For insurance companies, the cost of acquiring new customers is significant. There is much competition for new business and insurers are spending billions each year on advertising. If you watch television much, it is difficult to go very long without seeing and insurance related add, and almost everyone knows the Gecko and Flo. As it is so expensive to acquire new customers, insurance companies do what they can to keep their existing customers. Some insurer offer advanced renewal discounts as an enticement to existing customers to remain loyal.
Question: What Is An Advanced Renewal Discount?
Answer: An Advanced Renewal Discount is typically a premium discount that is offered to existing customers for renewing (and paying for) their renewal policy early. For example, the expiration date on your present insurance policy might be December 1st, 20XX. You might receive a letter from the insurance company in September that says: “Your renewal policy has an annual premium of $2,000. Return this envelope with the renewal premium and a request for renewal by October 1st, and we will renew your policy for $1,800. Thank you for your loyalty.”
The $200 is the Advanced Renewal Discount.
Below you will find links to other articles about discounts for which you may be eligible.
Enhanced Insurance is not written by attorneys. If you’re looking for legal advice, you need to contact a lawyer. Further, insurance practices and forms change constantly and are varied from state to state. For definitive answers in your area, contact a local agent.
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