Car owners really love saving money and you can't blame them for that. With our current economy many households are counting their every dollar and exploring new ways to optimize their costs. From the auto insurance point of view this means that more time is spent on comprehensive comparison shopping both online and off line. Auto insurance quotes represent the best tool for doing comparison shopping effectively and allow car owners to get very competitive rates. However, all the provider switching and strive to find the better deal eliminates the possibility to benefit from a thing called loyalty.
You have probably heard a lot of recommendations for switching providers every now and then if you manage to find more competitive auto insurance quotes . Sure, in the short run switching providers makes perfect sense since you're constantly getting better rates and can switch to a better deal upon your renewal date. However, if looking from a longer perspective this strategy will usually lack the aspect of loyalty which makes perfect sense in the world of insurance. Loyalty means staying with the same provider for a prolonged period of time and getting a discount for doing so. Most insurance providers have such discounts, which are usually quite substantial and can provide a hefty cut in insurance costs for the loyal customer. Auto insurance companies love people who buy from them on a regular basis and for a long time that's why they reward such customers.
Now, the amount of loyalty discount may vary from company to company. And so does the period of time required for the customer to qualify for such a discount. With some companies you will have to keep the policy valid for at least three years while with other providers it may require to renew the same policy for five or more years.
Sure, it may seem like lacking logic to keep the same policy for so long, especially if the rates aren't as competitive as you would like them to be. But why not comparing auto insurance quotes first to get the best policy and then keeping it for a long period of time in order to qualify for the loyalty discount? Now that would make sense both in the short and the long run. Try to plan ahead a bit and you will realize that this auto insurance strategy will allow you to save quite a lot of money that your family budget would definitely benefit from.