Choosing Family Car Insurance

Family car insurance is becoming a popular concept in many households and sees family members pooling their resources to secure the best possible deals. As well as grouping auto insurance requirements together, a multiple policy purchase that incorporates home, property and holiday coverage can lead to hundreds of dollars in savings. However, there are certain factors applied to an auto insurance application that can actually see premiums rise instead of fall and consumers should be aware of these before making a final purchase.

One of the most little-known practices in the auto insurance market is the way carriers use a vehicle in a household with the highest group rating to establish a premium. Even though a young driver may only be using an old beater for driving purposes, they will still be issued with a higher premium if there is a more expensive vehicle within the same household even though the young driver never uses it. This is a particularly unfair hidden practice that not only penalizes the young driver, but penalizes other household members as well.

As an alternative to pooling resources, families are best advised to consider a group insurance plan and the costs associated with these increasingly popular insurance options can be further reduced if friends, extended family and neighbors become involved in the scheme. Group insurance plans often offer flexible payment schemes that can be particularly helpful for families with a low income. Reward schemes and loyalty programs run by existing insurance companies can also offer a number of financial benefits in households that have shown unwavering commitment in the past.

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