My Car Insurance Renewal Experience: Is This Normal?
Hi everyone, I recently had an experience that left me scratching my head, and I wanted to see if anyone else has faced something similar.
After being a loyal State Farm customer for decades, I realized they didn’t value my loyalty as I had hoped. I noticed that new customers were getting significantly better deals, which prompted my switch to Progressive last year. I really appreciated their user-friendly online platform that allowed me to customize my coverage easily for all my vehicles.
However, when it came time for my first renewal, my premium increased by $20. One of the main reasons for my switch was to escape those surprise price hikes I experienced with State Farm over the years.
I reached out to Progressive to understand the increase and learned it was due to the loss of a new customer discount that had applied to my initial policy. Disappointed, I shrugged it off and renewed.
Fast forward to my second renewal, and my premium jumped by an astounding $70—despite having no accidents or tickets on my record and carrying five cars on the policy.
Approximately 20 days before my renewal date, I contacted them and spoke with a representative who assured me he could bring the price back down to the original amount. He instructed me to call him in early March to finalize it.
However, after trying to get in touch with him for 3-4 days with no luck, I called the regular customer service line and provided a reference number from my previous conversation. They acknowledged the situation, but as they processed my renewal, the price mysteriously increased by $100. Frustrated and feeling unheard, I decided not to renew my policy and to seek alternatives.
Using an online brokerage tool led me right back to Progressive. To my surprise, I entered all my information and received a quote that was not only lower than my last year’s quote, but significantly cheaper for the same coverage across all five vehicles.
So, is it common to feel like we have to reapply as new customers each year just to get a fair rate? In the end, I saved $475 by switching!
It sounds like you’ve had quite the frustrating experience with your car insurance renewals. It’s not uncommon for insurers to offer lower rates or discounts for new customers, which can be really disheartening for long-term clients like yourself. Many people find that their rates tend to increase over time, even without any claims made or changes to their situation, which just doesn’t feel fair.
Your experience highlights a common issue in the insurance industry, where loyalty isn’t always rewarded. It’s great to hear you were able to navigate that situation and find a better deal with Progressive, especially if it’s saving you $475! Using online comparison tools can be a smart strategy not only for finding better rates but also for keeping your premiums in check year after year.
As for your question about needing to apply as a new customer each year, it’s unfortunate but true that many people have to play that game in order to get the best rates. It’s always a good idea to shop around and check for new customer discounts annually. If you’re willing to switch, it can often lead to significant savings, as you’ve shown.
Hopefully, more companies will move towards more transparent pricing policies in the future that value long-term loyalty just as much as new customers. Thanks for sharing your experience—it can help others navigate their own insurance journeys!