Group auto insurance works quite simply. Think of it as a group discount you get when dining in a restaurant. Chances are that you have encountered a promotional discount wherein a family of six can have one member dining for free. Another good example is buying entrance tickets to a theme park. They usually give group discounts whenever you can buy five tickets for only the price of four.
This holds true to group auto insurance. In general, you will find buying car insurance more expensive on your own, rather than if you will ride on a group discount offered by an insurer to an organization or company you are working for. For the same scope of coverage, it is possible to be able to get a substantial premium discount.
When you are thinking of ways to lower insurance premium rates, ask an agent if his company is offering any kind of group discount, or if his company is affiliated with any organization that you might be a member of. Some companies also offer bulk discounts for big families whose members will all buy insurance policies or coverage from them.
In the same way, it is also possible to ask your boss or president if the company you work for can apply for group auto insurance. If you can gather a certain number of officemates, say six to ten people, who all wish to get auto insurance, you may inquire from an insurance company and ask for special discount on rates and premiums. The more people there are in a group, the more likely they will be awarded with bigger discounts.
Group discounts work both to the benefit of insurance holders and insurance company. For insurance holders, not only do they get premium discounts, but they also enjoy a faster processing time. They are able to get hold of their insurance policies more quickly because only one person handles the application for the whole group. It is likewise faster for insurance companies to complete applications in bulk.
Insurance companies also benefit from group auto insurance. Selling policies to individuals can be more difficult compared to selling them in bulk. The bigger sales volume of group selling makes up for the premium discounts they give to clients. This is often better than having to wait for an individual to close a deal with them.
In addition, group selling is also a marketing strategy to get customer loyalty. Different groups will stick to one insurance company for a premium discount they get rather than going to different insurance companies.
