Affinity benefits with Auto Insurance Companies

[IceNine]

I have recently started the daunting task of shopping for auto insurance and I'm noticing that a good number of the companies today offer a discount for membership in different organizations.

I've seen numbers varying from as low as 3% to as much as 12%.  I don't know about you but every little bit helps me and free money is always good.

We are realistically talking as little as 30 dollars a year to as much as 3-400 especially for our cadets and young seniors.

I am however finding a road block in how to go about getting CAP listed with the companies.  Anyone have experience with this? 

I have approached my Wing CC about this and he was interested in presenting the concept at the NB meeting coming up.

I just need to get the footwork done.  Obviously cannot get much information from the Insurance companies today everyone with the answers is out until at least Monday.

[RiverAux]

CG Aux has several deals with marine insurance companies that are available for members, so it is possible.  Nationwide Insurance also offers an auto insurance deal for CG Aux members.  Might want to give them a try as they're obviously open to the idea. 

[Capt Rivera]

Geico & USAA are very military friendly. They might prove to be CAP friendly but I wouldn't know the procedures to accomplish your goal.

I do think its a good idea though....

Have you called any companies yet and asked their customer services for info?

[Eclipse]

My personal experience with insurance companies is they have "$##.##" to give as a discount, no matter what your affiliation.

If you hunt around hard enough you'll find something you qualify for, but in the end the final number will be about the same.

[wuzafuzz]

Insurance companies usually set rates depending on risk.  Without an actuarial study to determine whether CAP membership implies a different risk factor, it's hard to imagine how they could intelligently declare what discount our members might rate.

I work for an insurance company and I don't even get a discount.  Our rates are already as low as they can be while ensuring good service and solvency.

[jimmydeanno]

Insurance companies usually set rates depending on risk.  Without an actual study to determine whether CAP membership implies a different risk factor, it's hard to imagine how they could intelligently declare what discount our members might rate.

I don't think I'd want them to do that study, with all the bodily injury and aircraft incidents we have after all.  I suppose we could look for a discount using all the safety requirements we have to meet... 

[Eclipse]

Insurance companies usually set rates depending on risk.  Without an actuarial study to determine whether CAP membership implies a different risk factor, it's hard to imagine how they could intelligently declare what discount our members might rate.

They set the rates based on the risk of the person / thing being insured - not the group.   Being a member of the armed forces might imply more risk to your personal profile, but the reason you're given a discount for "x" reason is simply marketing to get you as a customer.

I work for an insurance company and I don't even get a discount.  Our rates are already as low as they can be while ensuring good service and solvency.

I can't disagree with that based on personal experience.

I ride a motorcycle and qualify for any number of reasons that carriers used to give discounts - big bike, experienced rider, AMA, safety instructor, etc., and despite the fact that my current company dropped all those a few years ago, they are still the cheapest.

Unless the policy is being underwritten by some third party, odds are any company offering a discount has 5-10% slop built into the price.

[wuzafuzz]

Insurance companies usually set rates depending on risk.  Without an actuarial study to determine whether CAP membership implies a different risk factor, it's hard to imagine how they could intelligently declare what discount our members might rate.

They set the rates based on the risk of the person / thing being insured - not the group.   Being a member of the armed forces might imply more risk to your personal profile, but the reason you're given a discount for "x" reason is simply marketing to get you as a customer.

I work for an insurance company and I don't even get a discount.  Our rates are already as low as they can be while ensuring good service and solvency.

I can't disagree with that based on personal experience.

I ride a motorcycle and qualify for any number of reasons that carriers used to give discounts - big bike, experienced rider, AMA, safety instructor, etc., and despite the fact that my current company dropped all those a few years ago, they are still the cheapest.

Unless the policy is being underwritten by some third party, odds are any company offering a discount has 5-10% slop built into the price.

Rates are evaluated on a group basis all the time.  Of course there is group insurance, much like the group life coverage you can get through an employer or other group.  Even individual policies include group data points merged with your individual data.  For instance, if you are under 25 and male you are a higher risk for auto coverage, even if you are an incredibly responsible person with great driving skill.  Group data.  Add the legally required buffers for cash reserves, expected payouts for fraudulent claims, litigation, etc and enough profit to stay afloat and there are your rates.  At least until politicians get involved.

Would CAP ever rate a group discount?  I suppose it depends on the type of insurance.  As a general rule we are probably more civic minded, fewer criminals than a typical cross section of society, probably less substance abuse, and so on.  Risks?  A huge age variable including many seasoned citizens with a higher probability of age related conditions.  Many of us fly, which is an increased risk for life insurance.  An actuary could probably rattle off a boatload of other factors most of us would never think of.  Absolutely, discounted rates are marketing, but they are only extended to groups that are perceived as a lower risk and are predicted to offer adequate returns.