Car insurance is not that easy to get nowadays. This can be particularly true in cases where your vehicle falls under the high-risk category. As such, people find various ways so they can get their cars insured. One such means is to settle for group auto insurance.
Before you can avail of group auto insurance, however, you should be one of two things: one, a member of an organization, like your local church, the rotary club or any group where one of its privileges involves group coverage; two, an employee of a private company that counts among its benefits coverage for car protection.
There are several distinct advantages that this policy variant offers. Chief of these is that insurers will most likely extend discounts, especially if the group involved has applied for auto protection as one single entity. The discount usually comes in lower premiums.
Of course, opting for group insurance as vehicle protection is something that should be assessed thoroughly. You can start by looking into the type of cars that your group members own. If their cars are vastly different from your own, then this may pose a problem.
Insurers have classifications for vehicles, normally from 1 to 27. If your vehicle receives a high classification, then you are charged a high premium rate. Nevertheless, under a multiple insurance set-up, such classifications may prove favorable to the group since payment can be shared equally among its members.
However, if you are on a tight budget for your car insurance, this scenario may not be too wise. It is thus best to apply for group auto insurance only when your co-members share similar car models as your own. Along this line, try not to join a group where members own brand-new or high-maintenance cars. These are the kind of vehicles that often get their insurance applications approved, but under high ratings.
If you do decide to join such groups, you may be forced to share in their high insurance premiums when their payments are due. Clearly, this is not something you need, especially if your car insurance budget is rather limited.
Ultimately, group auto insurance still remains an option that car owners should seriously consider. The plan is quite beneficial, particularly for motorists who have yet to have their cars insured. Just make sure though that when settling for this coverage type, you have access to the benefits that it offers. Specifically, try securing a copy of the policy so you can determine if the coverage is worth it, or if it is better just getting your own vehicle protection.
