Now you must be thinking that how can a customer be loyal to a company/brand and what is a loyalty discount? Let us tell you.
Whether it is a daily use product like soap, shampoo, or a service like a consultancy or insurance, when a customer relies on any one particular product of any company and always purchase from the same brand/company then that customer is called a loyal customer hence brand loyalty.
Talking about the loyalty discount, when a buyer purchases a car insurance policy from a particular insurance company and keeps on renewing it for years then the insurance company considers that person as a regular customer. In return for their loyalty, the insurance company provides discounts on premiums, different offers like reduction of additional charges, coupon codes, or some kind of free service, etc.
The insurance company provides loyalty discounts to those customers who have renewed their policy for a certain number of years without switching to another insurance company. It means when you renew your insurance policy the company will provide you’re a special loyalty discount on your next policy tenure.
The loyalty discount does not come easy. To attain a loyalty discount the policyholder must renew the insurance policy for a specified number of years from the same insurer. Once you attain a loyalty discount, you can use it to apply a discount while paying for the renewal of your car insurance. So, how does it work you might assume. Here’s how it works.
Here are the pros of a loyalty discount on your car insurance.
The insurer can provide the policyholder with a discount on the premium rate of the policy for the consecutive year. This discount will reflect when the policyholder renews the insurance plan.
The insurer can also provide the policyholder with a discount on the deductibles. The deductible is the amount that is paid by the policyholder.
The insurers can have many value-added services like free repairing, free car check-up, free towing, etc. The insurer can provide you with any of such services for free.
The insurance company can offer a discount on the premium that has been increased. The premium amount of an insurance policy increases when the policyholder raise claims frequently.
There are several conditional cons of loyalty discounts. They are as follows:
When a policyholder wants to change the existing insurance plan but in order to get the loyalty discount to stay with the same plan then the policyholder will have to compromise with the coverage.
If the policyholder sticks to the same insurer to attain the loyalty discount and the policyholder does not explore other options that can offer better coverage.
Well, it is good to stay with the same insurance company for years and then attain the loyalty benefits but policyholders can miss out on several other deals. There are hundreds of car insurance plans available in the market and companies keep upgrading them in order to meet their customer's demands.
If you stay with the same company for years just to get a loyalty discount then you will lose the chance of attaining better coverage offered by other insurance companies. It requires exploration and when policyholder sticks with one for years and do not go for it then he/she misses out on better deals.
It is compulsory in India to purchase a third party insurance policy but this policy provides cover to the third-party liabilities. It becomes necessary to purchase another policy that provides cover to the policyholder. So, here are some tips to chose the right insurance plan.
It is recommended to purchase a comprehensive car insurance plan for every buyer. A comprehensive plan provides overall coverage to the policyholder. The better the coverage, the more satisfied policyholder would be.
You can check the customer's reviews towards the kind of coverage and services provided by the insurer online. It will let you know the customer’s experience during the policy tenure.
The insurer must provide quality services like towing facility, breakdown assistance, 24/7 customer care support, etc. These kinds of things can always come in handy to the policyholder during the policy tenure.
In this digital era, when everything is available online at your fingertips, it is best to purchase an insurance plan after comparing different plans online and also use the insurance premium calculator to check if a particular policy suits your budget.
Whether it is a product or service, there are pros and cons of everything. One can always take the help of the internet and check the insurance plans before purchasing. It depends on the policyholder if he/she wants to stick with the same insurance company for years to attain a loyalty discount or switch to another company’s plan.
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