Differences Between the Group and Individual Policy

Do you know the types of insurance policy that exist for your car? Are you hesitating between taking the group policy that your company offered you or quoting an individual policy? When you choose your insurance, it is important that you have a clear picture. For this reason, we explain the differences between the two so that you can make the best decision.

Policy Types: Collective and Individual

In the country, there are two types of vehicle policy: collective and individual. The differences are easy to spot, we share them with you:

Collective Policy

• They are group

The collective policy covers two or more cars with the same conditions, under the same policyholder (who represents as a payment figure before the insurer). With this insurance, you do not have the possibility to choose the conditions (protection and assistance) according to your tastes and needs. These policies are usually offered by dealers, banks, and large companies in the country.

• The price is fixed in the negotiation

The value of the group policy is usually lower than that of an individual policy because a significant number of policyholders are included in the same package and the conditions (protection and assistance) are much more restricted.

• The renewal depends on the collective record

If one of the cars has some type of accident (theft or accident) the value of the group policy goes up for all the insured at the time of renewal. The price of your insurance depends on a third party and not only on whether you had an incident during the entire insured period.

• The link is with the company

The link to the group policy depends on your employment relationship with the company that purchased the insurance. If for some reason you have your insurance with your company's cooperative, and tomorrow you change jobs, your car is automatically uninsured and abandoned.

Individual Policy

• It is personalized

The individual policy adjusts to the conditions that you choose (protection and assistance). Remember that many insurers have additional services that are tailored to particular cases, such as assistance at home or while traveling.

• The price is set by your conditions

In the individual policy, the price is determined exclusively by your profile. If you are part of the low-risk clients, you will benefit from this type of insurance. Check out what are the other things that are taken into account to determine the value of car insurance.

• The renewal depends on your record

If you have good behavior during the time that you have your individual policy and you do not report too many incidents, the conditions will be favorable for the renewal. You are likely to get a  bonus, which translates into an unbeatable price.

As you can see, each one has its advantages and disadvantages. In summary, the group policy gives you a better entry price, but the individual policy is more tailored to your needs and gives you better options for renewal. In the event that you decide on an individual All Risk Insurance policy, in Compare you will find the best insurers in the country and you can contract with just a couple of clicks.