You can get maximum discounts and save money by joining in group auto insurance, the most affordable way to get an insurance policy. It covers many people and cars.
There are two ways to qualify in group auto insurance: join as an employee of a company that provides a group policy plan or join as a member of an organization such as a rotary club, a church, a community service association or any group of which membership privilege includes access to group policy.
Group auto insurance is like a family buying different coverage from one company. In one business, employees applying for multiple auto insurance policies can get lower premiums. An insurance agent will likely give more discounts to a group that has more members applying for the same policy.
The disadvantage in this type of coverage would be that your record will be affected if one or two policy holders in your group gets involved in a crash, receives several citations, or needs auto repairs. This will increase the policy rate for you and everyone belonging to the same plan.
In determining premium costs, companies will classify cars. The rate is 1 to 27. Before joining in an insurance group, make sure that the model and type of your car is the same as everyone else. Avoid joining a group coverage policy where members have brand new vehicles or own high-maintenance cars. If you have a different car classification, the rate will go up. The highest rating will be followed when determining premiums.
How do companies decide on ratings? Auto insurance firms consider the extent of damage and cost of each vehicle part or model. This affects the rating. Lower ratings favor group applicants because they will pay less.
The repair duration of a car model is also included in evaluation. Longer repair time means higher cost. Insurance firms do not want to pay more, so they will give the group higher ratings.
The outer body of a car, its durability and strength is also included when assessing rates.
On the other hand, cars with security systems, such as alarms, high-security locking devices, wheel locking devices, and anti-theft devices may lower the group’s premium rates because it reduces the risk of damage and theft claims.
Before participating in group car insurance, you have to know the group restrictions of the policy and what is the available coverage in the plan. More insurance companies are now offering group car insurance, so it is easy to find one.
Group auto insurance is a good option, especially when you have tight budget.