Car Insurance Loyalty Reward Programs

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Here's what you need to know...

  • The national average for car insurance in the United States is around $1,400. Depending on the type of car insurance package a policyholder is enrolled in, the premium amount can be much more
  • Loyalty programs include percentage discounts off of car insurance premiums
  • Most loyalty programs are offered to customers after having been with the company for over three years
  • Several large insurance providers such as Geico and Progressive offer loyalty programs which provide extra discounts

Loyalty rewards programs offer perks to policyholders that have stayed with their car insurance provider for an extended period.

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How Loyalty Rewards Programs Work


One way to save money on car insurance premiums is with the loyalty rewards perks offered by many top rated car insurance providers. Today, many car insurance providers use the promise of loyalty rewards as a way to convince people to switch to their insurance company.

Most loyalty rewards programs start issuing discounts to their policyholders after they have been insured with the company between three and five years.

The car insurer might give a certain percentage discount to the policyholder the first year they become eligible and then a little more of a discount each year after that.

Companies That Offer Loyalty Rewards

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Progressive Insurance offers many types of loyalty rewards. Some of these loyalty rewards are issued to the policyholder as soon as they sign up with Progressive, and they earn even bigger rewards the longer they stay with Progressive.

Two of the loyalty rewards a policyholder is instantly given when they sign up with Progressive are unlimited small accident forgiveness and a pre-approved network of repair shops.

Unlimited small accident forgiveness allows for the policyholder to claim multiple small accidents without having to worry about their car insurance premium increasing.

The car repair shop network helps the policyholder to find a reliable and trustworthy place to send their car for repairs.

Some of the more significant loyalty rewards that a Progressive policyholder would earn the longer they stay with the company include the following:

  • Young driver discount
  • Large-accident forgiveness
  • Continuous coverage discount

Nationwide Insurance offers a percentage discount of up to 15 percent for loyal policyholders. At the national average of $1,400 annually, this discount can be a savings of as much as $220 annually.

Geico Insurance offers up to 30 percent off for its most loyal customers, which can add up to over $400 off of the policyholder’s car insurance premium each year.

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The Drawbacks of Loyalty Rewards

Even though loyalty rewards offer a discount to policyholders, they also encourage policyholders to become complacent about ensuring that they have the best car insurance coverage for their money.

Some people might think it is in their best interest to stay with the car insurance provider they have always been with just because they have earned these discounts.

In reality, there might be a car insurance provider that offers the same car insurance at an already lower rate that is equal to or less than their loyalty rewards rate with the current insurer.

Just because a person has always had the same car insurance provider does not mean that is the best insurer for their current needs.

Certain life changes can make a different insurer a better choice for the policyholder. Some of these life changes include:

  • Moving to a new state
  • Adding another person to their insurance policy
  • Getting a new car
  • Adding an additional vehicle to their policy

A person should evaluate his insurance needs every year or so to make sure that his current insurance provider is still the best choice.

When searching for the best car insurance provider, it is in the best interest of the policyholder to obtain as many insurance quotes as possible.

When talking to prospective insurers, the insurance premium should not be the only focus. It is also best to ask about any discounts available and how certain programs and discounts work in the long term.

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