Just last week, Ontario’s Finance Minister Charles Sousa suggested to Ontario drivers that they should shop around for car insurance to pay less. "You can find better rates because it’s a competitive system," he is reported as saying in the Toronto Sun. He’s right, and it’s true, but what about that loyalty discount you’ve earned? Won’t that save you more money in the long run?
Car Insurance Loyalty Discounts: Fact Or Fiction?
Actually, it’s both. Not all car insurance companies offer a loyalty discount, and for those insurers who do the discount will typically save you about five per cent. For some companies it’s a flat discount that is applied each year, while for others it’s a tiered discount meaning that as each year goes by you save a little more. Loyalty discounts can definitely mean lower car insurance rates, but it doesn’t mean that it’s the best rate you could be getting—it’s just the best rate your current car insurance provider can offer you.
Compare Quotes To Find The Best Car Insurance Rate: Fact Or Fiction?
Fact! Only by shopping around and comparing quotes will you know when you’ve got a great car insurance rate. That great rate might be from your current auto insurance provider, but it may not—there’s no way to know unless you shop around. And now is the time to compare, because rates are changing, and changing often.
It’s all part of the provincial government’s Auto Insurance Cost and Rate Reduction Strategy. The strategy, unveiled in August 2013, is expected to decrease the cost of auto insurance by an average of 15 per cent by August 2015. Since the strategy was announced, rates on average have dropped 5.44 per cent. It’s an ever-changing landscape—the world of auto insurance rates—which can be great news for consumers who take the time and shop around.
Does Shopping Around Affect Loyalty Discounts?
No. While you will lose your loyalty discount if you switch car insurance companies, there is no risk of losing your discount if all you’re doing is seeing who is offering what rates. There is no obligation, so you can compare rates whenever you like. This will give you a better idea of how your current rate stacks up in comparison with what is out there.
Compare Your Rates, See If You Could Save $700
On average, InsuranceHotline.com shoppers save up to $700 after shopping their car insurance rates. For most people, this savings is way more than the 5 per cent loyalty discount you may be getting for your current insurance provider. Compare quotes today.