If you own a motor vehicle and plan to drive it on our nation’s roadways, then you must have car insurance. It’s as simple as that. Luckily, insurance providers offer their customers a myriad of opportunities for saving money on their premiums every year.
Whether you’re bundling your home insurance with your auto policy, you’re a safe driver, or you are a student with an 4.0 GPA, there are plenty of ways you can reduce the costs of maintaining sufficient auto coverage.
One of the lesser known discounts available to drivers is the auto renewal discount and the best part about this money-saving option is that you pretty much don’t have to do anything to take advantage of it.
Explaining Auto Insurance Renewal Discounts
The whole purpose behind this type of discount is to keep existing customers as long-time policyholders. The best solution to accomplish that is to give customers a reason to stay, So they offer discounts as a way of saying “thank you” for renewing the policy once the term has completed.
This discount was devised by the insurers to fend off those discounts that companies offer to customers who are willing to switch their insurance from one insurer to another. The fact is, auto insurance premiums can fluctuate from one year to the next based on your driving record, age, and other determining factors.
So you may pay a certain amount for your insurance one year and then discover that another company is offering a policy to a driver with your statistics at a lower rate. Your insurance provider may be able to determine how much you might save if you switch, so they’re willing to spot you the difference between the two policies so you remain a customer.
OK so let’s say you’re interested in taking advantage of this discount with your insurance policy. First, find out if your current insurer offers such an incentive to renew when your policy year ends. If so, then you should determine what kind of discount they are offering.
Some insurance companies will give their clients a percentage of the premium, as much as 10% in some instances. Others may give you a flat fee as reimbursement. Once you are able to determine the amount of your discount, you can then decide how you wish to proceed.
For just about every insurer, the type of policy you own doesn’t have any bearing on whether or not you can receive the discount. If you are a paying client in good standing, you are most likely eligible to participate.
You may also have other options for getting that renewal discount. Some companies will urge you to renew early, before your policy expires.
This is a beneficial arrangement for both you and the insurance company because it not only ensures that your insurance doesn’t lapse but you get to put money back in your pocket sooner than later. For the insurance provider, they’ve secured yet another customer from switching to a competitor.
Should You Renew?
This is a question that every policyholder should ask themselves before they ultimately decide to stay with their current provider or go across the street. For starters, are you happy with your insurer? Have you filed any claims with them and was the process easy to complete or were there difficulties every step of the way?
When you need to contact customer service, what is that experience like? If you’re happy with the way your auto insurance provider has been treating you so far, then stick around and renew your policy for another year. If not, then maybe it’s time to shop around.
No discount is worth staying with an unreliable company that doesn’t provide you with the level of service that you expect. Perhaps you’re on the hunt for an insurance provider that meets your needs, look no further than Insurance Doctor car insurance.
What If Your Company Doesn’t Offer this Discount?
If you ask your insurer about this type of discount and they don’t offer it to their customers, it doesn’t hurt to negotiate with them to receive one anyway. Tell your provider that you have been doing some shopping for policies and you have a lower offer from another company.
Chances are your current provider will be ready to match that price in some capacity. After all, no company wants to lose business and if you are considered a model policyholder without any accidents or tickets and you always pay on time, you’re a customer they want to continue working with for the long-term.