Should you stay loyal to a Car Insurance company?
Should I stay loyal to my insurance company?
We appreciate your business and as thanks for being a loyal customer all these years, but we’re going to overcharge you now.
This is how many Irish drivers feel upon receiving their car insurance renewal quotation.
Insurance premiums have risen by almost 40% in the last year, the highest rate of inflation in the last three years according to the CSO , resulting in an overall increase among all insurers. However the rise in instant online quotations and insurance brokers encourages consumers to be more savvy by shopping around each year. As monotonous as it may be, It’s always a good idea to shop around regularly as it lets you know where your current rate stands in comparison to the other rates.
Through shopping around many consumers have found that remaining loyal proves of little benefit to them. After looking around many consumers will find that their insurance company is undercutting themselves by a large margin. When queried few have an accepting answer for this. The reasonable answer is it being a ploy to woo and entice new consumers. They detail it as a once off special introductory rate for new customers while existing consumers watch their bills escalate overtime. If you don’t shop around and are unaware of the current rates you could be paying a penalty for being a loyal customer.
Not all companies abandon their existing customers and do reward loyalty. Many companies provide a loyalty discount on your overall bill or offer an incentive price to insure another item e.g house or personal belongings. A percentage is deducted as long as the policy remains intact and activate.
So Should you stay Loyal? Before you renew, do your research! Research will be the only way to prove whether remaining loyal is of true benefit to you or not.
Justin Kavanagh is a recognised leader in automotive intelligence and vehicle data supply to the entire motor industry. He has almost 20 years experience in building systems from the ground up. As the Managing Director of Vehicle Management System, he understands the need and importance of trustworthy and reliable vehicle history and advice to both the trade and the public.
Follow me on LinkedIn