Taking a Closer Look at Car Insurance for Federal Employees
Canada employs many different employees. There are several positions that they fill. These employees have the opportunity to belong to various organizations. It is an organization that is specifically for them. By becoming members of these organizations they sometimes have the chance to enjoy discounts. These discounts apply to a variety of different products and services. One of these may provide discounts on car insurance for federal employees.
The Public Service Alliance of Canada
It is a union organization that is available for many of the Federal employees. It is the Union for Federal employees across Canada. They are in Ottawa but have several offices throughout Canada. They provide many benefits and services for those that are members. Among these is the opportunity to take advantage of discounts. These are discounts for different services and products. One of these is for auto insurance.
It is not something new that is offered to the Federal Government employees. It has been available to them since 1985. To make this happen PSAC partnered up with a group of insurance brokers. They were able to provide discount prices for auto insurance. It is for the Federal workers who become members of the PSAC.
How is Discounted Federal Employee Vehicle Insurance Possible?
There are many federal employees across Canada. They can join the union. A union is a huge group that can approach Insurance companies. They can do this for a chance to get a discounted rate. It is also like bulk-buying a product.
Organizations like this can then see if their group can qualify for discounted auto insurance. Large corporations may have the same opportunity
Does Discounted Car Insurance Offer Fewer Advantages?
Some Federal employees may think that they are getting less coverage. Based on the discounted insurance. It is not usually the case. However, it is vital for the Federal employees to check out what the group discount insurance is providing them. Then they need to look at their current insurance to see the differences. Naturally taking the one that offers the best insurance at the lowest prices would be the best choice.
Insurance providers offer insurance set at premiums. It is as they pertain to the specifics of the driver. There are many questions that the insurance company asks before determining this. It may be that a Federal employee can get a better insurance deal on their own.
One of the ways they can determine this is if they take the time to get various quotes. It allows the insurance shopper to review several quotes. It can be done quickly. Then they can choose the one that is best for them. Comparison of the quotes against the discounted Federal auto insurance for employees is an option. It means knowing what the discount insurance is covering. Then asking for the same coverage when getting the quotes.
Why Insurance Companies are Willing to Offer Group Discounts
Insurance Companies across Canada have a lot of competition. It takes a lot of work for them to market their services. It is much easier when they can do this in large groups. To do this, they will set up incentives like discounted insurance for vehicles. They are not losing money by offering discounts. They get a lot more policyholders as a group. Marketing to get this same number of people would be costly. So, the Insurance Company is saving money here.
Easy to Set Up Group Insurance for Federal Employees
Federal employees are all across Canada, and they are often present in groups. For example, The Royal Canadian Mounted Police is a federal organization. They have detachments all across Canada. Each of these detachments has Federal public servants working in them. They are eligible to join their union. Which is the Public Servants Alliance of Canada. These groups may be eligible for the group discount for insurance through the PSAC.
Car Insurance is Compulsory in Canada
There is no such thing as having an option to have vehicle insurance in Canada. Every driver that is going to be driving on the public roads must-have. What it comes down to is deciding whether you want to insure beyond the basic requirements. Federal employees can use the basic outline to compare against the group insurance.
Do You Need More Than Basic Auto Insurance?
Some Federal Employees will ask is if they need more than the basic mandatory insurance. The group policy may be more expensive than the compulsory insurance is. The answer depends on what the specific needs of the driver are.
It is important to realize that even your mandatory insurance may not be enough if you get in an accident. The insurance company will pay the amount of the insurance coverage. The costs of the crash may be over this amount. If so, then the driver has to spend the rest.
Your vehicle may not be covered by mandatory insurance. It will be if you are not at fault or maybe even partially at fault. If you are at fault, then it will not be.
A Full Understanding of Mandatory Insurance Is Important
If you are going to compare car insurance to Federal employees which are the group policy, you need to understand the basic insurance. It will be different according to the regulations that each province in Canada has set for them.
For Ontario, the minimum amount of insurance needed is $200,000. It covers costs for property damage, injury, and death as a result of the accident. However, it is if you are at fault. It seems like a lot of money, but it isn’t when it comes to severe accidents.
Car insurance for federal employees may give you an option for more coverage. This additional coverage can range between $500,000 up to two million. What is usually recommended is two million. It is a big difference compared to what mandatory insurance requires.
Also, mandatory insurance coverage for injuries can be very confusing. It is as it relates to non-catastrophic and catastrophic injuries. It is a meager amount of coverage that is offered. For many, they prefer to increase their optional coverage because of this.