Continuous Insurance Discounts, Explained

The longer you stay with an insurance company, the more they reward you with a continuous coverage discount. But is the discount really worth it? Read this guide to learn more.
Written by Cheryl Knight
Reviewed by Carrie Adkins
Continuous coverage discounts reward customers who stick with their policy over time.
Many businesses, including
car insurance
companies, like to reward customer loyalty. For an insurance company, a consistent coverage history is a sure sign that a driver is a safer risk than someone who has spotty and fragmented coverage.
Most companies reward their customers for this by giving them a continuous coverage
. Before switching your insurance coverage, find out the benefits of sticking with the same car insurance company.
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Continuous coverage policies

Car insurance policies either run in six-month or 12-month periods, so you're covered for that entire time as long as you pay your premiums. When your policy runs up, you can either choose to renew it or cancel your policy and switch insurance carriers. If you choose to continue it, you will have continuous coverage with the same insurer.
And when you've been with the same
car insurance company
for a while, chances are the company you use for car insurance will give you some kind of discount for your years of loyalty.
This is in the form of a continuous coverage discount that can usually save you between 10% to 15%.

Who is eligible for a continuous coverage discount?

This discount is specific to who can claim it, and not just anybody on an insurance policy is eligible. See below for an explanation of policy eligibility and who gets the discount.
Primary Insured: When it comes to your insurance policy, the person who owns that policy is the one who receives the credit for years of loyalty. This also extends to the spouse of partner of the person who had the policy to begin with and is also considered a primary insured.
Young Drivers: If you have a
at home, then chances are you’ll add them to your insurance policy when they get a license. Even after they go off to college, your kids can remain on your car insurance.
Adult Drivers: Even an adult child or other adult family member who lives in your home can be on your policy. Most insurance companies actually require anyone living in your home to be listed on your car insurance if they have access to your vehicle.
When these adults get coverage of their own, they will be starting at zero in terms of continuous coverage. It is important that drivers get established with their own insurance policy as soon as they can. It can cause problems when trying to transition to a policy if they wait to do so until after a certain age.

Consider switching insurance companies

The main benefit of a continuous coverage discount is the money that it saves you. This still shouldn’t stop you from
shopping around
to see if you can find a better rate elsewhere.
A continuous coverage discount is good, but even with a discount, you could still save money by switching. Many experts recommend that drivers shop around for car insurance every three to five years. Some recommend doing so even sooner. This is because other car insurance companies will be willing to give you low rates to convince you to be their customer.
Unless you have other discounts through your car insurance company, such as a multi-policy or
bundling discount
, changing to a different company might be a great way to save money. In fact, switching car insurance can save you up to 40% or more, depending on your particular circumstances.
The best times to switch car insurance companies is when you get married, buy a new home, graduate college, or have other life changes. Most importantly, ask your current insurance company if they can match the deals you've found from other companies. Who knows? Maybe they will, which allows you to save and still keep your continuous coverage discount intact, too.
If you’re hesitant to switch plans or insurance providers because you’re worried about the work involved, don’t be.
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