What Car Insurance Companies Offer the Best Loyalty Discounts?

If you're after a worthwhile loyalty discount, check out these insurance companies.
Written by Marisol Pereira
Reviewed by Carrie Adkins
When it comes to car insurance, having proper coverage at a good rate is good and all ... but rewards really sweeten the deal. The best car insurance companies know that, that's why they offer client discounts to keep them from switching to the competition.
There are many car insurance discounts you may qualify for, including plans rewarding good drivers, older drivers, and drivers that have taken defensive driving courses. However, one of the most common rewards offered by insurers is a loyalty discount.
But, what is a loyalty discount? And, more importantly, which insurers are offering the best ones?

What is a loyalty discount?

When it comes to car insurance, the term "loyalty" is used pretty broadly. A loyalty discount is a way for a business to reward a loyal customer by giving them a reduced rate. Often, loyalty rewards kick in after a customer has reached a certain benchmark with the company. Insurance companies may also offer loyalty discounts to clients that are threatening to find coverage elsewhere or who have chosen to bundle their car and home insurance or take out insurance on multiple vehicles.

Competitive loyalty discounts

Here are some of the best loyalty programs offered by car insurance providers.
Geico: Geico's loyalty discount saves customers an impressive
when they insure more than one car. They also offer a loyalty discount to clients that additionally insure their house, condo, or property under one of their bundle plans.
Nationwide: Nationwide offers a loyalty discount that saves customers roughly
annually when they bundle home and car insurance.
AAA: Not only does AAA offer fantastic cross-product discounts with various partners, they also offer a great loyalty discount. The longer you've been an AAA customer, the more your loyalty discount grows. The maximum amount of coverage you can qualify for is
. However, new customers are immediately eligible for a 3% discount.
Allstate: Allstate's loyalty discount is based on the number of policies purchased rather than the number of years you use their services. With Allstate, you can save
on auto insurance and 25% on home insurance when you bundle.
Progressive: Progressive offers various loyalty-based discounts. Their multi-policy discount allows you to save an average of 5% when you purchase two or more policies. Their multi-car discount lets you save an average of 12% when you have more than one car listed on your policy. However, they also have a more standard loyalty policy that offers insurance discounts depending on how long you've used their services.

Beware of price optimization

Not all loyalty discounts are as good as they seem. Some insurers use loyalty programs as a guise to actually increase your annual fees. These price increases are called "price optimization" and they are illegal in some states. If your plan is price optimized, your company may offer you a 20% loyalty discount and raise your premiums by 30%, leaving you paying 10% more than you did before you got the discount.
Loyalty programs are a great way to find big car insurance savings. If you do your research and shop around, you're bound to find a good deal.
Are you overpaying for car insurance?
Compare quotes and find out in 45 seconds.
Try Jerry

Easiest way to compare and buy car insurance

No long forms
No spam or unwanted phone calls
Quotes from top insurance companies
Find insurance savings