When you hear about discount car insurance, it can be confusing.   Do they mean discount auto insurance premiums or discounted auto insurance coverages?

To help clear up your confusion – – discount car insurance means that the auto insurance companies, discount your premiums.  The insurance companies can sell you minimum insurance coverages; but they can’t sell you discounted coverages.

Be sure to ask the insurance company if they check credit scores because not all insurance companies do.

Let’s review some details about discount car insurance.

Where To Get Discount Car Insurance

Group Auto Insurance Policies:

  • One way to get discount car insurance is by getting into a group auto insurance policy. Insurance providers today sell group discount car insurance through employers, associations and credit unions.
  • These group discount car insurance policies generally offer the same auto insurance coverage as individual car insurance policies; but at a discounted premium.
  • The discounted premiums can be quite significant.   Check with your employer, association or credit union for an auto insurance quote.

Discount Car Insurance Agencies:

  • Some insurance providers have local, individual insurance agents that you can work through.   Other providers may have service centers that you have to conduct all of your business with.
  • In the contract between the insurance provider and your employer, association or credit union is where you would find out whether you have to work with a service center or an agent.

Premiums on Group Auto Policies:

  • Insurance providers can discount the premiums on these group policies because of the volume of policies contained within the group policy.
  • Discount car insurance simply means the premiums are discounted – not the coverages or the service provided.   Get a comparison quote from your employer, association or credit union; you may be surprised on the discounted premiums.

Claim Service on Group Auto Policies:

  • Your claim service should not be any different than if you had an individual auto insurance policy.
  • Some insurance providers may have special body shops they use for group discount car insurance policies. But that is due to the volume of claims.  The insurance providers want to make sure that the body shop can handle the large volume of clients that result from these group policies.
  • Your claim service should not suffer because the insurance providers generally use the same claim adjusters on the group policies that they would use on the individual policies.

Auto Insurance Coverages On Group Auto:

  • The available insurance coverages on a group policy will be the same as the auto insurance coverages on an individual policy.
  • You can still get comprehensive and collision coverage, liability, medical payments, car rental and towing.
  • If the car is leased or financed, the finance company will still require comprehensive and collision coverage on the car.   And it is still the law, whether the car is covered on a group auto policy or an individual policy to carry liability coverage on the car.
  • Where the differences in coverages comes up is in your deductibles.   Insurance providers may only offer you a higher deductible on a group auto insurance policy.   The reason the providers do that is to keep the claim activity down so that they can continue to offer a discounted premium.