Sometimes, it pays to be a loyal customer. Airline miles, loyalty reward points, anniversary freebies, the coveted platinum membership tier — all of these incentives are designed to keep you committed to your favorite brands. But loyalty is typically a one-way street when it comes to car insurance.Sometimes, it pays to be a loyal customer.
Sometimes, price hikes are justified by your driving history . But other times, they’re based on things unrelated to driving, such as getting married or changing jobs. It’s worth noting that price optimization is currently banned in some states, and not every company practices it. Still, insurance companies adjust rates for many reasons. So while a low-priced policy may have initially lured you in, that sweet deal may have already soured by the time you renew .2. When life happens Insurance companies use all sorts of driving and non-driving-related signals to price policies, and pricing formulas differ from one company to the next.
As a result of that experience, you may be dissatisfied because a claim took too long to process or you could not reach a customer service representative when needed, for example. If an insurance company treats you poorly, it should serve as a big red flag, says DeLong. Other companies may value your business more.Keep the relationship open Shopping for insurance, like dating, can be a daunting experience for some.
Shop for what you need Start with figuring out what you need to insure and how much car insurance you need, Ellingsworth recommends.