Loyalty Does Not Pay: Why You Must Switch Insurance Every 3 Years

My grandfather stayed with the same insurance company for 40 years. He thought that if he was loyal, they would treat him better. He thought he was getting a “Loyalty Discount.”

He was wrong. And if you’ve been with the same carrier for more than 3-5 years, you are probably overpaying too.

The Truth About “Price Creep”

Insurance companies love new customers. They will do anything to get you in the door, including giving you a dirt-cheap introductory rate.

But once you are a customer? They assume you are too lazy to leave.

Year 1: $800/year (Great deal!)
Year 2: $850/year (Inflation, right?)
Year 3: $950/year (Wait…)
Year 4: $1,100/year

This is called “Price Optimization.” Sophisticated algorithms analyze how likely you are to shop around. If the computer decides you are the type of person who just pays the bill without checking, they will slowly inch your rate up.

They punish loyalty, they reward shopping.

It sounds harsh, but the only way to reset this cycle is to force them to compete for your business again.

The 3-Year Strategy

You don’t need to check rates every month—that’s annoying. But put a reminder in your phone for every 3 years.

Go to a comparison site (or call a broker) and get 3 quotes. You don’t have to switch if the difference is only $20. But I often see clients save $500+ a year just by making a 15-minute phone call.

Pro Tip: Even if you like your current company, call them and say, “I just got a quote from Geico for $300 less.”

Suddenly, their computer might “find” a discount they forgot to apply to your account. Funny how that works, isn’t it?