If You're a Loyal Car Insurance Customer, You Might Be Paying Too Much

Companies make you think your loyalty pays, but thats not always true.

When it comes to your car insurance rate, your loyalty can actually work against you.

If you havent shopped around for insurance in a while, consider doing it now to avoid beingprice optimized.

They use that data to set your rate.

Only the insurance company knows the index.

Clients may see a loyalty discount on their premiums but Hunter says it may not be what it seems.

Theyll give you a discount for loyalty, Hunter says.

But, theyll give you a 10 percent discount after theyve raised your rate 25 percent.

For more detail on price optimization, check out NPRs full report at the link below.

Being A Loyal Auto Insurance Customer Can Cost You| NPR

Photo byMichael Sheehan.