Car insurance companies offer packages and promos to its clients to give incentive to the loyalty and continuing support of its clients. One of the most effective promos widely used today is group auto insurance. This policy offers lower premium rates for policy holders in groups. This promo is usually availed by companies as a cost efficient system. Members of a group insurance are equally entitled to monetary compensations in the event of accidents and accident mishaps. This marketing strategy is solely designed to cater the needs of more than one policy shopper.
Group insurance is not only available to profit maximizing business firms; this type of insurance is also available for non profit organizations. Policy shoppers can opt to purchase their policy from an already existing group, if their current does not provide group auto insurance. Civic organizations, clubs and other social groups mostly offer this type to their members.
Group insurance is considered to be a win- win indemnity for every party involved in it. Policy holders pay less premium rates. Indemnity companies pay less administrative costs. The cost of collecting data for the policy accounts are greatly decreased since data are already centralized in the existing groups. Passing the cost cut down, the policy holders will have to pay less premium rates to give incentive to the availability of data.
Members of a group indemnity share the extensiveness and comprehensiveness of the whole indemnity policy. Surprisingly, auto indemnity groups do not compel their members to stay in the group. Group indemnity policy holders can come and go as they please. No business firm or company is mandated by the law to compel its employees to join their existing group indemnity. The attractiveness of the premium rates and benefits of group indemnity is the only reason why a lot of employees join it.
Group indemnity also allows members of the special sectors to enroll in it. Teenagers and senior citizens can use the collective rate of the group indemnity to enroll for a car policy with relatively lower rates as compared if they will apply on their own. Members of a group insurance can individually choose their payment schemes from monthly payments to annual payments.
Loyalty and rewards attract most companies and organizations in enrolling for group insurance. Companies and organizations are able to mass up their numbers because of the benefits of this type of indemnity. Indemnity benefits are usually looked into by applicants and members. Having a good one in a way is insuring the growth of the company or organization.