Membership Based Auto Insurance Discounts

There are clubs, service providers, associations and organizations that require membership. Motorists can join some of these by simply paying a yearly fee and others may require certain qualifications before they allow people to join. Some of these organizations can negotiate car insurance discounts for their members from certain insurers due to the buying power that comes with many participants. And insurance is only available to members in the case of AAA and USAA.

Each of them may have special deals with one or two carriers and people may need to choose those providers to get the savings. So, motorists should still shop around as usual and provide their membership details where applicable to get further discounts. Essentially, what counts is the overall best price and coverage. In other words, some other companies may beat the quotes you got using your association with certain clubs or companies. You should always keep this in mind.

Here are the clubs and organizations that can qualify you for vehicle insurance discounts if you are a member;

AARP

Motorists must be over 50 years old to join this program and the fee is minimal. AARP is a nonprofit organization and its main aim is to improve the lives of nearly 40 million participants in any way they can by providing them information, support and discounts, which include automobile insurance provided by The Hartford.

The Hartford website claims that motorists can save over $500 on average by providing their AARP membership details when they are buying auto insurance or getting quotes. Their policies are well regarded as well with high customer and claim satisfaction ratios.

Wholesale Clubs

The most well-known and established warehouse membership club in the US is Costco and it comes with vehicle insurance discounts as well as allowing participants to enjoy wholesale prices across their stores and online. Currently, the minimum yearly membership cost is $60 and people who use this company are likely to save that money on their first visit.

They provide policies to motorists through their chosen insurance company which is currently American Family. According to the American Family website, Costco members can save on average $580 when they switch to this provider. The site states that they currently insure over 1 million cars owned by Costco members. Also, there is a disclosure that not every applicant saves money on their premiums and the figure advertised is for average.

Similarly, BJ’s Wholesale Club currently partners with Liberty Mutual to offer insurance for their members. The insurer’s website says; save 12% or more when you buy online on the relevant page.

AAA

The American Automobile Association (AAA) is made up of several auto clubs across the US. The key benefit of joining this mutual company is Roadside Recovery Services. Also, motorists can enjoy other benefits and membership discounts on many things like restaurants, hotels and car insurance. Any motorist can join the various roadside recovery programs by paying the appropriate fee that ranges from $50 – $200 depending on location and level of coverage required.

According to the AAA website, members get 5% discounted vehicle insurance. You need to be a AAA member to be able to apply for an auto insurance quote from this company. The company may not be the cheapest but it has a high customer satisfaction and claim handling rating and has a strong following.

USAA

This insurance company is well-known for its discounts, excellent policy packages and customer service for the military. According to their website, the membership is open to active, retired and honorably discharged U.S. military members and their eligible family. Once they join the company, they can benefit from its offerings for life.

Others

Several insurers offer discounts for members of various associations, organizations and clubs and the best known of them is GEICO. According to their site, this insurance company offers special deals for groups with a minimum of 50,000 members and they can be a society, charity, alumni association, university, employer and professional associations.

Similarly, smaller automobile clubs strike special deals with other companies.

In conclusion, motorists can save 5 – 10% on car insurance through certain insurers with their membership to various clubs and associations. They may save more by shopping around for the best deals depending on when they compared prices last, their personal details and where they live.