When shopping for home insurance, you should keep an eye out for what’s known as an affinity program to qualify for some potentially significant discounts. An affinity program is a marketing program for certain groups or associations that leverage their combined buying power to secure discounts on insurance. These programs are fairly common for both auto and home insurance policies. They are also found in the world of life and health insurance. In fact, you have probably seen some of the advertisements and may have dismissed them as just another marketing scheme. However, you should give it a second look, as it may save you quite a bit on your next policy.
The average consumer is bombarded with print and broadcast advertising for insurance. Without creating a special relationship or bond to the individual, most of this advertising is undistinguishable from everything else in the world. At the same time, there are also so many insurers offering home insurance policies that consumers can feel overwhelmed when beginning the process of securing coverage. Affinity insurance programs attempt to differentiate their product by aligning themselves with an organization that already has a relationship with the potential consumer. This also lends a degree of credibility to the insurer and the program being offered.
Common sources of affinity marketing are college alumni associations, military affiliations, trade associations, interest groups, and credit unions. Through their affiliation with these organizations, the insurance company is able to target a specific demographic of desirable, prospective policyholders. As a member of any one of these groups, the main benefit you derive is a potential discount on your home insurance that is not available to the general public. In certain situations, the programs or policies offered to an affinity group may not even be available to the general public. By accessing a special program, you not only save money on your insurance, but you might also have some coverage enhancements that are otherwise unattainable.
There are a few ways you can find out about these affinity programs. In many cases, the insurers will ask you for an affiliation when you are applying for coverage. Some will have a drop-down list where you can check to see if you are a member of a partner organization. In other cases, you may need to provide a special code when applying. In these situations, the code is likely provided in your group’s newsletter or on their website. When starting the hunt for insurance, you should pay more attention to these types of advertisements no matter what state you live in- Kentucky, Michigan, Mississippi, Missouri, Minnesota.
If you’re a member of more than one qualifying organization, it’s worth checking to see if the discount is the same or if one offers a better deal than the other. Most often, you will not be allowed to take both discounts. Another benefit is that your affiliated organization may receive some benefit in return from generating a new customer for the insurance company. By saving money, you can also benefit your organization. This would be the ultimate win-win!