What is group insurance?

By HUB SmartCoverage Team on October 19th, 2017

No one likes paying more than they have to, which is why people are always on the hunt for ways to save on insurance. If you know the right things to look for, and the right questions to ask, there are a number of discounts available out there, including group insurance packages. If you qualify for a group policy, it’s a good way to save some money.

Group insurance is basically a bulk insurance policy contributed towards by multiple people. Many big name providers have affiliates or subsidiaries that specialize in offering discounted group insurance rates to those who are a part of specific unions, alumni or corporations.

What are the benefits to group insurance?

Group plans usually include multiple policies for each participating individual. For example, a company that has a relationship with an insurance company can enable its employees to receive a small discount on both their home and auto policies. The insurance company is willing to offer discounts because their relationship with the company is attracting new clients in volume, and for multiple policies. 

In these cases, group insurance also forces you to bundle your home and auto insurance with the same provider, which is another way to save. So by locking yourself in with a group plan, not only are you saving money one your two most important insurance needs, but you are also gaining the convenience of having both of your main policies under one metaphorical roof. In most cases, you’ll also be eligible for the same benefits (such as accident forgiveness, or loyalty discounts) that you would receive when signing up normally.

How do you qualify for it?

How do you know whether or not you’re eligible to get in on a group policy? A good step would be to ask your insurance broker if your provider, or their affiliates, offer any group insurance plans. If they do, then see if you are a part of any union, association, alumni, or company that does business with your insurer.

Not all insurers deal with the same groups, and not all offer group insurance of any kind. If your current insurer has no association with any groups you’re a part of, it may be worth checking with your broker to see whether another insurance provider maintains a relationship. If group insurance is an option for you, it’s a great way to shave a little off your premiums each month.

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