Most people need a combination of home / renters and auto insurance to protect their assets, comply with government regulations, meet loan or lease terms, or help ensure liability coverage. . However, many do not take advantage of group insurance rates to help reduce the amount they pay for coverage. One of the reasons for this is that they do not know that they can qualify for group rates and pay the undiscounted rates quoted to them by their selected broker, agent or insurer. Group rates do not in themselves guarantee lower premiums, however, they are a good and logical starting point for your personal rate comparison.
Finding out if you are eligible for group insurance rates is usually a matter of doing some basic research. Many employers and associations sponsor group insurance plans for their employees or members as a voluntary benefit. Sometimes students from various educational institutions are also eligible. In fact, whether or not medium to large employers or associations offer these programs, most are eligible to have one if they want to sponsor it.
Why group insurance programs?
If you are an individual, the most obvious benefit of a group insurance program is the discounted premium rate offered by the insurer. In most cases, a 10% to 30% discount on the usual insurer rates for car or home insurance is considered normal.
Employers often view group insurance programs as a way to reward employees for their continued loyalty or to entice potential employees to work for them. Implementing a program is relatively easy and the sponsoring organization is only responsible for helping distribute marketing materials as needed; this generally takes the form of providing distribution lists or facilitating actual deliveries. There is seldom a cost to the organization for offering a group sponsored program. Participation by employees or members of the organization is strictly voluntary and there are generally no minimum participation requirements.
Characteristics of group insurance programs
In general, organizations that qualify for group insurance programs have a minimum of 250 employees / members, with the majority being over 25 years old. It is normally a requirement that employees be full-time or part-time permanent. Spouses and dependent children of sponsoring employees / members are also generally eligible to participate in group insurance programs. Although sponsors cannot participate in the authorized activity of actively selling the program, they must agree to a marketing plan and help facilitate the distribution of marketing materials to launch the program. The marketing plan will differ from sponsor to sponsor, but plan elements could typically include announcement letters, print and electronic brochures, posters, newsletter articles, on-site seminars, mail campaigns, email campaigns, and websites. .
Visit Marsh’s Private Customer Services website for auto or home insurance information.
