We all want to pay cheaper rates for car insurance. But which organizations offer the best discounts for car insurance?
How much can you save on car insurance through Costco, AAA, or the AARP? Do firefighters or federal government employees pay less for car insurance?
Today, we’re answering all your questions about membership-based car insurance discounts, including which organizations offer the cheapest car insurance rates.
How Organization-based Car Insurance Discounts Work
If you are a member of a certain organization, then you may be able to save a significant amount on car insurance.
Specific organizations have partnered with car insurance companies to offer discounts to members. If you’re a Costco member, for example, then you can get cheap car insurance through Ameriprise. If you are an active duty or retired member of the US military, then you qualify for cheap USAA car insurance.
Organization-based discounts work in different ways depending on the type of organization. Some offer a flat-rate off your annual auto insurance premium. Others provide a certain percentage off of your annual rates. Sometimes, you can get free perks like free roadside assistance coverage or free accident forgiveness, just for being a member of an organization.
Common types of organizations include:
- Paid membership programs (like Costco or AAA)
- Employee unions or other groups
- Alumni groups
- Professional groups
By taking advantage of organizational discounts, you can save hundreds of dollars on car insurance every year.
Now, let’s take a look at some of the best organization discounts available today.
USAA – Discounts Available for Military Personnel and Their Families
USAA is consistently one of the top-rated car insurance companies in the United States. It’s also one of the most affordable car insurance companies.
There’s just one catch with USAA: it’s only available to active duty or retired members of the military and their families. If you or an immediate family member qualify for USAA auto insurance, then you can save hundreds of dollars per year compared to similar plans from competing car insurance companies.
Costco – Save Hundreds Through Costco’s Partnership with Ameriprise
Costco has partnered with car insurance company Ameriprise to offer cheap car insurance to members. Today, Costco members can save $200 to $400 per year by getting Costco car insurance through Ameriprise. Ameriprise sells well-rated car insurance to customers in most states.
The average Costco member will pay around $500 to $650 per year when getting car insurance through Ameriprise, which is significantly lower than the $850 to $1,000 paid on average for policyholders across the United States.
You also have to factor in the cost of a Costco membership, which is $60 per year for standard members or $120 per year for executive members.
AAA – Get Discounted Car Insurance and Other Perks
AAA sells car insurance to drivers across the country. AAA car insurance is rarely the cheapest option in any state. However, it’s generally ranked near the top in terms of customer service and claims satisfaction.
Plus, all AAA members get roadside assistance – something that few other insurance companies include by default. AAA also offers travel benefits, vacation planning, and financial products to members, among other perks.
To qualify for AAA car insurance, you’ll need AAA membership, which is priced between $40 and $170 per year, depending on your desired level of service.
AARP – Special Car Insurance Rates for Anyone Over 50
The American Association for Retired Persons (AARP) offers cheap car insurance by partnering with certain car insurance companies. In recent years, the AARP has partnered with The Hartford to offer discounted car insurance rates. Typically, The Hartford charges higher rates for higher customer service. Thanks to your AARP membership, however, you can get a significant discount on your premiums.
AARP members also get unique benefits through The Hartford, including lifetime renewability coverage. Lifetime renewability guarantees that your car insurance coverage will be renewed each year as long as you meet a few simple requirements. Plus, you can save even more money by bundling home and auto insurance together.
AARP membership is priced at $13 to $16 per year. In addition to discounted car insurance, AARP members get discounts on healthcare services, retailers (like Target), travel services, entertainment platforms (like Ticketmaster), and more. Membership is available to anyone over 50.
Profession-based Discounts – For Police Officers, Firefighters, Teachers, Nurses, First Responders, and More
Certain professions can qualify for car insurance discounts. If you are a police officer, teacher, nurse, firefighter, or first responder, for example, then you may be able to save 5% to 20% on car insurance premiums.
Many of America’s largest insurance companies offer substantial discounts to all of these professions. Farmers, for example, offers discounts to doctors, nurses, dentists, teachers, police officers, and firefighters. GEICO, meanwhile, offers an instant 8% discount to federal government employees. If you work in any of the professions listed above, then check with your insurer to see if you qualify for a discount.
School Groups – Alumni Organizations, Fraternities, and Sororities
Certain school-based organizations may qualify for additional car insurance discounts. Alumni organizations, fraternities, and sororities will frequently partner with insurance companies to offer substantial discounts to members.
GEICO, for example, has a list of 500 groups that qualify for rate cuts, including alumni associations, sororities, and professional organizations.
You can typically expect to save 10% on car insurance by taking advantage of alumni or school group savings.
BJ’s Wholesale Club – Get Cheap GEICO Car Insurance Through BJ’s
Although not as popular as Costco, BJ’s Wholesale Club still offers discounted car insurance rates to members.
BJ’s Wholesale Club has partnered with GEICO, allowing members to save hundreds of dollars per year while getting car insurance through one of America’s largest and best-known insurers. A BJ’s membership costs $55 to $110 per year.
Government Employee Discounts – For Municipal, State, and Federal Employees
If you are an employee of the state, municipal, or federal government, then you may qualify for car insurance discounts. Generally, federal employees are the most likely professionals to receive car insurance discounts. However, some companies may offer car insurance discounts to state and municipal employees as well.
If you are a member of any of the following organizations, then you may qualify for a government employee discount:
- Federal Managers Association
- National Federation of Federal Employees
- Federal Law Enforcement Officers Association
- Federal Physicians Association
Final Word on Membership and Organization Discounts
Most of America’s largest insurance companies offer significant discounts to various organizations. You can save money as a member of a wholesale club like Costco, for example. You can also save money for working in certain professions – like a soldier, teacher, doctor, firefighter, nurse, or police officer.
Compare car insurance quotes today and make sure you’re taking advantage of the best organization-based car insurance discounts.