What does Preferred Auto mean? Read on to discover the definition & meaning of the term Preferred Auto - to help you better understand the language used in insurance policies.
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.
We hope the you have a better understanding of the meaning of Preferred Auto.