Brand loyalty is one of the major factors in the world of sales and marketing. Read the article to understand about the pros and cons of car insurance brand loyalty discount.
Brand loyalty is one of the major factors in the world of sales and marketing. Brands today spend crores of rupees in offering quality products and services which help them maintain customer loyalty. The higher the number of loyal customers, the higher the satisfaction rate and revenue for the brand. Brands do make a lot of profit from loyal customers for which in return they offer customers brand loyalty discounts and offers. In the world of car insurance too, the case is not different. Loyal car insurance customers attract a host of benefits which have their own set of pros and cons.
What Is A Brand Loyalty Discount In Car Insurance?
Brand loyalty in car insurance refers to a situation where the customer keeps renewing the coverage from the same insurance company for many years. This type of customer is considered to be a regular customer who in return enjoys discounts on premiums, coupon codes, and a host of other benefits. These types of loyal discounts are provided to customers who keep renewing their policy with the same insurance company, without switching to any other insurer.
Pros Of Car Insurance Brand Loyalty Discount
Given below are the pros of car insurance brand loyalty discount:
Discount on premium
One of the amazing benefits of car insurance brand loyalty discount is that the customer gets to enjoy a discount on premium which translates to a less expensive premium. However, this is given only after consecutive years of renewal.
Insurance companies offer discounts on premiums in case the car owner does not claim during a policy year. For five continuous claim-free years, the discount can go up to 50%.
Discount on claims
In case the car owner raises frequent claims but is a long term customer of the insurance company, then the insurer does offer a discount on the premium that increases due to the increased number of claims.
Free value-added services
Services such as minor repairs, free towing, and free car check-ups are provided at no cost to loyal customers.
Cons Of Car Insurance Brand Loyalty Discount
Given below are the cons of car insurance brand loyalty discount:
While discounts on premiums can be of great benefit, it is important to check if the coverage offered is not being compromised. At the time of renewal, the insurer might adjust the coverage. Hence, it is crucial to check on the coverage and other policy terms and conditions.
Sticking to the same insurance company means missing out on the better services and improved rates being offered by other insurance companies. You may find that the other insurance company is offering improved coverage at the same price. Therefore, it is best to do some market research, compare car insurance online and opt for an insurer with better services.
Tips To Choose The Right Car Insurance
Given below are tips to keep in mind when choosing car insurance for your vehicle:
- Compare insurance
- Check on the coverage
- Check on the premium
- Read the terms and conditions of the policy
- Check for reviews and ratings online
- Check on the services provided
- Watch out for deductibles
Be it car insurance or any other product, each of it has its own set of pros and cons. It is best to do some research online. Ensure that you don’t take long as after the period of policy expiry, you won’t be eligible to get any coverage and may lose out on NCB benefits too.