Get a Customer Loyalty Discount

Some insurance companies offer customers a customer loyalty discount to reduce their auto insurance rates. This policy discount, sometimes also called a customer retention discount, is like a reward for sticking with your insurance company for a certain amount of time.

Insurance companies often provide various car insurance discounts for things like using anti-theft equipment in your vehicle, passing a defensive driving course, or maintaining a safe driving record. The customer loyalty discount is another easy way to save.

You may also receive this rate reduction for other types of coverage, such as homeowners insurance or renters insurance if you have these policies with the same insurer for an extended period. Your Acceptance agent can fill you in on all the details to help you save money on your auto coverage and all your insurance needs.

Discounts vary from one company to the next, but average savings are up to 11% off your premium.

Sticking with your carrier benefits both you and your insurance company. It’s easier for a company to keep a client rather than spend time (and money) looking for new ones — and easier for you to stick with one company rather than searching for a new one. Doing so helps you both save time and the task of filling out additional paperwork.

That said, shopping around is one of the best ways to save money on insurance. If you need to check other options, your Acceptance agent is happy to run the numbers for you across a wide variety of A+-rated carriers to find you a new one that fits your needs better.

Most insurers offer it when you renew your policy. Keep in mind you may only be able to take two or three discounts, so you’ll need to weigh if this is your best bet. There are ones that offer more savings you may want to use if you qualify, however, this may be a good one for you in your circumstances.

To learn if you qualify for this discount, you’ll need to find out how much time your insurance company requires you to stick with them to earn it. This requirement may vary from one company to another. Once you’ve been with your insurer for the required period, you become eligible to receive the rate reduction.

Who Does Not Qualify for a Customer Loyalty Discount?

If you’ve just signed up as a new customer, you do not yet qualify for this discount. You can, however, ask your agent to let you know when you become eligible.

If you were with an insurance company and left but signed on as a customer again later, you may not be eligible for this discount.

Some insurers place limits on how many discounts you can apply to your policy. If this is true of your insurer and you’re already receiving the maximum number allowed, you’ll want to see if this discount is higher than another one you’re already receiving. Then, you can potentially swap the lower discount category for the customer loyalty discount so you can get better savings.

Keep in mind that agents also consider your age, residence zip code, and how many miles you drive, among other factors, when figuring out your premium. If you have a history of accidents or an SR-22 requirement as a high-risk driver due to a DUI or multiple driving infractions, your rates will likely be higher than someone with a clean driving record. Be sure to ask your agent about all available discounts when providing your information.

Insurance companies value you and like to reward you for your loyalty in other ways as well, such as when you bundle your policies. Bundling means buying two or more policies with the same carrier. If you were to buy auto and homeowners coverage, for instance, you could save 10% to 25% off your policy.

There are other easy ways to save money, such as by insuring multiple vehicles with one carrier, which could save you between 10% and 25%. If you are a high school or college student with good grades, let your agent know, and you could save up to 25%. If you set up automatic monthly payments from your checking account, you can save up to 5%.

One more easy way to save is by increasing your deductible. This action would bring down your monthly payment and means you’d pay more up front if you file a claim. If your deductible was set at $1,000 and your claim was for $10,000, your insurer would pay $9,000.