Car insurance loyalty discount: Here's how much you can save on car insurance

Drivers can potentially save up to 20% (or more) with a customer loyalty discount, but discounts for staying with the same company don’t always offset rate increases at renewal.

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Rachael BrennanSenior Editor & Licensed Auto Insurance ExpertRachael Brennan is a senior editor and a licensed auto insurance expert at Policygenius. Her work has also been featured in MoneyGeek, Clearsurance, Adweek, Boston Globe, The Ladders, and

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Car insurance companies typically offer some type of benefit to customers who renew their policies year after year, as a way of saying thank you for your loyalty — but the type of benefit they offer varies from one company to the next.

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Whether you earn a discount for having multiple policies with the same company or you save money (or even get added benefits) for staying with the same company for years, there are several ways you can save money as a loyal customer. 

But staying loyal to the same car insurance company for too long can sometimes cost you more money in the long run, so you should be sure to reshop every year or so to make sure you’re not paying more than you have to.

Key takeaways

  • A car insurance loyalty discount is a benefit that car insurance companies offer to reward customers for additional or repeat business.

  • Customer loyalty discounts can come in the form of money off your annual car insurance rates or access to extra perks. 

  • You could potentially save up to 20% or more with a customer loyalty discount, but remaining loyal to a car insurance company can also cost you money in the long run.

  • You should review your coverage and your insurance rates at every renewal period to make sure you are getting the coverage you need at a reasonable rate.

What is a car insurance loyalty discount?

A car insurance loyalty discount rewards customers for sticking with the same car insurance company. You may earn a loyalty discount for bundling multiple types of coverage through the same company, or renewing your policy each year instead of moving to a new insurance provider.

The different types of car insurance loyalty discounts include:

1. Discounts at renewal

Some car insurance companies offer discounts for customers who have been with the company for a certain amount of time, typically three years or more. Other companies offer a discount at every renewal as a thank you for staying with the company.

For example, Allstate offers a 10% discount at every renewal as a customer loyalty discount, and Amica offers a legacy discount for young adults whose parents have had an Amica policy for at least five years.

2. Bundling discounts

Almost every insurance company offers bundling discounts to reward customers who keep all of their insurance policies with the same provider. While it’s not typically called a “loyalty discount,” companies like to reward customers who give them multiple kinds of business.

Bundling your car insurance with your home, renters, or motorcycle coverage can typically save you anywhere from 5% to 25% on your insurance costs.

3. Added benefits and perks

While not exactly a discount, many insurance companies offer additional benefits for loyal customers instead of (or in addition to) lower prices. The most common benefit is first accident forgiveness, but each company is different. 

For example, Progressive offers small accident forgiveness (for accidents that cause less than $500 in damage) from day one of your policy, with a bump to the more substantial full first accident forgiveness benefit once you’ve been with the company for five years or more.

Car insurance loyalty discounts by company

Car insurance loyalty discounts can vary depending on the carrier. Below are some of the different types of customer loyalty discounts offered by top insurance companies.


Customer loyalty discount

Bundling discount


Offers a family discount of up to 10% if you were insured on a parent's USAA policy as a dependent for three years or more before buying your own policy.

USAA offers up to 10% off the cost of your property coverage when bundled with your auto policy.


Offers free accident forgiveness coverage to members who have reached an unspecified milestone anniversary.

Offers up to 25% discount for bundling coverages.

State Farm

State Farm may offer a discount at renewal if you maintain an accident-free record.

Offers up to 20% off for a multi-car policy with an additional 24% discount for bundling multiple policies.


Offers 10% discount at every renewal if you remain an Allstate customer.

Offers a discount of up to 25% if you bundle your home and auto policies.


Offers free accident forgiveness coverage for customers who have been with Progressive for five years or more.

Offers a 5% discount for bundling multiple policies and a 4% discount for insuring more than one vehicle.

How much can you save with a car insurance loyalty discount?

The amount you can save varies by company. Some companies offer discounts anywhere from 5% to 20% of your insurance premium, but some studies have shown that remaining loyal to an insurance company can cost you money because of a business practice known as price optimization.

What is price optimization?

Price optimization is a tool companies use to figure out exactly how much more you are willing to pay for a product. One of the ways this is applied in the insurance industry is to offer a discount so it doesn’t seem so bad when they raise your insurance rates. For example, a company may raise your rates 25% at your renewal, but offer a 10% customer loyalty discount so you feel good about only paying 15% more for your insurance premium.

How do I know if I should change insurance companies?

You should review your coverage and your insurance rates at every renewal period (every six or 12 months) to make sure you are getting the coverage you need at a reasonable rate. 

If you compare quotes from multiple companies and find one company is offering you a lower rate for the same coverage, you should consider switching insurance companies.

You should also reconsider your coverage whenever you have a major life change. If you buy a new house or a new car, get married, or move to a new place, you should get quotes from multiple companies to make sure you are getting the coverage you need at the best possible rate.

→ Learn more about how to switch car insurance companies

Frequently asked questions

If I’m a loyal customer, why would car insurance companies want to raise my rates?

Insurance companies raise rates for all sorts of reasons. If you’ve been in an accident or gotten a ticket since your last renewal, you should expect a rate increase. But,depending on the situation, even drivers with clean records may see an increase in their rates.

How do insurance companies build customer loyalty?

Insurance companies use a variety of benefits to build relationships with their customers, including customer loyalty discounts, claims-free and accident-free discounts, and bundling discounts.

Are there hidden auto insurance discounts?

There’s no such thing as a “hidden” car insurance discount, but that doesn’t mean you’re getting all the discounts you should be getting on your policy. Check with your agent to make sure you are getting every discount you can, including paid in full discounts, multi-car discounts, and good student discounts.

Why are my insurance quotes so high?

Insurance rates are based on a number of factors, including your age, ZIP code, driving history, and the type of car you drive. If your insurance rates are too high, using an online marketplace like Policygenius to compare quotes can help you save money on car insurance.