Insurance companies often like to build a relationship with their customers. This loyalty is often built by offering existing customers a potential discount on their car insurance policy if they choose to renew their policy with the same insurance company.
What Is a Renewal Discount when it comes to Home or Auto Insurance Policies?
One of the most common reasons given for not choosing to continue with a particular insurance company after a policy period is the ability to save money. An insurance company wants to build a customer following of loyal customers, but if the customers are constantly switching, this eliminates the company’s ability to create a loyal customer base.
In an effort to encourage customer loyalty, the insurance company will offer what is known as a renewal discount. This is a specialized pricing quote that includes a certain discount just for being a loyal customer and renewing an existing insurance policy.
How Are Renewal Discounts Offered to Insurance Policy Holders?
Most insurance companies will often notify an insurance policy holder that they are eligible to receive a renewal discount on their upcoming insurance policy. This offer is typically conveyed to the insurance holder via mail, phone, or email.
Sometimes a renewal discount is not automatically applied to the upcoming insurance policy. If this were to happen, the insurance policy holder can call their insurance representative or agent and inquire about a potential renewal discount.
Are Insurance Companies Required to Give Renewal Quotes?
There is no particular law in the state of Texas that requires a vendor/insurer to provide a renewal discount. Many insurance companies offer this type of incentive in an effort to compete with their competition in the insurance market, but it is not something that every insurance policy holder is entitled to receive upon renewal.
Even if an insurance policy holder qualifies for a renewal discount, it is a good idea to receive several insurance quotes online. People are able to receive both new and renewal auto insurance quotes online. These available quotes allow individuals to find the best insurance policy that fits their needs with the ability to compare prices and policy terms.