You may already be part of a group that offers discounts on car insurance. The discount is designed to get drivers in your group to switch to the insurer’s policies. But the savings might not always be worth the membership hassle.
How do I get affinity group car insurance discounts?
Affinity discounts are usually advertised in an organization’s literature as a benefit of joining the group. To get the discount, carefully follow your group’s instructions. The discounts vary from state to state, but some of the more common affinity discounts include:
- Employer. You can get discounts based on who you work for. For example, Geico offers discounts up to 8% to federal workers. And if you work for a General Motors company, National General insurance offers exclusive discounts and benefits.
- AARP. The Hartford has partnered with AARP to offer exclusive car insurance deals and policies to seniors.
- Driving club. Motorist groups like AAA offer discounted car insurance to members.
- Fraternity or sorority. If you were ever a member of a fraternity or sorority auto insurers often offer discounts between 5% to 10% off car insurance premiums.
- Profession. Many carriers offer profession-specific discounts. For example, Farmers Insurance offers discounts of up to 18% for CPAs, pilots or dentists. Liberty Mutual not only offers discounts to teachers but also waives their deductible if the accident or vandalism happens on school property or while driving for school business.
How much can I save with an affinity group?
The discount on an affinity policy is usually between 5% to 20%, depending on the size of your group. In addition, insurance carriers offer perks like auto-renew policies, locked-in rates or special billing options for members.
Compare car insurance with affinity discounts
Is an affinity group discount worth it?
Consider the following before making a decision on whether this type of policy is right for you:
- Policies built for the group, not the individual. The downside to affinity group discounts is that the policies are set by the agreement between the car insurance company and the group, not tailored to the members. That means you could be missing out on coverage you need or deeper discounts you may qualify for if you were to get a personal policy.
- Not always the best deal you can get. Even if the group discount seems like a great deal, shop around to find the best discount around.
- Tied to membership status. It’s great if you’re using the services from the group, like AAA’s member deals and towing coverage. But if you decide you don’t want to pay for membership or the member fees are too high, you’ll lose your car insurance discount too.
Are affinity group discounts ethical and legal?
Many consumer groups have posed ethical and legal concerns about affinity groups, both in the way they’re formed and implemented by insurance carriers. Some claim they unfairly target high-income and white communities, and that low-income customers are being forced to pay for discounts for the wealthy.
California is getting ready to strengthen regulations on affinity groups after an investigation found that some affinity programs discriminate against low-income people. Advocates are pushing back, claiming that many programs specifically target professions that need the extra savings to make ends meet, such as teachers, hotel workers and union workers.
Bottom line
Affinity discounts help you take advantage of discounts on your car insurance. But if you’re not sure the negotiated policies will meet your coverage needs, take the time to compare policies and find the best protection for your car.
Frequently asked questions about affinity car insurance
