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The Advantages of Group Auto Insurance


There are definite advantages to group auto insurance that makes it acceptable anywhere. Perks that come with it are hard to resist. This is a three-way win situation among the insurance company, the business entity or organization, and the employee or member, if this deal is availed. This article will discuss the different rewards that come with this kind of policy.

Understanding how group auto insurance works is an important first step. This policy is being offered to companies or organizations which extend the same to their employees or members as a privilege or a benefit. Anyone who partakes can save a few more bucks than applying for a personal insurance policy. Because this policy is a shared one, premiums are also divided, which makes a share cheaper than regular policy rates.

Depending on whose point of view it is, here are the advantages of group auto insurance:

  1. Participating in this plan is never mandatory. Employees or members cannot be obliged to sign-up only because a company or organization insists that they do so. A client can choose to join and later opt-out if they find this does not fit their needs without hurting others who are part of this entire policy. They may also choose to keep their personal policy or ride on with the family’s insurance.
  2. A plus factor is the flexibility in payment terms. Insurance providers would allow group auto insurance members to a payment scheme most fitting to an individual’s financial capabilities – it could be monthly, quarterly, or annually. Some even offer zero interest and no miscellaneous charges.
  3. Insurance companies get to save on representation and overhead expenses because they need not talk to clients individually. It is enough to close the deal with a business owner or an organization’s core group. Time is also saved because they need not run background and credit investigation to applicants because the company or the organization most probably took care of that already. Since expenses are cut, insurance firms are able to offer this policy at a lower rate.
  4. For employees whose management offers this insurance, they will feel important and cared for. Because employees are happy, they become more productive which is altogether good for business. It is common for job seekers to respond to a job post by a company that provides insurance benefits.
  5. As an employer or organization head, all you need to do is say yes to this program, facilitate information dissemination by providing a form for employees to fill out and the insurance company will do the rest.

Clearly, the advantages outweigh disadvantages.