Smart policyholders use this trick to slash insurance costs
What's the story
In the cutthroat world of insurance, there's one advantage that stands out for policyholders: loyalty discounts. These price breaks are a thank-you from companies for sticking with them. By knowing how to play the loyalty game, you can save big on premiums over the years. Read this article for tips on how to make the most of loyalty discounts on your insurance policies.
Policy details
Know your policy inside out
Each insurance policy has specific terms, including how you qualify for a loyalty discount. It's important to know your policy. Look for eligibility requirements, like how many years you need to be with the insurer and what actions you need to take, like making payments on time or maintaining a claim-free record. Understanding these terms helps you strategize for the biggest discounts.
Claim-free history
Maintain a clean record
A major factor for loyalty discounts is a claim-free history. Insurers incentivize customers who don't file claims over specified periods by offering premium reductions at renewal. For instance, if you go claim-free for three years, you may get a 5% discount on your next premium. This discount grows with each claim-free year, encouraging policyholders to refrain from filing unnecessary claims.
Policy bundling
Bundle your policies
The other potent method to tap into loyalty discounts is through bundling multiple policies with the same insurer. If you require more than one type of insurance, like car and home insurance, buying both from the same company can unlock extra savings. Insurers frequently provide appealing bundle offers, which come with loyalty perks, to motivate customers to bring all their policies under one roof.
Communication
Engage in continuous dialogue
Regular communication with your insurer can reveal unadvertised loyalty discounts. Be proactive! Negotiate for savings on your policy renewals due to your loyalty status at least annually. Insurance agents can provide customized offers or suggest actions to improve eligibility for loyalty discounts. This interaction can lower insurance premiums while maintaining comprehensive coverage.