• Staying with the same auto insurance company for years allows you to get discounts.auto documents image by Aleksandr Lobanov from Fotolia.com
  
  If you live in the United States and own a car, state law probably requires you to carry auto insurance. You may be tempted to jump from one company to another in order to save money, but staying with the same company saves you more in the long run as well as helping you avoid legal problems associated with lack of insurance.
  
  

Loyalty Discount

• Some auto insurance companies offer discounts on your premiums if you have been with them for several years. Many companies offer a 5 percent discount if you have been with the company for more than five years. This is called a loyalty discount. You are more likely to receive a loyalty discount if you have had not had any at-fault accidents or traffic citations during the period you have been covered.
  
  

Credit Building

• Paying your auto insurance bill on time every month can help increase your credit rating. This is especially important if your credit score is low to begin with. Some auto insurance companies charge higher rates to people with poor credit scores, so improving your credit by staying with the same insurer can save you money.
  
  

Proof of Insurance

• If you switch insurance companies, you risk being without coverage for a few days between the cancellation of the old policy and the start of the new one. This could have serious financial or legal repercussions should you get into an accident during this gap.
  
  Furthermore, the Department of Motor Vehicles may mark you as uninsured when your old insurance company reports the cancellation. In some states, your license may be suspended until the issue is sorted out. If you stay with the same insurance company, you avoid these problems.