Loyalty is an interesting commitment. When you know the local agent, you trust him or her to see you through the claims system. The friend is supposed to be your advocate and ensure you get a square deal. When the business becomes faceless, the only way it can build trust is by results. If you have a query, it can respond promptly giving you sensible and relevant information. Sadly, if you send an email, you often get an automated response or something written in poor English that fails to answer your question. This does not inspire confidence so, for the most part we suspend judgement, hoping we will never need to make a claim. This is where fantasy meets reality. Most insurers take our money and hope we will never make a claim. Indeed, many write so many limitations and exceptions into the policy, it's difficult to get any money out of them. The standard response to a claim is either to reject it or offer us as small sum as possible, hoping we will settle rather than fight on.
Once you accept insurance companies are for profit and really don't care about us individually, there's no reason to stay loyal. You should always be looking for the best set of terms at the best possible premium rates. Too many of us renew on auto pilot, never seriously bothering to shop around to find alternative deals. This is pure foolishness. Only if we use the free market economy and take our business to the sellers offering the best services will the general quality of the services improve. Real competition improves the market for us as consumers. Think about it this way. Suppose you stay with the same company for ten years, paying $1,000 per year. If you never make a claim, all that money disappears into the company's profit. Even if you make a claim for $8,500, the company is still ahead. So why is the next year's auto insurance quote always higher? If you do not get a real loyalty bonus, you are being treated as a sucker. Get auto insurance quotes from competitors and see what welcome bonuses are on offer.