California Auto Insurance Blog

Group auto insurance can be a win-win-win situation for the insurer, business owner and employees.

With group auto insurance the company offers the policy to the employees as an added benefit. The premium employees pay can be subsidized from an already reduced rate because the group is given a corporate discount.

Advantages of group auto insurance:

Employees are not forced to accept the policy and the company cannot force the employees to enroll. Once enrolled, the employee can drop out of the program whenever he wishes. His unenrollment does not increase premiums for the rest of the group.
• The insurance company saves on aquisition and advertising expenses. There will be no need to underwrite each employee and do drivers license & credit checks because many companies already have the employee files. The cost savings are converted to discounts and insurance companies offer lower rates to members of the group.
• The employee’s pay is taken into consideration. Payment terms are made flexible. Premiums are automatically deducted from the salaries so the employee does not have to mail in payments. No finanncing interest rates or miscellaneous amounts are charged.
• The company makes its employees happy, rewards them with a good benefit and creates goodwill to the company. It will help the company retain quality employees.
• When the business owner agrees to group auto insurance, his company also saves on it’s auto insurance cost.