[ACCESSWIRE]
Insurance Panda has Just Released a New Article that Takes a Close Look at this Phenomenon
NEW YORK, NY / ACCESSWIRE / July 23, 2015 / Insurance Panda, one of the top providers of free auto insurance quotes in the United States, has just released an interesting article that shows how car insurance companies can raise the rates on their long-standing customers.
The new article, http://www.insurancepanda.com/3184/customer-loyalty-car-insurance/, is titled "Does It Pay To Be A Loyal Car Insurance Customer?" As the thought-provoking article points out, while other industries reward their long-standing customers with a variety of perks, auto insurance companies often show their appreciation with higher rates.
As the article explains, this phenomenon is typically caused by something called price optimization. For example, a customer might get a good rate from their car insurance company that includes a multi-car discount. After paying this rate for months or even years, it might suddenly jump by a significant amount.
"Even if a driver has no history of bad driving and no accidents, the rates can still increase without warning,' the article said, adding that the insurance company will often try to offset the sting of the rate increase by offering the customer a discount for "loyalty."
"But the discount might be 5 to 10 percent while the increase in rate is closer to 25 percent."
When determining how much to charge their customers, the new article explains, insurance companies do not rely only on general information or trends. They can actually collect information on their customers from other companies that have sold this data; for example, it's possible that a driver's insurance company has purchased information about their grocery buying habits based on their club card data. This will help the car insurance companies decide if they can get away with raising rates.
If people determine that their car insurance company has suddenly and unfairly raised their rates, the solution is fairly simple: find another insurance company that will offer the previous lower rate.
"If the company that you are with doesn't care about keeping your business, and another company is willing to give you a better deal, you owe the first company no loyalty," the new article said.
Anybody who would like to learn more about Insurance Panda is welcome to visit the user-friendly website; there, they can also read the new article in its entirety.
About Insurance Panda:
Established in 2011 in Manhattan, New York, Insurance Panda is now one of the top providers of free auto insurance quotes in the United States. For more information or a free quote, please visit http://www.insurancepanda.com/.
Insurance Panda
261 Madison Avenue
New York, NY 10016
(347) 741-8290
Contact:
James Kennedy
[email protected]
347-741-8290
SOURCE: Insurance Panda
