,006$1,056
State Farm$1,231$1,165
Travelers$1,468$1,562
Mercury$1,621$1,543
Auto-Owners$1,572$1,642

Note: This is a table side by side comparison of the same 34 Y/O female driver above.

Insurers Offer Lower Rates to get You to Switch Companies

So ask yourself when was the last time you shopped around for a better car insurance rate than the one you are currently paying. If it’s been at least a year, then you’d benefit from seeing what kind of rates other companies are offering customers to entice them to switch. It’s almost guaranteed that you’ll find that you would pay a lower rate elsewhere.

This chart illustrates how switching insurers from Metlife to State Farm can save a driver on a premium.

Note: The insurance quote sampled was for a 43 Y/O male, married, with one child, no prior traffic violations, and driving a 2015 Toyota Camry. The State sampled was Georgia & minimum coverage. The savings found was 70 dollars by switching from company to another.

This is a second chart illustrating how switching from Allstate to GEICO can save a driver 89 dollar on a six month premium.

The same 43 Y/O Driver was sampled in the State of Georgia with Minimum Coverage. The savings found by switching auto insurance provider was 89 dollars.

Ask for a Lower Insurance Rate From Your Current Insurer

Even if you’re not interested in switching insurance companies, it pays off to at least pretend you are seriously considering it. After you do the research on the rates you could get by switching, contact your current car insurance policy and ask for a better rate.

If they don’t oblige, tell them you’ll walk – there’s a good chance they’ll come back with the lowered rate you asked for. If they don’t – well, then it’s time to jump ship.

If you’re looking to save money on car insurance, the last thing you should do is be loyal to your current insurance provider. 

Comparison of Insurance Quote by Major Cities

CityMinimum RateMaximum RateVariance in Dollars
Baltimore $1,425$3,568$2,143
Boston$941$2,145$1,204
Chicago$1,023$6,120$5,097
Columbus$1,197$3,108$1,911
Dallas$1,044 $2,352$1,308
Denver$1,080$3,552 $2,472
Detroit$2,172$12,675$10,503
Houston$984 $4,368 $3,384
Indianapolis$965$3,642$2,677
Las Vegas$1,241$3,264$2,023
Louisville$995 $4,128 $3,133
Memphis$1,068$5,006$3,938
Miami$1,142$6,002 $4,860
New York$1,334$5,687 $4,353
Portland$1,368$3,420$2,052
San Antonio$1,230$2,978$1,748
San Diego$1,488$2,965$1,477
San Francisco$1,224 $2,520$1,296
Seattle$864$2,368$1,504

Detroit had the biggest variance with 10,503 dollars, followed by Chicago, then Miami with $5,097 and $4,860 respectfully. The table above is to illustrate the importance of comparing auto insurance. There are providers which will quote you a higher price simply by where you live or the zip code you reside in. You are able to get quotes from different insurers and find a substantially lower rate.

Realize the more you get insurance quotes the higher your odds you will get a better rate. If you get ten or more quotes there is over 80% chance you will get a much cheaper quote.

Car Insurance Comparison of Different Aged Drivers

Company25 Y/O Female35 Y/O Male48 Y/O, Married Man
Travelers $2,243$1,383$691
State Farm$2,234$1,514$789
Esurance$1,978$1,678$812
Farmers$2,189$1,324$712
21st Century$2,345$1,583$743

Note: The State sampled in the table was Ohio.

It is Easier Than Ever to Switch Insurance Companies to Save

Insurance companies know that most consumers are afraid that changing insurance providers could prove to be too complicated, and more than a hassle than it’s worth. However, those consumer fears couldn’t be farther from the truth. It’s now easier than ever to switch companies without any loss in coverage.

It’s time you enjoyed some real savings on your auto insurance. Check to see what you could be paying if you switched companies and then go ahead and make the switch! Your bank account will thank you.

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Shaun Fyffe

Shaun Fyffe

Hi, I am Shaun Fyffe and writing is my passion. In my spare time I enjoy the outdoors, spending time with my family, sometimes I might go hiking or riding a bike, plus doing the regular hanging out - New York Style!

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