What does a group discount on car insurance mean?

Group Discount on Company Cars

The premium for group auto insurance is usually lower than the premium for standard auto insurance. This makes it attractive to purchase group auto insurance, especially for businesses. However, not every insurance company offers this type of coverage. Many companies own multiple cars. When they choose to take out group auto insurance, the premium is generally lower. Furthermore, agreements are made regarding the premium, the deductible, the terms and conditions, and the coverage. These details are set out in what is known as a group policy summary.

The coverage options for group auto insurance are, in principle, the standard auto insurance coverage options, namely: third-party liability, limited comprehensive coverage, and all-risk coverage.

Private car with a group discount

Companies may choose to provide group insurance not only for company cars but also for private vehicles, such as those owned by employees. In some cases, it is even possible to include the vehicles of other family members in the coverage. When companies provide group insurance for both company and private vehicles, this is referred to as “mixed group coverage.” Employees (and any family members) pay the premium directly to the insurer. Claims are also handled through the insurer, without the employer’s involvement.

Factors Affecting Premiums

When you purchase group auto insurance, several factors play an important role in determining the premium. These include the number of cars to be insured, the types of vehicles, and any items being transported.

Purchase Group Auto Insurance

Group auto insurance doesn’t just save you money. It also saves the insurance company time and money, since they can easily review multiple policies at once.
Because insurance companies incur lower costs with group auto insurance, they are generally in favor of offering it.

Would you like more information about group auto insurance and whether it’s a good option for you? Please contact us. We’d be happy to help! We’re also happy to answer any other questions you may have about auto insurance. You can reach us Monday through Friday between 8:00 a.m. and 6:00 p.m. at 088-6883700.