Insurance costs have risen and are causing financial stress for employees. Explore how employer discounted home and auto insurance provided as a part of a comprehensive benefits package can save employees hundreds on a necessary but rising cost.
What are Employee Insurance Benefits: A part of a Comprehensive Compensation Package
In an environment of rising costs and stagnating wages, one in three consumers said they are concerned about making ends meet in 2024 (1). Employers are seeking alternative solutions to help stabilize employee finances, including incorporating voluntary benefits into a comprehensive compensation package. In particular, employee insurance benefits are gaining popularity as a proven way to put money back into workers pockets through employer discounted home & auto insurance rates.
Economic pressures lead to a competitive job market, and companies are increasingly offering these insurance options as a way to attract and retain employees amidst this war on talent. By doing so, employers demonstrate their commitment to the well-being of their employees, which extends beyond the workplace and into the personal lives of their workforce.
Moreover, the inclusion of home and auto insurance in employee benefits not only safeguards employees against unexpected financial hardships due to accidents, theft, or natural disasters but also simplifies the process of obtaining coverage. Employees benefit from the convenience of dealing with a familiar entity – their employer – rather than navigating the insurance market independently.
Comparing Home and Auto Insurance Rates through Employee Programs
In 2024, the national average annual cost for car insurance is $2,150 for full coverage (2) and the average annual cost to insure a home in the United States is $1,602 (3).
For many, this means an average increase of 20% (4) and 17% (5) year-over-year, respectively. This unexpected financial burden outpaces wage increases, and employee programs are one way to combat rising costs.
Employee discount programs that allow the comparison of home and auto insurance rates offer a transparent and cost-effective way for employees to select the best insurance options. Such programs can leverage the collective bargaining power of the workforce to secure competitive rates that might not be available to individuals shopping for insurance on their own.
The ability to compare side-by-side quotes enables employees to make informed decisions based on their specific needs and budgets. This process is often facilitated by platforms like BenefitHub, which streamline the comparison and can potentially save employees a significant amount of money on their rates. Plus, through employer sponsored insurance programs, premiums can be deducted directly from payroll, eliminating a middle-man and creating a single point of contact. These unique agents can negotiate rates, receive advance notice of policy increases, and perform tasks with the best output for employees in-mind. For example. BenefitHub delivers the lowest side-by-side rates across 17 different carriers across 50 states, through an in-house insurance agency that offers direct billing and group quotes. Learn more about BenefitHub's home & auto insurance discounts.
Advantages of Integrating Insurance into Employee Benefits Packages
For employers, integrating insurance is a strategic move that can increase job satisfaction, reduce turnover, and position the company as an employer that cares about employee wellbeing. Employees, on the other hand, receive the advantage of group rates and access to non-standard insurance companies.
Additionally, the convenience of having insurance premiums deducted directly from payroll and the assurance of dealing with trusted providers selected by their employer can provide a sense of security - meaning one less thing for employees to worry about. This is especially relevant in 2024 as 35% of employees state that they are less productive because of financial stress (6). Financial health is the #1 need cited by employees, and the more than companies can address this gap, the higher reported employee loyalty.
How Employees Can Leverage Group Rates for Personal Insurance
We have established that employee insurance benefits are a good thing - but how are such discounts even possible? Employees can leverage group rates for personal insurance by participating in employer-sponsored programs. These group rates are often lower than what an employee would pay for individual insurance policies because the risk is spread across a larger number of participants, allowing the insurer to offer more competitive pricing.
By taking advantage of group rates, employees can enjoy the same level of coverage at a reduced cost, which can translate into substantial savings over time. It's important for employees to review and compare the offered insurance benefits to ensure they are maximizing the value from their employer's program.
Thanks to record levels of national disasters and inflation, insurance rates continue to go up. Not only are rates increasing, but coverage options are decreasing. As shared by the Wall Street Journal earlier this year, "Homeowners and drivers are facing sharply rising premiums, less coverage and fewer, if any, choices of insurer. In some places, the only options are bare bones coverage or none at all" (7). With the expanded reach of a large organization, employer sponsored insurance programs can help to combat against 'insurance deserts' by expanding access to providers.
Streamlining Insurance Management
Streamlining insurance management offers a win-win scenario for both employees and employers. For employees, it simplifies the process of selecting, enrolling in, and managing their insurance policies. Employers benefit from increased productivity as employees spend less time dealing with insurance-related issues (and financial stressors) and more time focused on their work, in addition to cultivating goodwill.
In-house insurance agencies or partner platforms can manage the entire insurance lifecycle, from initial quotes to claims assistance, which contributes to a more seamless experience for everyone involved.
This, plus the added capabilities of payroll deductions, creates a one-stop-shop that reduces mental clutter and ensures a single point of contact.
How BenefitHub can Help: Market Leader in Employee Insurance Benefits
BenefitHub is a voluntary benefits providers that is a market leader in employee insurance benefits. By providing a central platform where employees can browse, compare, and enroll in home and auto insurance policies, BenefitHub simplifies the decision-making process and provides significant cost savings. Employees can save around $1,092 on insurance by bundling home & auto rates through BenefitHub. Read more about our home & auto insurance discount program.
The BenefitHub platform has a user-friendly interface and provides support resources that empower employees to take charge of their insurance needs while feeling supported by their employer. Reach out to our team today if you are interested in enhancing the overall value and accessibility of employee benefits, or, check out our online comparison tool for auto insurance and home insurance quotes.
Sources:
(1): CNN, "Even Wealthy Americans are Struggling to Make Ends Meet"
(2): Forbes Advisor, "Average Cost of Car Insurance 2024"
(3): The Zebra, "Homeowners Insurance Outlook 2024"
(4): Forbes Advisor, "Car Insurance Facts and Statistics 2024"
(5): National Mortgage Professional, "Home Insurance Costs, Coverage Worsening in 2024"
(6): Metlife's 22nd Annual U.S. Employee Benefit Trends Study 2024
(7): WSJ, "Buying Home & Auto Insurance Used to be Routine. It's Becoming a Nightmare."