There are many ways to find car insurance – and the internet has made it possible to find car insurance swiftly and without much effort. Vehicle owners are using comparison websites/ insurance aggregators to compare quotes and benefits and can change from insurance providers with the proverbial click of the button!!
Consumers in the car insurance industry today appear to be less brand loyal than those of years gone by. We live in an environment of fast foods and “easy fixes” – and car insurers are often battling to hold on to clients and to stop them from migrating between car insurers.
Is there value in sticking to a specific car insurance company?
This question leads us to considering the essence of the term “continuous coverage”. It is logical that the movement of clients between different car insurers and their claims history should be part of the risk profile of vehicle owners. So too should be the ability of a vehicle owner to have his car insured all of the time!
What is continuous car insurance coverage?
Continuous coverage refers to the length of time you have maintained insurance on your vehicle. Car insurance companies will scrutinize the insurance “track record” or insurance history of clients. Many clients have a gap in their insurance coverage, i.e. a length of time that they have not had car insurance cover – an interruption in their car insurance cover.
There could be many reasons apart from financial difficulties for such a break in cover. It is not only necessary to consider a gap in car insurance cover , but also to carefully consider the risks posed by those who have been at different insurers for a short period of time – or have driven with their cars uninsured for a while….
Interesting facts on continuous car insurance cover:
- Most companies have higher premiums for people who have not carried continuous coverage for at least six months.
- Changing insurance carriers or insuring different cars does not constitute a gap in coverage, unless you let your car insurance lapse or don’t replace it by your renewal date.
- Being listed on your parents’ car insurance policy also counts toward continuous coverage.
Should we reward car insurance policyholders for continuous cover?
Many insurers are indeed rewarding car insurance policyholders for having continuous cover – and in even refers to this as a “persistency discount”. Too many insurers are plagued with claims from consumers who perceive their car insurance policy more as a savings account than as a car insurance policy contract.
Loyalty initiatives such as no-claims bonuses can reward consumers who are not regular claimants, and discounts for having continuous cover should be seen as another reward.
With car insurance premiums sharply on the increase – there should be more rewards for diligent consumers who are protecting their vehicles on and off the road and who are avoiding accident claims. There should also be rewards for those who have continuous car cover – and insurers should also reward those clients who do not jump from one insurer to the other!!