Definition - What does Preferred Auto mean?
Preferred auto is a type of auto insurance that insurers only offer to drivers who have had no, or at least very few, accidents. It is called "preferred auto" because drivers who get this type of insurance are "preferred" by auto insurance companies. These favored policyholders typically pay the lowest premiums of any policyholder category that the insurance company offers.
Insuranceopedia explains Preferred Auto
Any driver who has a low risk of filing a claim is desirable for insurance companies. Drivers who wish to become eligible for preferred auto insurance can help their chances by following traffic laws, driving responsibly, and avoiding accidents. On the other end of the spectrum, drivers who get into a lot of accidents can be charged higher premiums for auto insurance. Since they represent a higher risk, they are likely to be more costly for insurance companies in the long run.
How Well Do You Know Your Life Insurance?
The more you know about life insurance, the better prepared you are to find the best coverage for you.
Whether you're just starting to look into life insurance coverage or you've carried a policy for years, there's always something to learn.