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What is a Group Auto Insurance?


Are you part of a family whose members drive their own personal cars? Or are you in a business that supplies company vehicles to their employees? If you answered yes to any of these questions, you are qualified to avail of a group auto insurance.

What is this all about? It is getting multiple cars and/or multiple individuals insured at a much lower rate compared to applying for individual auto insurance. Companies usually offer big discounts for clients who will insure more than one vehicle all at once. This principle is the same as buying goods in bulk, where customers can purchase them at a cheaper price.

Another advantage of this type of insurance is its flexible term of payment for each member. Although you applied as a group, it does not mean you have to pay as a group also. You can pay dues at your own pace, according to your financial capability. You do not even have to pay the same rate; it basically depends on the kind of vehicle insured.

Although you may already get a huge deduction on payment for insuring multiple cars, you can still continue to lower down rates by these simple tips:

1. Compare quotes from different companies that offer group auto insurance available in your state. By doing this, you might find an even cheaper deal for your group with basically the same coverage.

2. The more cars you insure, the bigger the discount, so try and ask more people to apply for this type of insurance so that all of you can benefit from a cheaper premium. This particularly works well for employees in a business. If you are the business owner, you can invite workers in applying for a group insurance policy, which can be considered as an incentive for them considering that they would be paying a discounted price for their premium.

3. Remember that you are applying collectively with one another. This would also mean that if one of you is considered a high risk driver, all of your rates will increase. Thus, it is wise to make sure that all of you have a good driving record. If this is inevitable, you can help those who are high risk to level down their status by any means, such as making them enroll in driver’s education or helping them pass a defensive driving test.

Group car insurance is not only advantageous to applicants, but also to the insurers, so consider the company as part of your group and help each other to achieve your vision of a good auto insurance agreement.