Auto Insurance for Union Members (Discounts + Coverage)

Car insurance for union members can be discounted by up to to 25% off your rates. Affinity and group union discounts are available from top insurance companies, and government unions may qualify for additional discounts.

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Mathew B. Sims is Editor-in-Chief and has authored, edited, and contributed to several books. He has been working in the insurance industry ensuring content is accurate for consumers who are searching for the best policies and rates...

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Dan Walker graduated with a BS in Administrative Management in 2005 and has been working in his family’s insurance agency, FCI Agency, for 15 years (BBB A+). He is licensed as an agent to write property and casualty insurance...

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Reviewed byDaniel Walker
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UPDATED: May 19, 2020

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People across the world join unions for better work experience, better economic options, and saving money on goods and services. What about auto insurance? Does your union membership get you an auto insurance discount? You’d love to save money but don’t have time for research labor union insurance.

We can help with that. We’ve gathered everything you need to know about auto insurance for union members right here.

We’ll discuss what sort of car insurance discounts are available to union members, including affinity discounts and union car insurance group plans.

Do you want to see some auto insurance rates and compare union discounts right away? Compare auto insurance options where you live. Just enter your ZIP code into our free comparison tool above

Auto Insurance Discounts Available to Union Members

Anyone who drives a car or other type of vehicle needs insurance. Even in Vermont, a state that tries to keep insurance policies reasonable, costs can be high without discounts. Union members may be thrilled to discover that there are individual policies designed for them.

Union members possess a lot of purchasing power. So it should come as no surprise that an insurance company would market toward these members.

Devising discounted rates for qualifying, due-paying trade union members helps auto insurance companies sell their policies.

In other words, these union car insurance policies cover the fleet operating under the banner of the local unionized trucking company.

Such policies do exist but reflect something a bit different. They fall under the header of commercial auto insurance and union members who wish to purchase a policy for their vehicles would be acquiring traditional non-commercial insurance at a lowered rate.

A slight amount of comparison shopping will find the best rates for union discounts on auto insurance. What types of auto insurance discounts are usually available to policyholders? Let’s examine a general list of car insurance discounts that are available to policyholders and possibly union members.

General Auto Insurance Discounts
Discount NameDiscount Percentage
Usage or low-mileage2%
Paperless3%
Anti-theft5–20%
Bundled (multi-policy)5–10%
Homeowner5–15%
Paid-in-full5–10%
Accident-free5%
Emergency road assistance5%
Safety; passive restraint and airbag5%
Students away from home7–30%
Driver Training8–10%
Multi-car10–25%
Anti-lock brakes10%
Defensive driving course10%
Early signing/renewal10%
Green/hybrid car10%
New car10%
Good student15–25%
Customer Loyalty15–25%
Senior15–35%
Military15% on base, 90% for deployed
Good or safe driver20%
Affiliation or "affinity"25%
Auto-pay$45–$50 / year
Low income or occupationVaries
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The eligibility for each discount varies, but auto insurance companies can access eligibility during the quote process. A union is likely to go with the same company. Auto insurance companies will likely enroll union members under policies similar to affinity groups.

It’s like a multi-policy or multi-vehicle discount except there are collection policyholders from the same organization. The best way to know how these policies affect your paychecks is to review the auto insurance policy details from the employer or union membership information.

The effort should pay rewards for those who cut their premium costs down. Online comparison shopping reduces the amount of effort quite a bit. There’s even a Costco membership union discount so make sure to check for discounts even beyond just auto insurance.

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How do discounts work on union auto insurance?

Discounts are essential when saving money on auto insurance. As you’ve seen with the general discounts, annual rates can decrease if you’re eligible for discounts.

How do they work? Let’s use the top major auto insurance companies as an example of how union members can save money on auto insurance. Since the union discount is not in our general discount table, let’s use the affiliation discount percent as an example.

Affiliation Discount on Average Annual Auto Insurance Rates
CompaniesAverage Annual RateAffiliation
Discount (25%)
Average Annual Rates
with Discount Applied
USAA$2,537$634$1,903
Geico$3,214$804$2,411
State Farm$3,260$815$2,445
American Family$3,443$861$2,582
Nationwide$3,450$863$2,588
Progressive$4,036$1,009$3,027
Farmers$4,194$1,049$3,146
Travelers$4,435$1,109$3,326
Allstate$4,888$1,222$3,666
Liberty Mutual$6,073$1,518$4,555
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These are general quotes from the top auto insurance companies in the country. It shows how auto insurance discounts can apply to union members.

Each quote process is different, so the rates presented in the table may be more or less than the personal quote you get from an auto insurance company. However, you’ll save money on auto insurance once you’re found eligible to receive discounts.

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Auto Insurance Costs for Union Members

Who has the cheapest auto insurance? And can union members save more money on auto insurance? We can determine that by comparing a few statistics and general auto insurance policy quotes.

This section is thorough, so buckle up for the next few sections. We’ll cover auto insurance rates based on factors that determine auto insurance, general auto insurance coverage rates, and how union members’ wages are affected by auto insurance.

How do age and gender affect auto insurance rates?

If you’re getting an auto insurance policy with a company that your union has recommended, be aware that the auto insurance company will still consider factors that determine auto insurance rates. Therefore, your age and gender will be a factor in determining how much your policy will be.

In states like California and North Carolina, however, your gender won’t be a factor, but your age will be. How much is auto insurance based on age and gender? Let’s examine the average annual rate of auto insurance based on those demographics.

Average Annual Auto Insurance Rates Based on Age, Gender, and Marital Status
Age, Gender, and Marital StatusAverage
Married 60-year old female$2,243
Married 60-year old male$2,308
Married 35-year old male$2,446
Married 35-year old female$2,449
Single 25-year old female$2,703
Single 25-year old male$2,889
Single 17-year old female$7,559
Single 17-year old male$9,028
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Marital status is another factor that auto insurance companies factor into rates. It appears that auto insurance companies associate risk with marital status. Age, gender, and marital status are factors that go into an auto insurance plan. Based on the current demographic of average annual rates, 17-year-old drivers pay the most in auto insurance.

Also, male drivers pay more than female drivers. The reason why males pay more for auto insurance is that male drivers have a higher risk of getting into a car accident. A single driver will take more risks than a married driver, thus giving them a more expensive annual rate for auto insurance.

How does driving record determine auto insurance rates?

Your driving record is another main factor when determining auto insurance rates. Regardless of union membership, auto insurance companies will want to know if you’ve ever had a speeding violation, a DUI/DWI offense, or an accident.

As a union member, you’ll receive a discount for membership, but you may find yourself in the high-risk bracket if you have traffic violations and accidents on your driving record.

Here are the average annual rates for auto insurance based on driving records.

Average Annual Auto Insurance Rates Based on Driving Record
Driving RecordAverage Annual Rates
Clean record$3,124
With one speeding violation$3,669
With one accident$4,100
With one DUI$4,920
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Of course, the cheapest annual rate is available for those who have a clean driving record. The second cheapest is a speeding violation. Some auto insurance companies won’t increase your average annual rate due to a speeding violation. However, accidents and DUI/DWI cause the most expensive increases in auto insurance.

Too many violations or accidents can result in a policyholder pursuing insurance options such as an SR-22. It’s best to avoid this as much as possible.

Is auto insurance cheaper if you don’t drive your car much?

Union members who live in a state where public transportation is more common than driving their motor vehicle will likely find cheaper rates for auto insurance.

During the quote process, auto insurance companies will ask how many miles you’ll travel during the duration of the policy. Let’s examine the average annual rates based on commute mileage.

Average Annual Auto Insurance Rates Based on Commute Mileage
Estimated Commute MileageAverage Annual Rates
10-mile commute/ 6,000 annual mileage$3,911
25-mile commute/12,000 annual mileage$3,996
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The more miles you drive, the more expensive the annual rate. Some auto insurance companies will issue the same annual rates despite the miles traveled during the policy. Annual rates are adjusted based on the make and model year of your vehicle as well.

What are the auto insurance coverages available for union members?

Union members who are policyholders are customers, just like any other motorist searching for auto insurance. Depending on the company, a union member may be eligible for all coverages. The basic coverages for policyholders are liability, collision, and comprehensive.

Liability coverage is a minimum coverage requirement that compensates a no-fault driver if you (an at-fault driver) are in an accident. Liability has two factors: bodily injury liability and property damage liability.

Bodily injury liability pays for injuries that occurred during an accident, while property damage liability covers the cost of damage caused by an accident.

Collision coverage will pay for property damage regardless of who is at fault. Comprehensive coverage, on the other hand, pays for damage to a motor vehicle that doesn’t involve a collision. Comprehensive insurance will cover costs from vehicular fire, vandalism, fire, storms, falling objects, vehicle theft, and other accidents not involving a collision with another vehicle.

If you need all three coverages, an auto insurance company may suggest enrolling in full coverage, which is the combination of liability, collision, and comprehensive coverages. In addition to the basic coverage, auto insurance providers may provide more coverage, such as personal injury protection and medical payments.

The National Association of Insurance Commissioners (NAIC) has recently posted the national average rates for liability, collision, comprehensive, and full coverage. Let’s have a look at how much they are.

Average Annual Auto Insurance Rates by Coverage
Coverage SummaryCoverage Rates
Liability$611
Collision$363
Comprehensive$160
Full$1,134
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Full coverage is the most expensive in the table, but that’s because it’s the combined total of all other basic coverages. Liability is the second most costly because liability has coverage limits that cover bodily injury and property damage.

Expect auto insurance rates to increase when you get other coverages such as uninsured/underinsured motorist coverage, rental reimbursement, roadside assistance, and other perks.

How can auto insurance rates affect a union member’s income?

In addition to the number of employees in the U.S. Bureau of Labor Statistics report, there is data that lists the median weekly income of union workers, employees with union representation, and employees without any union affiliation.

To better understand how we’ll cover this section, we’ll take a look at median weekly income and estimate the monthly and annual income. Before you continue, let’s explain what a median weekly income means. Median weekly income shows the salary of individuals who are between the low-income earners and high-income earners. Average income represents a collective factored into one value.

For now, let’s take a look at the median weekly income.

Median Weekly Income of U.S. Employees
U.S. EmployeesU.S. Employee
Average Weekly Income
Union Member
Median Weekly Income
Represented by Union
Median Weekly Income
Non-Union Affiliate
Median Weekly Income
Female$821$1,018$1,004$792
Male$1,007$1,147$1,139$986
All U.S. Employees$917$1,095$1,082$892
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Union members earn more than employees represented by unions and employees who aren’t in unions at all. Remember, these incomes weekly representations of income. So the estimated monthly income and annual income will give you a better idea of how auto insurance affects income.

Here’s another data table that shows the estimate of monthly and annual income of union members based on statistics from the Bureau of Labor Statistics.

Median Incomes of Union Members
Union MembersMedian
Weekly Income
Estimated
Monthly Income
Estimated
Annual Income
Female$1,018$4,072$48,864
Male$1,147$4,588$55,056
All$1,095$4,380$52,560
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There’s a wage disparity of about $6,000 between male and female union members. But the discrepancy in income doesn’t show the auto insurance as a percent of income.

To find auto insurance as a percent of income, divide the average cost of auto insurance into annual income. The average annual price for auto insurance is $3,959. The average annual rate for auto insurance varies by company, U.S. state, and discounts applied to a policy.

First, let’s look at how auto insurance as a percent of income affects the estimated annual income of union members.

Auto Insurance as a Percent of Income for Union Members
Union MembersEstimated Median
Annual Income
Insurance as a
Percent of Income
Female$48,8648.10%
Male$55,0567.19%
All$52,5607.53%
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Although females pay less for auto insurance, they spend more as a percentage of income than males. Most employees pay about 8 percent of their income for auto insurance per year based on the estimated median income of those who work in the United States.

Group Discounts on Auto Insurance

One reason insurance companies can offer reduced rates on union auto insurance is because union members facilitate a vast bulk of policy purchases. In other words, an electrician’s union has a deal with a particular insurance company to promote union health insurance and union auto insurance.

Since the union is assisting with the sale of numerous policies, the insurance company is selling plans in bulk. Reducing the cost per policy is not a financial burden for the insurance company since premium payments from a large number of members are generated per year.

Drivers who might not have the best credit score will appreciate the lowered rates group discounts allow.

Speaking of credit score, let’s review the average annual rates based on credit. Here’s a summary of those rates.

Average Annual Auto Insurance Rates by Credit History
Credit HistoryAverage Annual Rates
Good$3,166
Fair$3,687
Poor$5,151
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You may be wondering why auto insurance issue more expensive rates for those with fair and poor credit. Auto insurance companies correlate fair and poor credit ratings to risk due to annual statistics.

What is a union?

We’ve talked about what discounts are available for unions, let’s discuss what unions are.

A union is an organized group of workers in a specific profession who unites to make decisions about conditions affecting their place of work.

These decisions often involve health benefits, pension, educational discounts, and even auto insurance. The purpose of unions is to protect the rights and interests of people working in a specific trade or profession. Unions help bring economic justice to the workplace.

There are several unions around the world, such as health care unions and public service unions. The most popular are the manufacturing unions. Unions support their members by negotiating benefits, hours, and other aspects that result in the best interest of their members.

Unions, also known as labor unions or trade unions, are designed to protect the interest, improve wages, working hours, and working conditions for its members. Let’s watch a video that goes in-depth on what labor unions are and how they work.

How can union members benefit from union car insurance policies? We mentioned how unions make decisions in the best interest of their members. Auto insurance is no different.

Because unions have many members, auto insurance companies who have relationships with unions can provide discounts to members. There are also insurance companies that were created by union members for union members, like AFSCME auto insurance.

Why provide a discount to union members? Individuals who represent a union will have an arrangement with an auto insurance company about how many members are within a union. The union will encourage its members to do business with a chosen auto insurance provider.

While under union membership, you can receive a discount.

There is also a group, Union Privilege, a non-profit founded by the AFL-CIO in 1986 to help provide programs and benefits to union members. This includes Union Plus benefits, which are insurance plans tailored to union members and their families, and union discounts, including Union Plus Abenity discounts. Additionally there are Union Plus shopping discounts, Union Plus disability insurance, and even a mobile Union Plus app so you can access benefits, information, and Union Plus shopping any time.

What’s the difference between a union and an affinity group?

Affinity groups, also known as resource groups, are organized employee groups based on social identity, shared characteristics, or life experiences. These employee groups form to include and protect classes, such as age, disability, gender, nationality, race, sexual orientation, and veteran status.

An example of an affinity group would be a group composed of African-American staff in a hospital system, which serves as diversity awareness and initiative of that local or national hospital.

Private employers don’t have to have affinity groups, but most choose to acknowledge and support them. Support of affinity groups brings benefits to an organization and makes them more versatile in terms of business outreach.

Unions are focused on members in a specific profession. Although there may be some questions about eligibility, unions have a more general design of membership, so don’t worry about criteria outside of employment.

Why do people join unions?

People join unions for a variety of reasons, such as job security, better wages, and comprehensive health insurance. When unions go for auto insurance, the auto insurance company may issue discounts to all union members due to the number of people that sign up at once.

Ask your employer if they’re represented by a union or have any discounts related to union membership. Everyone likes to save money. Therefore, the value of a reliable insurance policy will attract union presidents who want to provide a reliable service to their members.

How many people are in unions?

In the U.S. Bureau of Labor Statistics 2020 report, there were 141.7 million employees in the United States in 2019. The bureau estimated that 73.35 million are males 16 and older, and 68.39 million are females 16 and older.

Here is a summary of the union members’ percentage in the total number of employees in the country.

U.S. Bureau of Labor Statistics Number of Union Members (2019)
SummaryNumber of Union MembersPercent of EmployedNumber of Employed
Represented by Unions
Percent of Employed
with Union Representation
Female Employees6,624,0009.70%7,538,00011.00%
Male Employees7,950,00010.80%8,845,00012.10%
Total Employees14,574,00010.30%16,383,00011.60%
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Most union members and those represented by unions are male employees. Some employees in the United States are not union members, but unions represent them. The number of these employees is much higher than employees with union membership.

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Government Unions and Benefits

Unions can be private or public. Public unions are those associated with jobs in a city, state, or federal government.

Auto insurance policies are not the only options allowing government workers to save money. The policies might come with several added benefits that further help cut down expenses. Discounts on multi-car insurance policies are possible as well, depending on the policy. Family members may be able to benefit from these types of policies as well.

Going Beyond the Basic Policy

Union workers don’t always follow a standard 9-to-5 work schedule. They may work late hours or holidays. Workers may put in far more than 40 hours per week. All that time on the road during odd hours might put even the most careful driver at risk. The state minimum might be shallow, so most drivers go with the minimum amount.

In Texas, the minimum amounts for personal liability are $30,000 for each injured person, with a total of $60,000 per accident. The minimum on property damage per accident is $25,000. Those numbers are meager. Paying a little more to increase those amounts could be worth it for someone always rushing to work on those Lone Star highways seven days a week. Perhaps paying extra for the maximum uninsured motorist coverage is worth the investment.

With a union member insurance policy, even the more extensive policies could end up being very affordable.

The best insurance policy is one that protects a driver from financial losses under several circumstances. Significant policies don’t need to come at great prices. Union members who take advantage of discounted rates can attest to this fact.

Compare auto insurance rates today. It’s fast and easy to see the rates of top insurers side-by-side, even companies with union discounts, when you use our free comparison tool.

 

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