Find a long-term relationship that gets better with age.
Find a long-term relationship that gets better with age.
Loyalty often pays when it comes to homeowner’s insurance. The longer you stay with most insurance providers, the lower your premium may become.
Ask your insurance agent what their long-term policy is. Then stick around for the savings.
Do relationships exist when it comes to business? Yes, they do exist, and I recommend you build a strong relationship with your insurance company. It takes commitment and loyalty for a business relationship to thrive. If both parties are happy and satisfied with the relationship they hold, this relationship might work for the long term. Meaning, a relationship is two-way traffic that requires both parties to give out to fuel the whole journey equally.
Insurance companies reward their loyal and committed clients because their value is part of their success. Nevertheless, since you have started receiving the benefits, it would not be easy to let go of a relationship with the insurance company. Hence, insurance has a long term insurance policy option for those clients who want to invest in a two-way traffic relationship.
Ask your insurance agency what their long-term policy is. Then stick around for the savings.
Insurance Customer Loyalty Programs
Insurance company loyalty benefits
Staying with an insurance provider for a long time might benefit you as follow:
⇨ You will save more because the longer you stay with a certain insurance company, the more likely it is that you will be able to receive a loyalty discount.
⇨ Some companies offer claim-free discounts, which will apply to you if you stay with your insurance company and retain your claim history minimal or to zero.
⇨ Since insurance companies care about your wellbeing, they will give you the best financial advice to help you have a good plan and achieve your financial goals.
⇨ Some insurance companies offer a customer loyalty program, giving loyalty points that are convertible to a product of cash exchange to the clients. This will help in covering for the monthly or annual premium rates.
⇨ They offer financial management advice for free to the clients. Who would want to employ a financial adviser when your insurance company can provide you with that service for free? Besides, this is how insurance companies assure their clients that they support them every step of their journey of prosperity.
⇨ They can offer excellent price competition to their loyal customers such as car and home insurance coverage for a particular period and many more.
Am I a loyal customer?
Most insurance companies will consider you their loyal customer after five years, but it varies with the individual insurance company. Therefore, it is good to confirm with your company first before concluding because they have terms and conditions that will boost your loyal customer status.
Think before switching insurances
Being loyal to your insurance has its ups and downs depending on its policy and the benefit you gain from the long-term relationship with them. It would be best to be cautious before deciding to switch insurance providers by researching the advantages and disadvantages of the two insurers.
For example, as previously mentioned, if you stay with your old insurance for a longer period, you can get a loyalty discount or even claim-free discounts if you remain claim free for a couple of years. However, it might be that the other insurance that you are considering offers way cheaper rates that would allow you to save more in the long run. So there is no wrong or right answer when deciding whether to stay with your old insurance or go for the new one. You just need to balance out the benefits of both providers and go with the one that better suits your needs.
Insurance loyalty pros & cons
Insurance cover serves a significant purpose to your future and those you care about. However, insuring with the same company comes with its merits and downsides.
⇨ You might get insurance forgiveness despite faults upon accidents, delayed payment, and many more because of the trust and claiming history (consult your insurance provider to see if they offer this service and to see who applies).
⇨ Being loyal to the same company unravels loyalty rewards and discounts towards your premium if you have never filed for a claim. (Consult with your insurance to see what is the minimum claim-free period that will grant you a discount)
⇨ Depending on the insurance company, you could also get frequent discount offers and bonuses, which will eventually decrease the premium rates charges, thereby saving you a lot of money.
⇨ You might miss many discounts and bonuses offered by a different insurer that are cost-effective in the long run if compared to your current insurer.
⇨ Sometimes the same insurance coverage might not cover enough to your satisfaction, hence the need for having multiple insurance companies.
⇨ Besides the bonuses, a different insurer might offer different unique services and wider varieties you can choose from, which your current insurer might not offer.
In summary, there is no right or wrong answer. Choosing the right insurance should be based on your priorities, and it is a personal choice. It comes down to what insurance provider suits you the best, and it is all about your personal preference. Being loyal to your current insurance provider might bring you perks such as discounts and loyalty rewards. However, switching to other insurers might also significantly help you save a lot of money in the long run if their variables and policy work to your advantage. In the end, you should be able to weigh the pros of staying with your current insurance against the new benefits of changing to a new one.