Your Guide To Group Auto Insurance
Have you ever hear of group auto insurance? If not, you’re not alone. Group auto insurance is not known by most consumers because it’s almost like a specialty auto insurance policy.
Group auto insurance is different in some ways and yet the same in other ways as individual auto insurance.
Group auto insurance is generally not a public insurance policy. In other words group policies are generally not sold directly to the public but instead purchased through an employer, credit union or some other type of organization. Let’s review the similarities and differences of a group and an individual auto insurance policy .
Group Auto Insurance Vs. Individual Auto Insurance
What’s The Same:
Insurance Coverages:
- Auto insurance coverage on a group discount car insurance policy will be the same as the auto insurance coverage on an individual policy.
- In a group policy just like in an individual policy, you can still get comprehensive and collision coverage, liability coverage, medical payment coverage, uninsured/underinsured coverage, car rental and towing.
- If the car is leased or financed, the finance company will still require comprehensive and collision coverage on the vehicle.
- And it is still the law that the vehicle have minimum liability coverage.
What’s Different:
The Cost:
- The premiums are generally lower in a group auto insurance policy.
- The premiums are lower because of the discounts offered.
- The discounts are available because of the volume of auto policies contained within a group policy.
- A group discount is offered in group auto insurance policies that are not available in individual auto insurance policies.
The Deductibles:
- Insurance companies may only offer a higher deductible on a group discount car insurance policy.
- The higher deductible is used in group auto policies to help keep the claim activity down so that they can continue to offer you a discounted premium.
The Insurance Agent:
- Some insurance providers have local individual agents that you work through.
- Other insurance companies may have service centers that you have to conduct all of your business with.
- Some customers like local agents, some like service centers.
- Whether you have a local agent or a service center is determined by the contract between the insurance provider and the employer, association or credit union….in other words, you as the insured usually do not have a choice.
- You as a policyholder may have a choice – but generally not – the contract is the determining factor.
- But regardless, most insurance providers still will have web access and toll-free numbers for you to contact with any questions or concerns.
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