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Non Profit Group Auto Insurance

Non profit group auto insurance is an intriguing and attractive option that can add tremendous value to membership in any non profit group or organization. Groups who are working to attract new members and retain their current membership need to find new and innovative ways to deliver value for their members. One of the ways non profit groups can reward their members for involvement is through group auto insurance membership. Non profit group auto insurance is an excellent option for group leaders and organizers to give their members added incentive without adding to group administrative burdens or expenses.

Group Members Free to Choose

One of the primary advantages of non profit auto insurance group membership is the fact that it offers flexibility. Group members in most cases are not required to participate. This is in contrast with a lot of group insurance options among businesses and organizations, which often require full membership for group rates to be effective. The ability to offer this type of option for your members is a great way of saying thank you to them for their participation.

In a non profit group setting, often the majority of participants are unpaid volunteers. Sometimes all participants are unpaid. They put their time and effort into their service project with no thought of being compensated. One example is in churches, synagogues and mosques. Often the leader of these religious organizations is the only one on payroll, but in truth these groups rely heavily on volunteer labor in order for the organization to function. They do behind the scenes work, including taking care of the physical buildings, dealing with municipalities, working to take care of the group membership and other assorted duties. These volunteers do their work selflessly with no thought of personal gain. Giving them a valuable option like group auto insurance membership is one way you can reward these tireless workers for their efforts.

The flexibility to decide whether or not to participate is the key to the way non profit group auto insurance works. Without any pressure on individual members to participate, the group is free to offer these types of incentives without fear of making anyone feel obligated. Members who are perfectly happy with their current auto insurance coverage do not have to think they are being forced to participate, which benefits everyone because each member can decide based strictly on need and personal preference.

Auto Groups Offer Flexible Payments

Another implicit advantage of many non profit group auto insurance plans is the payment flexibility it offers to members who choose to take advantage of membership in the group. One common aspect of a typical auto insurance policy is that the annual premium is essentially due at the outset of the policy, or by the first day of the coverage period. Auto insurance consumers who are financially incapable of paying the entire sum of their annual premium in advance of the coverage period are usually obligated to pay for the option of stretching out payments over the course of the life of the policy. In most cases, the more payments included in the payment plan, the more the auto insurance consumer has to pay in the way of service fees. This is a significant disadvantage to most auto insurance plans. Many consumers do not have the kind of cash flow needed to pay for six or twelve months' worth of coverage all at once, so they are relegated to take on the option of the payment plan, even though it costs them more money over the course of the coverage period.

This is where a significant common advantage of auto insurance group membership comes in. In exchange for the non profit group providing the auto insurance company with a large stable of customers, the provider in many cases will forego the normal practice of charging installment fees for customers who choose to pay for their insurance as they go through the coverage period, or those who simply have no other choice due to the realities of their economic circumstances. When you are given an opportunity to make payments in this manner without interest or penalty, you are essentially borrowing money from your own future cash flow at zero percent interest.

This is a huge advantage over many standard auto insurance plans. Insurers in many cases are willing to offer this enticement as a way to get more non profit group members to sign on for coverage. In this arrangement, both parties greatly benefit. On the auto insurance provider's end, the company wins because group members tend to demonstrate higher rates of retention and renewal over time than do customers in ordinary coverage circumstances.

From the perspective of the non profit group members, this arrangement is advantageous because of the obvious financial savings it provides, as well as the flexibility it gives to enrolled members to spend their money as they wish over the course of the period of enlisted auto coverage. But the flexibility of payments is not the only way non profit group auto insurance enrollees can benefit financially from their participation in these groups.

Bigger Groups Mean Bigger Savings

An additional and perhaps even more compelling way non profit group members can save by participating in an auto insurance group is simply through lower premium rates. This might be the best reason of all for group members to choose to take part in an auto insurance group. This type of setup favors cost savings for both the insured parties and for the auto insurance carrier.

Auto insurance providers who offer non profit groups the option of group auto insurance are able to do so because the arrangement brings mutual financial benefits. On the provider's end, the cost savings originate from at least a few different sources. For one thing, the mere existence of such a group essentially amounts to free advertising for the auto insurance company. Enrolled group members do the marketing for the provider. Auto insurance companies also save on administrative costs, with certain aspects of their customer service programs able to be accomplished in group settings. This allows these administrative tasks to be completed more efficiently and at a lower cost to the company.

But the main attraction for the company itself may be the way an auto insurance group modifies the risk the company takes on. A single car accident does not cost the insurance company as much in a group setting when viewed in light of all received premiums. In turn, this aspect is probably also a great source of cost savings for members. With risk spread out across the entire group, the effects of one car accident are minimized-the larger the group, the more this is the case.

Non profit auto insurance group membership has distinct advantages for both insurance providers and for group members. What's more, with no extra cost assigned to members and few extra administrative burdens added to insurance companies' responsibilities, there are very few drawbacks to this arrangement. If you are a member or a leader of a non profit group such as a rotary club or a church or temple, take a look at this coverage option.

 

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