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How Group Auto Insurance Works


If you drive a car and get into one of those vehicular accidents, you don’t exactly worry yourself about paying for the mishap. Then a month later, the bills start piling up. But if you have group auto insurance because you are an employee of a businesses firm or an organization, it makes a whole lot of difference in your finances. Understand how this type of insurance works and how it gives you a lot of peace of mind just knowing that you are covered.

One can avail of group auto insurance in two ways:

Companies – Big and small businesses acquire group auto insurance plans for their employees, taking advantage of competitive rates.

Organizations – If your employer did not bother to get you group auto insurance coverage, you can become a member of an organization that does. The Lions Club, Kiwanis, or any of those civic groups may have this kind of insurance. It will be like hitting two birds with one stone: you take part in group that gives you a chance to help out the community, while getting group auto insurance. 

Even religious organizations of various sects may offer group auto insurance as well.

You may say that you do not need group auto insurance because your individual insurance plan has everything covered, but it might do you good to go over the advantages of group insurance.

You can choose to have yourself covered by group insurance, and just as easily cancel it whenever you want to, for whatever reason. You may think it is redundant because you already have an individual plan or a family member’s plan, you can tell your insurer that you want to leave.

You will benefit from lower insurance rates by being a member of a group or organization. Insurance providers cut down on marketing and administrative costs by having to deal with just your employer or organization as a group. Insurers can forget about conducting background checks, because your group does the checking for them before you were signed up to join. This allows the insurer to offer lower premiums.

You can also avail of flexible payment terms. Not every member of a group plan gets to pay premiums in a similar manner. Majority of group auto insurance plans have flexible terms of payment that do not even have service or interest charges. You can pay quarterly, twice a year or month. It all depends on you.