When considering your options for auto and home insurance, choosing a plan through your employer's discount platform can offer some significant advantages. But is it the best choice for you? Let's explore the pros and cons to help you make an informed decision.
Key Takeaways:
Utilizing employee discounts can save you up to $1,092 just on auto & home insurance!
- One in every ten homes gets damaged by a natural disaster every year
- $4,700: The average cost of a repairable collision claim in the U.S.
- 65% of employees who were offered home and auto insurance through their employer found the rates to be competitive or better than individual market rates
But first - how often should you reconsider your existing insurance policies? Experts say it’s good to reassess your needs and coverage at least once a year, or more depending on your needs.
Insurance: More Important Now than Ever Before
Recent natural disasters underline the importance of having comprehensive insurance. The damage from Hurricane Helene, a deadly Category 4 Hurricane that hit the coast of Florida and impacted many other areas in the southeast, will cost homeowners an estimated $47 billion, says CNN (1). Similarly, The Guardian reports that Hurricane Milton, which followed Helene by just a few days, caused another $50 billion+ in damage (2).
According to a CoreLogic study, one in every ten homes gets damaged by a natural disaster every year, so it is important to stay up-to-date on insurance (3). “If a disaster strikes, having insurance for your home is the best way to ensure you have the financial resources needed to help repair, rebuild, or replace whatever has been lost or damaged.” - FEMA (4)
Many standard policies do not include damage caused by flooding, earthquakes, mudflows, and landslides. Consider getting supplemental insurance if you reside in an area at risk for additional damage.
It’s not just home insurance. The average cost of a repairable collision claim in the U.S. is over $4,700 (5) - which is just a drop in the bucket of the reported $340 billion in damages caused by car accidents every year (6).
How should you compare options to make sure you’re getting the best insurance coverage and rate? Learn more with “How to Compare Side-by-Side Home & Auto Insurance Rates.”
Understanding the Benefits of Employer Discount Insurance
Group Discounts
One of the most compelling reasons to opt for insurance through your employer is the benefit of group discounts. By pooling together with other employees, you can often secure better rates than you would find on the individual market. According to J.D. Power's 2023 Insurance Shopping Study, 65% of employees who took advantage of employer-offered home and auto insurance found their rates to be competitive or even better than individual market rate (7).
A One-Stop-Shop
Using a platform like BenefitHub offers a streamlined experience for employees seeking insurance. It's a one-stop-shop where you can quickly compare different policies and carriers using a fast and easy online quoting tool. Plus, BenefitHub partners with over 25 national carriers, so there’s a wide array of options to choose from—and we’re always expanding.
Hassle-Free Experience
Unlike other online quoting services, BenefitHub never sells your information, meaning you won't have to deal with spam from carriers. Additionally, you can work with our unbiased in-house insurance agents who are there to ensure that you get the best policy for your needs without any pressure to choose a specific carrier or plan.
Cost Savings
Insurance premiums are on the rise, with car insurance increasing by 20.6% in 2024 compared to 2023 (8) and homeowners seeing a 17.4% average premium increase for new policies (9). However, those who switch using BenefitHub platforms save an average of $590 on auto insurance and $502 on home insurance when bundling. This makes now an ideal time to consider switching your insurance provider.
Potential Drawbacks
Limited Carrier Options
One potential downside is the limitation in carrier options. While BenefitHub provides access to over 25 national carriers, this might still be fewer than what you’d find on the open market. However, this means you’d need to reach out several times to get quotes, rather than from one spam-free quoting tool.
Plus, we are continuously expanding the BenefitHub network, so continue to check back!
Additional Perks
Payroll Deduction
One of the conveniences offered when buying insurance through your employer is the option of payroll deduction. This makes managing your payments easier, ensuring they are automatically deducted from your paycheck. Note that this varies by employer, so check to make sure this amenity is offered.
Electronic Documentation and Rate Transparency
Employer discount platforms often provide electronic documentation, which makes it easy to manage your policies digitally. Additionally, you’ll receive advanced notice of any potential rate increases, helping you stay informed and avoid surprises.
Final Thoughts
In conclusion, purchasing auto and home insurance through your employer's discount platform with BenefitHub can be a wise decision, especially if you're looking to save money and simplify the buying process. With competitive rates, a range of options, and additional conveniences like payroll deduction, it’s a comprehensive solution for employee insurance benefits - especially given the increased need for protection.
If you're ready to make a switch or want to explore your options, visit the BenefitHub quoting tool - here for auto and here for home. With the right information, you can make an informed decision that best suits your personal and financial needs.