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Getting Group Auto Insurance Discounts: Joining a Neighborhood Association


Availing group auto insurance discounts is the easiest way to reduce car insurance premiums. There is no haggling involved with insurance agents at all or going online for multiple quotes and comparing them. Although these things are not actually a waste of your time, why spend time on them when you can just join an auto club, an association in your neighborhood or office and get discounts on your policy?

An insurance company just like any other company likes to deal with groups. It is actually easier for them to sell products to groups. They only have to convince a few members and others, especially if the product is endorsed, will most likely follow.  This is not unusual. Group members usually give weight to opinions of fellow members. They consult one another about a lot of things, car insurance coverage among them. Through a group, they can negotiate for better rates. On the other hand, an insurance provider will be happy to comply. They get multiple contracts signed with just the right amount of effort, and there is less advertising expense involved.

You cannot, of course, expect an insurance company to forget about your driving record or your credit history or the kind of car you drive when assessing rates. These things will still influence your rates, but you do not have to worry about that. A company will approach a group ready to give group auto insurance discounts to every member regardless of whether they are high risk drivers or not. Either way, the discount, though not as substantial as you would expect, could mean a lot to you.

Auto group insurance offers other advantages. A company cannot afford to shortchange any of its members for fear that others will terminate policies upon hearing injustice done to a fellow member. If a good number of the group has existing contracts with a company, losing them will not be good for the insurer’s business.

Penetrating a group, particularly a group with huge membership, is a good strategy for insurance companies. As already mentioned the expense involved is minimal. Somebody can represent the whole group or some members of the group to complete the deal. This saves a lot of time dealing with individual members.

Your group does not have to accept the first offer that comes along. Play it coy. Another insurance company will surely make its own move to get the group’s attention. You can negotiate to get the most favorable auto group insurance discounts insurance companies can afford.