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 to help ensure liability coverage. third parties. Many, however, don’t take advantage of group insurance rates to help lower the amount they pay for coverage. One reason for this is that they don’t know they can qualify for group rates and pay the non-discounted rates quoted to them by the selected insurance broker, agent, or insurer. Group rates by themselves do not 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. Students from various educational institutions are also sometimes eligible. In fact, whether medium to large employers or associations offer these programs or not, most are eligible to have one if they wish 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 that the insurer offers. In most cases, a 10% to 30% discount off the insurer’s regular rates for auto or home insurance is considered normal.

Employers often look to group insurance programs as a way to reward employees for their continued loyalty or entice prospective employees to work for them. Implementing a program is relatively easy, as the sponsoring organization is only responsible for helping distribute marketing materials as needed; this usually takes the form of providing distribution lists or facilitating actual deliveries. There is rarely any cost to the organization for offering a group-sponsored program. Participation by employees or members of the organization is strictly voluntary and there are usually no minimum participation requirements.

Characteristics of the 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 of age. It is normally a requirement that employees be full-time or permanent part-time. Spouses and dependent children of sponsoring employees/members are also generally eligible to participate in group insurance programs. Although sponsors may not engage 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, mailing campaigns, email campaigns, and websites. .

Visit the Marsh Private Client Services website for information on auto or home insurance.