What is a membership or group discount?
A membership or group discount is one way to save if you belong to a professional group or organization. For instance, some of the top car insurance companies offer discounts for members of the military. Others may be able to get discounted insurance through a professional organization. If you choose to use a personal insurance policy, you may be able to save up to 15% with a membership or group discount based on your profession and the insurance company you choose.
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UPDATED: Sep 3, 2021
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- Many top companies offer membership or group discounts to professional groups and members of the military
- There are three ways to get a membership of group discount; one is through your job
- GEICO and USAA offer some of the most generous discounts to active duty and veteran military members.
- Sometimes, all you need is to use regular discounts
What is a membership or group discount? In terms of car insurance, a membership or group insurance discount means saving on your car insurance because you belong to a specific profession, recreational organization, union, or student group.
You can receive a membership or group discount on your car insurance in a few ways. However, each option comes with its advantages and disadvantages. Many car insurance companies offer different sets of discounts.
Read on to know more about what a membership or group discount is. We also discuss how the discount can affect your car insurance rates and which companies offer the most generous car insurance discounts.
Before learning more about membership or group discounts on car insurance, enter your ZIP code into our free quote tool above for rates from companies near you.
What is a membership or group discount on car insurance, and how do you get it?
You can get a membership or group discount on your car insurance in one of three ways:
- Often, you may be able to purchase discounted insurance through your work. That is often called an employer discount.
- You might be able to get group insurance through a professional organization if you are a member.
- You can earn a membership or group discount directly by purchasing a personal car insurance policy and asking for the discount. It is also called a professional or affinity group discount.
How does a group car insurance discount program work? You will likely need to apply through your organization and use an online code. In turn, you can use the insurance and enjoy benefits until it is time for renewal (usually after one year).
For example, the California Teachers Association offers its members group car insurance, among other benefits. With this group car insurance, each CTA member enjoys:
- Dependable rates for 12 months.
- $500 in coverage for personal property stolen on school grounds.
- A waived deductible for vandalism and collision damage to their cars if it happens on school grounds.
Also, many businesses offer their employees team member discounts by partnering with specific car insurance companies.
You can also take advantage of member discount programs if you belong to a student group, a fraternity, or a sorority.
There are many membership benefit ideas that most people might not be aware of. For instance, as the Insurance Information Institute points out, military veterans stand to benefit from car insurance discounts, as well.
Military veterans can get discounts from many insurance companies. They can often get certain benefits through military insurance companies that market directly to veterans and their families.
Advantage of a Membership or Group Car Insurance Policy
There is a clear advantage to obtaining car insurance through a company you work for or a professional organization. In many cases, you can enjoy deep discounts that you might not with a personal policy.
Disadvantages of a Membership or Group Car Insurance Policy
There is one huge disadvantage to using a membership or group insurance policy: It is not personalized, so, you might not receive adequate coverage.
Group insurance offers set rates but set coverages. You will either need to opt for a personal policy and have that serve as your primary policy or purchase supplemental car insurance.
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Which car insurance companies offer the best membership or group discounts?
Here are 14 of the top car insurance companies that offer the best membership or group discounts on car insurance:
|Company||Membership or Group Discount||Savings|
|AAA||Membership, Professional, Alumni||Up to 7.4%|
|AARP/The Hartford||Membership||Up to 10%|
|American Family||Young Volunteer||Varies|
|Farmers (2)||Professional||Up to 15%|
|GEICO (1)||Military||At least 15%|
|Liberty Mutual (1)||Military||Varies|
|Liberty Mutual (2)||Professional||10%|
|Progressive||Active-Duty Military in Louisiana||25%|
|State Farm||Active-Duty Military||Not Specified|
|USAA||Generational*||Up to 15%|
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*USAA gives a discount to members whose parents were USAA members. It also claims that people can save $707 for switching over their insurance.
As you can see, out of all the GEICO membership discounts, the military discount may be the most generous. Also, many of these companies have varying discounts, but the most you may save is 15%. (Progressive and State Farm’s programs are outliers.)
What are some other car insurance discounts to ask for?
There are some other auto discounts to ask for in addition to membership or group discounts to save even more with your car insurance: The biggest ones include the multi-policy, multi-car, and passive-restraint discounts.
Additionally, you may be able to save if you have teens or your children are attending college. You may save up to 25% with a good student discount if your children earn at least a 3.0 grade point average. If your child is away at college, you can save up to 25%.
You can earn even more savings by being a loyal customer, using your car less, and being a responsible driver.
- Savings for customer loyalty may vary, but some companies, like GEICO and Allstate, give their customers rewards for renewing their policies.
- Allstate (Drivewise and Milewise) and Progressive (Snapshot) will reward you if you accumulate a certain number of miles on your car each year.
- Several companies offer a diminishing deductible if you go one to five years without getting into an accident or filing a claim.
Talk to an agent and see how you can mix and match different discounts to save on your yearly rates.
What is a membership or group discount? The Bottom Line
If you belong to a group or the military, you have plenty of options when it comes to getting discounts on your car insurance. Many companies are willing to cater to members of these groups, so it is worth looking at their policies.
However, some discounts are so small that you could probably save more with regular car insurance discounts.
We hope this helped you get a better understanding of what is a membership or group discount. To see rates from top car insurance companies in your area, enter your ZIP code into our free quote tool below.