What is a loyalty discount?

Insurance companies offer a loyalty discount to incentivize insureds to remain with them long term. Many insurance companies offer a discount if an insured has been with them for a significant period of time (time frames vary by company). Major companies like GEICO assert that a loyalty discount is available, but if you’re looking at coverage from a smaller company like Loyalty Underwriter, you’ll need to speak with the company directly to find out what loyalty discounts may be available.

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Tonya Sisler has a Bachelor’s Degree from the University of South Carolina in Journalism and has worked for 15+ years in management. She has also completed a proofreading certification and is currently a professional writer.

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Brad Larson has been in the insurance industry for more than a dozen years. He started out as a claims adjuster for a national carrier. He has since switched to the agency side of the business. Brad is licensed in all P&C lines.

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Reviewed by Brad Larsen
Licensed Auto Insurance Agent

UPDATED: Aug 26, 2021

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Things to Know

  • Insurance companies offer loyalty discounts to insureds who have been with the company for a significant amount of time
  • Not all insurance companies offer this discount, so you will need to check with your insurers to find out if it is available
  • Most insureds can save up to 7% on car insurance rates with a loyalty discount

One way to save money on your car insurance is with a loyalty discount. What is a loyalty discount? Which car insurance companies offer a loyalty discount as an incentive to their insureds? How much are average loyalty discount car insurance rates?

Take a few minutes to read this article to find the answers to your questions about loyalty discounts, the best loyalty discount car insurance company, how to qualify, and more.

Ready to buy loyalty discount car insurance? Use your ZIP code in the tool on this page to get your first free quote and start comparison shopping today.

What is a loyalty car insurance discount?

Many insurance companies reward customers for loyalty by reducing their premiums. To be eligible for a loyalty discount, you’ll need to be covered by the same insurance company for an extended period of time. However, the amount of time varies by insurance company.

The purpose of a loyalty discount is to incentivize customers to stay with the same company.

Not all insurance companies offer a loyalty discount, and those that do have differing requirements for application, so you’ll need to work with your insurance company to find out what’s available and whether you qualify.

Some companies may offer graduated loyalty discounts that increase over time the longer the company insures you.

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Where can you get a loyalty car insurance discount, and how much can you save?

Take a look at this table to see which major insurance companies offer a loyalty discount and how much you can save (for smaller, more local companies like Loyalty Underwriter, you’ll need to speak with the insurance company to find out what’s available).

Loyalty Discount Savings and Availability by Company
Insurance Companies Offers a Loyalty Discount Amount Saved with a Loyalty Discount
21st CenturyNo-
AAANo-
AllstateNo-
American FamilyYesNot Available
AmeripriseYesNot Available
AmicaYes5%
Country FinancialYesNot Available
EsuranceNo-
FarmersNo-
GEICOYesNot Available
Liberty MutualNo-
MetLifeYesNot Available
NationwideYes5%
ProgressiveYesNot Available
Safe AutoNo-
SafecoYes7%
State FarmNo-
The GeneralYesNot Available
The HanoverNo-
The HartfordYes5%
TravelersNo-
USAAYesNot Available
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One thing to note is that while a loyalty discount sounds great, it may or may not actually save you any money.

For example, many insurance companies offer a discount if you’ve been with the company long enough to qualify, but along with that discount may come a rate adjustment that is equal to or larger than the discount.

Car insurance discounts are a great way to save, but the quickest and best way to save is to compare loyalty discount car insurance quotes from multiple companies. You can do that right here by using the free tool on this page.

Loyalty Car Insurance Discount: The Bottom Line

Some insurance companies offer a loyalty discount to insureds who have been with them for an extended period of time. The amount of time necessary to qualify for a loyalty discount varies by company, but if you’re eligible, you can save up to 7% on your insurance rates.

However, it’s important to do your research to ensure you’re actually saving on your insurance rates with a loyalty discount.

Before you leave, start shopping for affordable loyalty discount car insurance by using your ZIP code in our tool to get your first free quote.

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