Insurance carriers use 'price optimization' — they raise rates on customers their models predict won't shop. Loyalty is literally a tax. Here's the shopping cadence that keeps you in the cheapest tier.
Insurance carriers have a name for loyal customers who never shop around: they call them 'price inelastic.' Translation: they can raise your rates and you won't leave. Industry data shows that carriers systematically increase premiums by 3-8% annually for non-shopping customers, above and beyond any risk-based increases. Over 5 years of loyalty, this 'inertia tax' compounds to 15-40% above the rate you'd get as a new customer with a different carrier. The fix is simple but requires discipline: shop your policies on a regular cadence. Here's the exact calendar.
Insurance carriers have a name for loyal customers who never shop around: they call them 'price inelastic.' Translation: they can raise your rates and you won't leave. Industry data shows that carriers systematically increase premiums by 3-8% annually for non-shopping customers, above and beyond any risk-based increases. Over 5 years of loyalty, this 'inertia tax' compounds to 15-40% above the rate you'd get as a new customer with a different carrier. The fix is simple but requires discipline: shop your policies on a regular cadence. Here's the exact calendar.
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