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Group Auto Insurance Benefits


If offering group auto insurance is just a marketing technique by insurance companies, then it was a good decision as there is a three-way win situation for the insurer, business owner and employees who avail of it. The program seems irresistible and beneficial in all aspects.

How group auto insurance works is simple. The policy is offered to companies. It is also offered to big and known organizations, even big families but this article will focus on coverage for companies. The company, through the business owner or Human Resources Department becomes the liaison and offers the product to the employees as a work benefit. The premium paid for by the employees can be subsidized but the rate is lower already as it is because the company is given huge discounts or bulk rates.

Here is a list of advantages group auto insurance:

•    An employee is never forced to participate in the plan and is purely optional. The company simply cannot oblige the employees to sign-up. But with the benefits, employees will surely consider it. Once signed-up, it would be fine for the employee to opt-out if he finds that the program does not fit his needs. His pull-out also does not affect the rest of its members.

•    The insurance company can save big on overhead and representation expenses. There will be no need to assess each employee anymore and do background & credit checks because the company already has the files to show about the employees. The saved costs are then converted to discounts and insurance companies are able to lower rates.

•    The employee’s capacity to pay is taken into consideration. Payment terms are made flexible with the schemes made available. Premiums are automatically and minimally deducted from the salaries so the employee does not really feel the weight of the expense. The company makes arrangements with the insurer in such a way that even in this scheme, no interest rates or miscellaneous amounts are charged.

•    The company makes its employees feel happy, rewarded and satisfied when it offers this kind of benefit because it means they value their employees’ safety and security. The employee in turn will do better in his job.

•    When the business owner agrees to group auto insurance, his company also saves on costs. The insurance company will take care of everything else while coordinating with the HR Department.

The disadvantages, if any, are not highlighted anymore because the positive side is heavier that all parties do not think of those at all. This program works most of the time and it nurtures better employer-employee relationships.