Are There Any Measurable Benefits Of Group Auto Insurance?


Group auto insurance is a marketing method orchestrated by insurance companies that provides benefits to the insurer, business owner and the employers who are availing it. To understand why we consider this technique as a win-win situation, keep reading.

The way group auto insurance is marketed is something that most of us could hardly resist. The benefits are numerous, coverage is attractive and above all, the price is affordable.

The concept behind group auto insurance is really that simple. It is offered to companies or organizations and even to families with a good number of members. However, in this issue, we’re going to focus group insurance offered to companies.

In most companies, offering group insurance comes as a work benefit. The business owner or the HR Department usually manages this offer. When it comes to the cost, the employee pays relatively low premiums because the company subsidizes part of the cost. This is because insurance companies offer these policies in bulk rates or discounts.

What Are The Advantages Of Using Group Auto Insurance?

Employees cannot be forced to join or participate in the plan. This is entirely optional. However, with all the benefits that one gets from group auto insurance, it’s not surprising that most employees will opt-in. It’s also possible to pull out anytime if the employee finds that his needs are not met in the said coverage. Membership removal will have no effects whatsoever to the other members or to the policy as a whole.

Extended benefits and discounted rates are possible because the insurance company can save a substantial amount of money by cutting its overhead or representation expenses. There’s no need to assess each applicant by doing background or credit checks because the company already did that long before. The saved costs are then converted to enhance services or as price relief.

This is probably the reason why employees will not hesitate to join in, due to the flexible payment terms. The company can provide affordable payment schemes to all of its employees. Premiums are usually deducted very minimally from their salaries, allowing their employees to enjoy the coverage without feeling the weight of paying for it. Company to company dealings can benefit people as the usual interest rates or any miscellaneous charges are waived even in this scheme.

The care that the company is extending to its employees will be paid upon through better work performance.  Happy, rewarded and satisfied workforce will surely make a difference, helping the company reach its goals year after year. 

Since the insurance company will take care of everything, the business owner can further save on costs. All that is needed is the coordination between the HR and the insurance provider.

Although there are disadvantages with group auto insurance, but we don’t want to highlight any of them as the benefits outweigh them all. In fact, involved parties usually don’t talk about them anymore. Undoubtedly, programs such as this not only provide the needed coverage but also help nurture the relationship between the employer and employees.