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A better insight into group auto insurance


Group auto insurance is essentially a marketing tool that is used by insurers. It benefits the insurer, employer, and business owners who avail it. This is a win-win situation for most parties involved.

Some advantages of procuring group insurance:

  • Attractive coverage
  • Affordable price

Group insurance is offered to organizations, companies, and even to large families. In most of the organizations group insurance is more like a benefit that is given to employees. It is the business owner and sometimes the HR Department that normally manages this part. Employees are expected to pay a relatively low premium since the company subsidizes the cost. This is possible because the insurers offer discounts or bulk rates on these policies.

No employee can be forced to join in this type of a plan and it is completely optional. But due to all the numerous benefits that come with this plan employees normally opt for this cover. Employees may also opt out of this plan at any given point in time or if the employee feels that this cover will be insufficient to meet the coverage he/she requires. In such an event, there would be no repercussions on the rest of the members or on the policy cover as a whole.

These extra benefits and discounts can be offered by the insurance company as they are able to cut down on their overheads or the representation expenses. Here, they don’t have to assess nor do a background check on each and every applicant since the company would have already done that. So, these savings are then used to provide better services or to provide discounts.

Since this type of coverage offers so many benefits and due to the flexibility of the payment terms, the employees never hesitate to join in. The payment schemes that are offered by the company to all the employees, is really affordable. Premium costs are also very less and are deducted from the salaries. This helps employees get the required coverage without having to actually pay for it out of their pockets. Some of the interest rates and other additional charges are generally waived off in these schemes.

In such schemes, the employees, workers, and the insurers tend to benefit. The workforce is happy and feels rewarded and this will in turn help the organization achieve its goals. Business owners only have to coordinate with the insurer through their HR Department. So, in a way, it is a win-win situation for everyone involved.