In the U.S., the principles of economics also apply to auto insurance. Basically, multiple transactions or purchases with the same supplier or company will yield lower prices. On the other hand, individual or single purchases will be much more expensive. The same also goes for group car insurance.
Many Americans who have bought insurance coverage in the past from auto insurance providers know that subtle changes in the economy can have great effects on how premiums go. When several providers vie for drivers’ interests, premiums are set to go down. However, the economic recession is reversing that trend. Lower credit limits and higher credit debts are forcing many insurance companies to raise premiums for many motorists.
Many industry experts contend that buying in bulk is oftentimes better than buying individually. This also goes for car insurance. To save money, companies and even families avail of group car insurance. By purchasing coverage for multiple drivers and vehicles, policyholders can actually save a lot on their insurance costs.
Most insurers give substantial discounts to groups that purchase car insurance by the bulk. Often called multi-car discounts, these special rates and promos are also extended by most providers to drivers who own different cars registered under the same name and address. These group car insurance policies also place other drivers in the household under its coverage.
Companies and business establishments that make use of service vehicles in their operations can also cut back on insurance expenses by simply availing of group car insurance. Many business owners know that the premiums they have to buy depend on the insurance companies’ assessment of their vehicles, the nature of their operations, and the risks that their drivers may present. With all these factors bound to affect insurance costs, many companies look for ways to slash expenses on their auto insurance.
While companies can avail of business car insurance, they can also get group insurance for the same vehicles or even their employees’ private vehicles. In the U.S., many business establishments and corporations offer comprehensive car insurance to their employees to persuade them to stay. Instead of a single payment, employees can pay for their insurance by salary deduction or staggered payments. Workers usually appreciate company perks like this because they no longer have to shell out a thousand dollars or more for insurance each year. With group insurance, they can get the coverage they need and pay for it at a lower cost with several payment methods.