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The Cost-Effective Choice: When Sticking with Your Current Auto Insurance Provider is a Smart Move

Picture of Becky Terhaar

If you’re familiar with the famous Geico line, “15 minutes could save you 15% or more” you understand that by switching to another insurance carrier you could save significant money. However, what’s not clear is that oftentimes those same 15 minutes spent on the phone with your current provider could save you just as much - if not more - than switching to a different carrier. 

Why? From loyalty credits to safe driving discounts, there are many ways to save on your existing policy:

  • Bundles: Combining your auto insurance with your home policy or any other P&C coverage you need under the same carrier, you will earn a bundle discount. The more properties you bring to a carrier, the steeper your savings will be.
  • Safe Driving Apps: Many carriers offer safe driving apps and will reward you with discounts for safe driving behaviors such as driving within the speed limit.
  • Loyalty Credits: Loyalty credits come in a couple of different forms. Some carriers will reward you with a discount for tenure with your prior insurance carrier where others will offer you a discount for your tenure with the current company - oftentimes for a period of 3-5 years.
  • Deductible Dividends: Some carriers will reimburse you in the form of deductible dividends if you maintain coverage without having any claims within a given period of time.
  • Donation Discounts: Making donations to organizations such as the Special Olympics could also earn you a discount with some carriers. If you actively donate to charitable organizations, it pays to ask.
  • Membership Discounts: AAA is probably one of the most well known membership organizations that may earn you a discount with your insurance carrier (or at very least be a positive factor in determining your eligibility for insurance.) However, there are other organizations that some carriers will honor as well. For example, one carrier in Massachusetts even awards a 5% discount for members of the Massachusetts Golf Association.
  • Pay in Advance: Paying for your policy in full upfront is another great way to save. Splitting up payments to a monthly billing cycle incurs additional administrative fees by the carrier which can be avoided by paying the entire premium in advance.
  • Occupational Discounts: Military discounts are a well known savings opportunity - but in addition, did you know that educators, accountants, medical professionals, police, engineers, and even lawyers can receive savings simply because of their occupation? 

Every insurance carrier is different, however it surely pays to have a conversation with your provider to see what opportunities are available for you to save. You may be surprised to find that staying with your current insurance carrier is more cost effective than switching to a new provider. Plus, with auto insurance rates expected to rise 8.4% in 2023, now is a great time to get started.