If You're a Loyal Car Insurance Customer, You Might Be Paying Too Much

Companies make you think your loyalty pays, but that’s not always true. When it comes to your car insurance rate, your loyalty can actually work against you. If you haven’t shopped around for insurance in a while, consider doing it now to avoid being price optimized. Price optimization is a practice the insurance industry uses to get more money out of customers who aren’t likely to shop around. According to NPR, they use software that tracks your spending habits, from what you buy at the grocery store to how often you change cable providers. They use that data to set your rate. Consumer Federation of America rep Bob Hunter told NPR: