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If your Laurel, Maryland home has been insured with the same home insurance company for a number of years and you faithfully renew your policy year-after-year, there is a good chance that you can qualify for a discount on your premium. Maryland home insurance companies have their own specific rules on how and when they reward their most loyal customers.
If you have maintained home coverage with the same carrier for 10 years and never filed a claim, you may qualify for what is known as an experience rating credit. In other words, you are rewarded not simply because you have been with the same carrier for years, but because the insurance company has had a good experience with you as a customer.
Say you pay $1,000 per year for your home insurance policy and do so for 10 consecutive years. You never file even a small claim for a few loose shingles falling off your roof. Your insurance company will have received $10,000 from you and paid out zero dollars in claims.
Rewards can come in the form of a discount to your annual premium or not being hit with a surcharge for filing a claim. Loyal policy holders may have their rates held steady while a new client may be subject to higher rates that the insurer recently decided to charge.
It costs insurance companies a lot of money and time to acquire new clients. It is in their benefit to hold onto good-paying and loyal customers that they already have. Loyalty programs are a marketing tool that is an incentive for current customers to stay with their same insurance company rather than switch to another.
As your independent agent, we agree that staying with the same insurance company can be beneficial thanks to the discounts you can receive for being a loyal customer. However, that does not mean you should not consider any other insurance company. Give us a call and talk to an independent agent. They will tell you whether you can get a lower premium by staying with your present carrier, or perhaps, switching to a new home insurance carrier.