Does Loyalty Matter With Insurance Companies?

October 12, 2021

Do you shop for new insurance every year or every other year? You aren’t alone. This necessary, but often expensive cost, makes people want to find a cheaper alternative. But does loyalty ever play a role? Should you stick it out with the same insurance company in order to save money?

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Unfortunately, you probably won’t save money by staying with the same insurance company year after year. Insurance companies base their prices on hard data. Neither of you can do anything to change that, which usually means higher premiums.

But sometimes loyalty means more than worrying about the cost of the insurance.

Service May be Worth It

If you stay with the same insurance company for several years, you build a relationship with the insurance agent and/or company. When you build a relationship, what generally happens? You get better service. The agent will be more likely to help you if you are in a bind.

For example, let’s say that you missed a payment accidentally. A new insurance company that doesn’t know you might just cancel your policy. They believe you are a high risk so they don’t want to insure you any longer. An insurance company you’ve developed a relationship with over the years, however, may be willing to cut you a break. Knowing that you don’t normally make late payments, they may be willing to grant you an exception, and not cancel your policy.

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An insurance agent that knows you may also be able to help you with odd issues when you have to make a claim. Maybe you have a situation where the blame can fall on either party for the accident. The other party’s insurance company is trying to get you to take the blame. Your insurance agent will likely step up to the plate and help you in this situation. A new customer, that they don’t know though, may be left on his own to fight the battle.

Shopping Around for Insurance

Of course, if low premiums mean more to you than service, you may want to shop your insurance every so often. Some people religiously shop for insurance every year. They don’t want to pay the higher premiums that inevitably occur when you stick with the same company. Going to a new insurance company will help you get the lower rates because they are trying to entice you – they want to get you into the company in the hopes that you’ll become a loyal customer.

As you shop around, though, don’t forget to negotiate with your current insurance provider. There’s something to be said about loyalty. If you call your insurance agent and let him know that you may cancel because premiums increased, there may be some wiggle room for him, allowing you to secure lower premiums without changing insurance companies.

So does loyalty matter with insurance companies? It really does, as there are benefits that you realize by sticking with the same company, even if you end up paying a little more.

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