Customer Loyalty vs. Shopping Around: What Saves You More on Auto Insurance in 2025?

Shopping around for auto insurance in 2025 generally saves you more than relying solely on customer loyalty discounts, though loyalty can still offer some value.

  • Loyalty discounts typically range from 5% to 20% of your premium, depending on the insurer and your state.

  • These discounts increase the longer you remain with the same company, and may be paired with perks like accident forgiveness or priority claims service.

  • Bundling multiple policies (auto, home, renters) can also yield savings of 5% to 25%, but this is often categorized separately from pure loyalty discounts.

  • Some insurers require several years of continuous coverage before granting the highest loyalty discounts.

  • Loyalty discounts do not guarantee the lowest rate. Insurers may still raise your base premium, sometimes offsetting the discount or even making your policy more expensive than competitors’ offers.

  • Practices like price optimization mean companies may charge loyal customers higher rates, knowing they are less likely to shop around.

  • Comparing quotes regularly can yield savings of 10%–30% or more, especially after rate hikes or life changes1112.

  • Many discounts—such as for good driving, low mileage, or bundling—are available to both new and existing customers, and switching providers doesn’t mean losing access to these savings.

  • In 2025’s competitive market, insurers are aggressively seeking new customers, often offering better rates to switchers than to long-term policyholders.

Approach Typical Savings Notes
Loyalty Discount 5%–20% May include non-monetary perks
Bundling 5%–25% Can be combined with loyalty, varies by company
Shopping Around 10%–30%+ Especially after rate hikes or life changes

  • Don’t rely solely on loyalty discounts for savings. They’re valuable, but not always the best deal.

  • Compare quotes at every renewal to ensure your rate remains competitive, even if you’re happy with your current insurer.

  •  Evaluate customer service, claims satisfaction, and coverage—not just price or loyalty perks.


Loyalty discounts can save you up to 20%, but shopping around almost always offers greater potential savings—especially in 2025’s high-premium, competitive market. Use loyalty rewards as a bonus, but don’t let them keep you from finding a better deal

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