Car Insurance Basics

Benefits Employees Enjoy from Group Car Insurance

March 10, 2015

One of the benefits many companies offer their employees is group car insurance, usually negotiated with an insurance company. Insurance companies usually give corporate rates for car insurance to get bulk business. Such policies are easy to administer and the relative risks of offering car insurance to a group of employees are lower that when dealing with the public. Pooled car insurance can be a viable way of handling your car insurance needs. As an employee, some of the benefits you will experience buy using group car insurance are as follows.

1. You will Pay Lower Premiums

Almost all car insurance policies negotiated by employers are cheaper than the rates one would pay for the same car if the policy was personal. The logic is straightforward. The costs of business are lower for insurance companies when they deal with a large pool of cars compared to when they deal with individuals. One sales representative talks to one company representative and seals a deal to insure multiple cars. This takes much less time, and yields a lot more business for the insurance company. Some of the saved costs are reverted to you through lower premiums.

Related: How to effectively administer your Company’s Corporate Motor Insurance Scheme

2. You will Save Time Spent Window Shopping for Car Insurance

The process of shopping for affordable car insurance can be daunting if you are doing it yourself. The process involves contacting myriad insurance companies, filling many forms, and then comparing features in all the policies. Unless you are using an automated quoting system such as the one offered by insureafrika, you could spend hours in unproductive shopping. When your employer handles all these needs for you, it saves you time, which you can use for more productive tasks.

3. Making Claims is Easy

Car insurance arrangements managed by your employer eases the process of making claims. In many cases, you relevant department follows up claims on your behalf and facilitates the process of payments for you. This can be very useful of you went through a traumatic experience such as losing your car to carjackers, or being involved in a serious accident. Your employer will shield you from the layers of red tape that sometimes accompany insurance claims (usually with good reasons). Having someone look out for you when dealing with car insurance claims can go a long way in making the process much easier to handle.

Related: How your Organization Can Get the Most Value from Group Motor Insurance

4. You will have Access to Flexible Premium Payment Plans

Unlike people who deal directly with their insurers, corporate motor insurance arrangements can make it easy for you to access very affordable premium financing. Good companies pay premiums on behalf of their employees and then recover the money slowly on monthly basis. When dealing directly with an insurance company, you can only get a few months extension when it comes to processing your premiums. The benefit of a more comfortable payment plan only kicks in if your employer also handles your car insurance needs. 

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