Car insurance companies care about keeping their customers. To prevent you from straying, insurers offer several discounts, including ones that reward loyalty.
These loyalty discounts can be attractive. For instance, you might qualify for a discount on your car insurance in California if you have maintained a policy with State Farm for three or more years. Additionally, the discount amount may increase yearly for up to six years.
But should loyalty discounts be the main reason you stay with one company?
Industry professionals say no, pointing out that while these renewal discounts can be valuable, they should be considered in addition to your overall coverage needs, the price you pay for them and other available discounts.
- Some insurers offer loyalty discounts for long-term customers, but the discounts can differ significantly across companies.
- Staying with the same insurance provider for years doesn’t always guarantee the lowest rates. New policyholders may sometimes receive better rates than long-time policyholders.
- Exploring other discount opportunities, such as safe-driver, bundling or low-mileage discounts, may result in better savings than loyalty discounts.
Florida Car Insurance Rates by ZIP Code
Enter ZIP for average rate. Then enter Age, Gender and Coverage Level for customized rate.
Highest Rate
$129/mo.
Lowest Rate
$47/mo.
| MOST EXPENSIVE PER MONTH |
|---|
| 33012 - Hialeah: $128 |
| 33135 - Miami: $128 |
| 33013 - Hialeah: $128 |
| 33125 - Miami: $127 |
| LEAST EXPENSIVE PER MONTH |
|---|
| 32425 - Bonifay: $53 |
| 32440 - Graceville: $53 |
| 32431 - Cottondale: $53 |
| 32428 - Chipley: $53 |
CarInsurance.com commissioned Quadrant Information Services to provide a report of average auto insurance rates for a 2017 Honda Accord for nearly every ZIP code in the United States. We calculated rates using data for up to six large carriers. Averages for the default result are based monthly insurance for a male driver, age 30, for state minimum required liability coverage. Averages for customized rates are based on drivers' ages and gender for the following coverage levels: state minimum liability, liability of 50/100/50 and 100/300/100 with $500 deductible on comprehensive and collision. These hypothetical drivers have clean records and good credit. Average rates are for comparative purposes. Your own rate will depend on your personal factors and vehicle.
What is a car insurance loyalty discount and how does it work?
Insurance companies offer a car insurance loyalty discount to policyholders who stay with the same insurer for an extended period. The loyalty discount benefits long-term customers for their continued business and encourages them to remain with the company instead of switching to another insurer.
How it works
Insurance companies typically offer loyalty discounts based on how long you have maintained an insurance policy. Besides, the discount percentage might increase yearly if you renew your policy without switching to another carrier. Some insurers require you to maintain continuous coverage with them during that time.
The loyalty discount is often applied automatically when you renew your policy after meeting the necessary criteria. In some cases, you may need to request it from your insurer.
While it may save you money, it’s important to note that loyalty discounts don’t always guarantee the best rates. Insurance companies may raise premiums over time, so it’s always a good idea to compare rates to ensure you get the best deal.
How much can you save with a car insurance loyalty discount?
Depending on the insurer and how long you’ve been with them, you can save 4% to 11 % with a car insurance loyalty discount. Some companies offer higher discounts for long-term customers.
Which insurance companies offer car insurance loyalty discounts?
Many insurance companies offer car insurance loyalty discounts to reward long-term customers. Some of them are mentioned below.
| Company | Discount % |
|---|---|
| State Farm | 18% |
| Progressive | 3% |
| Nationwide | 4% |
| Geico | 3% |
| Allstate | 18% |
| USAA* | 5% |
Note: USAA only offers its services to military members, veterans and their families.
Regional car insurance companies
| Company | Discount % |
|---|---|
| Erie Insurance | 7% |
| Shelter Insurance | 5% |
| American Family | 5% |
| Iowa Farm bureau | 8% |
| Southern Farm Bureau | 5% |
| Auto Club Enterprises (AAA) | 8% |
| Amica | 7% |
| Frankenmuth Insurance | 10% |
| Auto Club Group – ACG (AAA) | 16% |
| Westfield Insurance | 5% |
| Western National Mutual | 6% |
| West Bend Insurance Company | 2% |
| Safeway Insurance | 17% |
| Safety Insurance | 10% |
| Pekin Insurance | 3% |
| Farmers Mutual of Nebraska | 8% |
| Donegal Insurance | 11% |
| Chubb | 2% |
| Virginia Farm Bureau | 4% |
| Vermont Mutual | 3% |
| UAIC | 5% |
| Union Mutual | 5% |
| TX Farm Bureau | 8% |
| Farm Bureau Insurance of Tennessee | 6% |
| Selective Insurance | 4% |
| Secura Insurance | 6% |
| Safe Auto Insurance | 3% |
| Quincy Mutual | 7% |
| Oregon Mutual Insurance | 3% |
| Oklahoma Farm Bureau | 6% |
| NYCM Insurance | 5% |
| Nodak Insurance | 4% |
| Mutual of Enumclaw | 3% |
| Missouri Farm Bureau | 7% |
| Mercury Insurance | 8% |
| Key Ins Co | 3% |
| Kemper | 13% |
| Island Insurance | 4% |
| Indiana Farmers Insurance | 13% |
| Indiana Farm Bureau | 10% |
| IMT Insurance | 5% |
| Home State Insurance | 10% |
| Germania Insurance | 7% |
| Idaho Farm Bureau | 8% |
| CSAA Insurance (AAA) | 7% |
| Central Insurance | 5% |
| American Access Casualty Co | 11% |
| Alfa Insurance | 2% |
| Acuity Insurance | 8% |
How much can I save by switching insurers?
Switching car insurance companies could save you a significant amount, though the exact amount varies based on several factors, including your driving history, vehicle type, coverage level and location. On average, you can save $1,571 a year if you switch to a new insurer, but this can vary depending on factors specific to you.
To maximize your savings, it’s a good idea to compare quotes from different insurers regularly and evaluate your policy yearly to ensure you’re not overpaying for coverage.
Price optimization: Are insurers charging you more for staying loyal?
If you decide to stay with your current insurer, you should understand a practice called “price optimization.” Insurers sometimes use this little-known technique to penalize loyal auto insurance policyholders by charging them higher rates because the insurer believes they are unlikely to shop around for a better price.
Some insurers try to predict who is less likely to switch companies by testing incremental price increases and then charging those customers more to squeeze out higher profits.
Thanks to the Consumer Federation of America (CFA) report, some state insurance regulators are reviewing the practice. Florida’s regulators have banned price optimization, while California and Ohio have issued warnings against it. New York and the National Association of Insurance Commissioners are investigating the tactic.
States that have banned price optimization
Price optimization, a practice where insurers adjust premiums based on factors unrelated to risk—such as a customer’s likelihood to shop around—has been banned in several U.S. states.
- Alaska
- California
- Colorado
- Connecticut
- Delaware
- District of Columbia
- Florida
- Indiana
- Maine
- Maryland
- Minnesota
- Missouri
- Montana
- Nevada
- Ohio
- Pennsylvania
- Rhode Island
- Vermont
- Virginia
- Washington State
Pros and cons of staying with your current insurer
Deciding whether to stay with your current insurer is an important decision that can impact your financial well-being and peace of mind. Below are some common pros and cons to consider when evaluating if continuing with your current insurer is your best choice.
Pros
- You’re already familiar with your insurer’s processes, customer service, and claims handling, making it easier to file or manage your policy.
- Many insurers offer discounts for long-term customers. Bundling multiple policies (such as auto and home) with the same provider could net a discount.
- Staying with the same insurer ensures continuous coverage without the risk of coverage gaps that can occur when switching.
Cons
- Your insurer may raise premiums over time without necessarily improving coverage or service.
- Other insurers might offer better online tools, mobile apps or digital resources that enhance your experience.
- By not exploring other options, you might miss out on significant savings or better coverage tailored to your current situation.
Benefits of shopping around
Shopping around for car insurance has many benefits that can help you get the best coverage tailored to your needs while saving you money — here’s why:
- Different insurance companies assess risk differently, leading to varying premium rates. You can compare prices and choose the most affordable option that meets your coverage requirements by getting multiple quotes.
- Regularly reviewing and comparing policies ensures you’re not stuck with higher premiums than necessary, especially as your circumstances change.
- Shopping around allows you to explore various coverage options and endorsements, ensuring you choose a policy that aligns with your needs.
- Insurers may offer better rates or additional benefits to win your business if they know you’re considering competitors.
- By evaluating different companies, you can assess factors like customer service quality, claims handling efficiency and overall reputation, ensuring you choose a reliable insurer.
Use our car insurance estimator to calculate your insurance costs quickly and easily
Percentage of customers who switch insurers annually
According to a 2023 survey conducted by CarInsurance.com, 49% of the 2,300 drivers surveyed nationwide switched their auto insurance carriers within the past 12 months.
57% of respondents experienced an increase in their auto insurance rates in the past year, with 32% facing rate hikes of 10% or more. 43% of those who switched attributed their decision to rising inflation affecting insurance costs.
Switching insurers might be wise if you face higher auto insurance rates. Exploring other insurers can help you find more competitive rates and better coverage tailored to your needs.
Going beyond loyalty discounts to save
Renewal discounts are just one of the car insurance discounts out there. There are several more — from those tied to safety features to bundling vehicle insurance with homeowners coverage. Here’s a rundown of what’s offered by most companies:
- Safe driver: A clean driving record for a certain number of years—typically three—may earn you a discount.
- Good student: Full-time students with a “B” average usually qualify for a good student discount.
- Driving classes: Young and older drivers who pass accredited courses can qualify. Many insurers accept online classes as well as those in the classroom.
- Low mileage: Discounts are usually available for those driving less than 10,000 miles a year, though insurers may vary the threshold.
- Anti-theft features: You’ll probably get a rate break if your vehicle has anti-theft or recovery devices.
- Safety features: Airbags and antilock brakes are among the safety features that will probably get you a discount.
- Multi-car: Lower premiums typically come if you have more than one vehicle on the policy.
Be aware that some insurers limit the discounts you get for certain coverages—your reduction total may be capped at a certain percentage, even if you qualify for all the discounts.
Again, ask your insurer; they should tell you if discounts are capped.
Final thoughts on loyalty discounts
Consumers should look beyond loyalty discounts and other discounts when buying insurance. Discounts are one thing, but you also need to consider customer service, consumer reviews, the company’s financial stability and, of course, price.
A loyalty discount for staying with your insurance company is nice, but it is just a discount — you shouldn’t stay with a car insurance company just because of it. If you’ve received bad customer service or believe you’re paying too much, go out there and shop for a new provider. By comparison shopping, you may find cheaper rates even without receiving a loyalty discount.
Resources & methodology
Sources
- Consumer Federation of America (CFA). “America’s Past Work on Price Optimization.” Accessed December 2024.
- State Farm. “Competitive California auto insurance discounts.” AccessedDecember 2024.
Methodology
CarInsurance.com editors in 2024 collected rates from Quadrant Information Services for a 40-year-old male driving a 2021 Honda Accord LX with a good insurance score and no violation on record for a full coverage insurance policy with limits 100/300/50 and $500 comprehensive and collision deductibles. We analyzed 2,677,890 records, 4,686 ZIP codes and 1,252 cities nationwide.
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Laura Longero
Executive Editor
Laura Longero is an insurance expert and Executive Editor at CarInsurance.com, where she specializes in helping consumers navigate the complexities of the financial and insurance industries. She has 15 years of experience educating people about finance and car insurance. Prior to joining CarInsurance.com, she worked as a reporter and editor at the USA Today Network. Her expertise provides readers with practical guidance, helping them make informed choices about their financial and insurance needs.
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John McCormick
Editorial Director
John is the editorial director for CarInsurance.com, Insurance.com and Insure.com. Before joining QuinStreet, John was a deputy editor at The Wall Street Journal and had been an editor and reporter at a number of other media outlets where he covered insurance, personal finance, and technology.
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Leslie Kasperowicz
Executive Editor
Leslie Kasperowicz is an insurance educator and content creation professional with nearly two decades of experience first directly in the insurance industry at Farmers Insurance and then as a writer, researcher, and educator for insurance shoppers writing for sites like ExpertInsuranceReviews.com and InsuranceHotline.com and managing content, now at CarInsurance.com.
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Nupur Gambhir
Managing Editor
Nupur Gambhir is a content editor and licensed life, health, and disability insurance expert. She has extensive experience bringing brands to life and has built award-nominated campaigns for travel and tech. Her insurance expertise has been featured in Bloomberg News, Forbes Advisor, CNET, Fortune, Slate, Real Simple, Lifehacker, The Financial Gym, and the end-of-life planning service.