Auto Insurance Loyalty Programs

Looking for a way to lower the cost of car insurance? Consider participating in one of the loyalty programs being offered by the major car insurance companies. While these programs aren't new, many companies have added a new wrinkle. Loyal customers are now being offered discounts for having a good driving record and staying with their company for a number of years. Customers are even being offered cold, hard cash for referring friends and family members. It's enough to turn drivers into cheerleaders and recruiting agents for their insurance company.

Customer loyalty is important to car insurance companies who are receiving stiff competition from a growing number of new companies. Retaining old customers is a lot more cost-effective than finding new ones; so many insurance companies are offering their customers significant price breaks for their loyalty. This has led to a stampede of car insurance companies offering the customers discounts to stay in the fold. For many customers this is one of the best ways to save money on their car insurance. It has swayed many from doing their annual car insurance company switching ritual looking for better rates.

Qualifying for these discounts is easy. All the consumer has to do is keep their driving record relatively clean and stay with their current company. It's as easy as falling off a log. Don't know if your car insurance is one of those with a lucrative loyalty program and if so what it takes to qualify? A quick call to your agent or your car insurance company can get your questions answered and let you know if you can save more money on your car insurance by standing pat. Even if your insurance carrier hasn't done so in the past, they may have changed their policy to keep up with the competition.

The popularity of loyalty programs being offered by car insurance companies has grown exponentially as they have seen car dealerships and other businesses using small discounts to retain large numbers of customers. This has increased their revenue and even won them tons of new customers who are tired of being taken for granted. In the past staying with your car insurance company year after year has gotten customers nothing. The special deals and lower rates had been reserved for use in wooing new customers. Many customers angered by such perceived disrespect regularly changed car insurance companies.

But doing what's necessary to keep loyal customers happy has taken on a new urgency as car insurance companies have seen a growing number of long time customers heading for greener pastures. Paying special attention to loyal customers is a concept that is long overdue. Insurance companies have made millions on the strength of customer loyalty. It's a good sign that those insurance companies have begun to reward customers for their loyalty and their money over the years. This is particularly true of customers who rarely if ever make a claim. These customers deserve a break and more and more companies are now giving it to them.

Comparison-shopping is still one of the best ways to get a good price on car insurance. But smart car insurance companies are now making it worthwhile to stand pat. While switching car insurance companies may save you a few bucks, these new loyalty programs could end up saving long time customers a lot more. For car insurance companies it is a no-brainer. Taking care of the people who have stuck with you makes sense and dollars. It can also excite the customer base and put smiles on their faces. When those loyalty programs add incentives for customers who bring in other customers it can increase revenue dramatically.

The rising cost of car repair and replacement has led to increasing car insurance rates. For people with clean driving records this hardly seems fair. Many companies have now created incentive programs designed to keep these good customers in the fold. Several companies are offering increasingly large rebate checks to drivers who stay accident-free for 6 to 12 months or more. It's a small price to pay to keep a customer, who pays consistently and never costs the company any money, happy. Other companies increase the discount the longer the customer stays with them.

These discounts can more than offset rising car insurance rates. That makes it worthwhile for customers to remain loyal.