Staying with the same auto insurer for years feels like safe financial management. Insurance algorithms frequently treat long tenure as an opportunity to raise rates.
Regulators call this practice price optimization. Insurers analyze customer data to model price sensitivity and set renewal premiums based on shopping likelihood rather than risk.
Insurance commissioners in states like California, New York, and Florida have issued bulletins banning or restricting price optimization. In states without bans, loyal policyholders absorb steady rate increases.
Requesting competitive quotes every two years forces insurers to price your policy on risk rather than loyalty.
How many years have you stayed with your current auto insurance company?
