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Guide to Group Auto Insurance

Group auto insurance in many cases is the most affordable option for car insurance coverage for businesses and organizations. Group auto insurance lessens the effects of an accident on an insurance policy by essentially spreading out risk. Understanding group auto insurance and its benefits can help you to see how it can take some of the financial bite out of an accident or other auto claim.

Getting Group Auto Insurance Coverage

There are two basic ways to get group auto insurance coverage. As its name suggests, eligibility for this type of coverage is tied to group membership. The two types of groups who can benefit from enlisting in this coverage are company employees and members of organizations. Individuals who are part of either of these groups have unique access to some of the best rates available for their auto insurance coverage needs.

Companies who offer their employees the chance to participate in group auto insurance are offering one of the very best benefits an employee can enjoy as one of the fruits of a job. A group auto coverage plan gives company employees access to insurance coverage and rates they normally would not be able to find anywhere on their own.

Likewise, individuals who are members of groups and organizations offering group car insurance benefits stand to gain from inclusion in such policies. Those who have some sort of access to this type of auto insurance policy through a group or organization they belong to are well-advised to take advantage of the great coverage and tremendous savings group auto insurance can provide. It is even suggested, by a lot of experts monitoring policy pricing across the industry, that drivers who are not members of an organization with access to group auto insurance benefits should find such an organization and join it. Some examples of organizations which may have such access can include churches, temples and mosques; rotary clubs; or community service organizations [1].

Group Auto Insurance Benefits

There are many benefits to car owners who choose to participate in group car insurance coverage. As already mentioned, participations typically leads to significant cost savings for excellent auto insurance coverage. Auto coverage providers are able to save money on their end by working with larger groups to provide policies in a few different ways. First of all, their administrative and marketing costs are cut down when the group essentially comes to them for coverage and not the other way around. Second, they can forego some of the standard background checks or screening processes they ordinarily have to administer for many of these groups, because the onus is on the group leadership itself to take care of this detail. Because the auto insurance carriers themselves save so much money off the cost of simply being able to provide coverage, they can pass on some of this savings to group members and still see some financial benefits for themselves. This type of a relationship in financial terms is really mutually beneficial, with all parties gaining at no one else's expense. For a lot of drivers and insurers who choose to take part, this is a beautiful part of the arrangement.

Individuals who are positions of some authority or influence within organizations or businesses are well-advised to consider the benefits of getting set up with a group auto insurance plan. For business owners, adding a group auto insurance option can add a very attractive selling point for prospective employees. At little or no direct cost to the business, you can offer this additional added benefit of working for your company, which can give top producing employees another good reason to stick around and stay with you, decreasing turnover. Depending on your employee classification, you may even be able to personally enjoy the benefits of group membership yourself.

Leaders of organizations seeking ways to enhance the benefits of group membership can also utilize group auto insurance to boost the overall value of organization enrollment. This kind of extra added benefit can in many cases cause some individuals who may not otherwise join an organization to sign on, boosting the membership ledger and strengthening your organization.

Best of all for both business owners and organizational leaders working to add to the value of what they have to offer, membership in a group auto insurance plan adds essentially no paperwork or extra duties to your to-do list. Providing auto insurance companies do all the administrative work; usually you and your employees or members only have to fill out a form to get started.

Other Benefits of Group Membership

The low prices you will gain access to for your auto insurance protection are just the beginning in terms of the benefits you and fellow group members can enjoy with group auto insurance membership. Many companies and organizations do take advantage of this coverage option strictly due to the savings it helps them attain on their insurance rates. But the initial savings on the front end are no more important a benefit than the savings a member might witness in the aftermath of a claim.

In a typical personal auto insurance policy, if you are involved in an at-fault auto accident, you may see your rates significantly increase when your renewal time comes up. In some cases, you may even be non-renewed by your provider after your coverage period ends; or canceled after they pay out the necessary funds to handle your claim.

But when you are part of a large auto insurance group, the risk is spread out across all group members, so the impact of a single accident is significantly reduced. Since you are a member of a much larger group of insured drivers than, say, yourself and your wife or the two of you and a few teen drivers, one single accident by any one driver in your household will not have such a crippling effect on your rates as it would if you were only covered in a single family personal auto policy not tied to a larger group. Drivers who fall into high-risk categories such as young drivers or those with a history of accidents or moving violations can often benefit from inclusion in a group auto insurance plan, simply because the insurer's loss on any one single claim event is not so catastrophic to their own bottom line, so they can afford to be more forgiving in these matters for drivers who are a part of a larger group. This is particularly true as an auto insurance group gets bigger. The more members you have, the more leverage you will have for the protection of individual members and the maintenance of your overall rates.

Owners of growing businesses who have employees with families including younger drivers (or organizations with similar demographics), then, can truly stand to benefit from taking the first step and getting themselves into this type of auto coverage plan. If you are a business owner or organizational leader working with a limited budget and trying to find ways to improve your overall benefits package to attract or retain employees or members, group auto insurance membership is an excellent option well worth considering.

[1] http://www.finweb.com/insurance/how-group-auto-insurance-makes-an-accident-ok.html Retrieved 2010-01-03.

 

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