When people talk about employee benefits, insurance usually brings to mind the core pillars: health, dental, vision, and maybe life and disability. In recent years, many employers have expanded that foundation by offering supplemental coverage options like accident insurance, critical illness protection, hospital indemnity plans, and even pet insurance, reflecting a broader commitment to financial wellness and lifestyle support. These additions help employees manage out-of-pocket costs and protect against unexpected medical events.
But for workers juggling the rising cost of living, financial stability doesn’t begin and end with health-related coverage. One of the largest and most consistently overlooked household expenses remains personal insurance: auto, homeowners, and renters policies that are essential to everyday life. Despite the progress in other areas, this remains a major gap in the typical employer-provided benefits portfolio – and one with real potential for impact.
By promoting the right discounts and group rates through an existing voluntary benefits platform, benefits teams can offer meaningful support with minimal effort or cost. Let’s explore.
The Overlooked Insurance Burden
Personal insurance—such as auto, homeowners, and renters coverage—has become a growing financial strain for many households, yet it remains largely unaddressed within the scope of employer-sponsored benefits. According to Bankrate, the average annual premium for full-coverage car insurance in the U.S. now exceeds $2,500, and homeowners insurance has risen sharply as well—particularly in high-risk regions. These are not discretionary expenses; they’re foundational protections that affect nearly every employee’s budget.
Compounding the issue, climate change is rapidly disrupting the personal insurance landscape. As wildfires, hurricanes, and other extreme weather events become more frequent and severe, insurers are reevaluating their risk exposure. In highly-impacted areas like California, Florida, and Louisiana, major carriers have withdrawn from entire markets, leaving homeowners and renters scrambling to find affordable—or even available—replacement coverage. Even where policies are still offered, premiums are surging and coverage terms are tightening. According to the Insurance Information Institute, homeowners insurance premiums rose more than 20% nationally between 2021 and 2023, with some regions seeing increases of 30% or more.
As a result, many employees are not only paying more – they’re struggling to stay insured at all. A 2023 Policygenius survey found that 11% of U.S. homeowners now report having no homeowners insurance at all, a troubling trend in a market where lenders typically require coverage. This growing affordability and accessibility crisis has left millions vulnerable.
Despite the scale of the problem, few employers are taking steps to help. According to the International Foundation of Employee Benefit Plans, about 14% of organizations offer homeowners insurance as a voluntary benefit, and around 13% offer auto insurance – while among larger employers (500+ employees), about 31% provide auto insurance as a voluntary option. That gap represents a major opportunity for benefits leaders to differentiate their offerings, strengthen their financial wellness strategy, and provide tangible support in an area where employees need it more than ever.
Discount Programs: An Untapped Savings Channel
While personal insurance isn’t traditionally offered as a core employer-sponsored benefit, some companies have explored group-rated auto and home insurance policies through major carriers. These programs can offer pre-negotiated discounts, convenient payroll deduction, and the credibility of name-brand insurers, all without requiring an employer subsidy. But they’re not without downsides. Rates may not always be the most competitive, especially for employees with strong individual credit or driving records, and portability can be limited – meaning employees may lose their discounted rate if they leave the company. Additionally, these offerings often require coordination with payroll and benefits systems, adding complexity for HR teams without guaranteeing high adoption.
That’s where employee discount programs come in. Some discount platforms provide access to personal insurance discounts with no setup cost, no eligibility thresholds, and minimal administrative effort. These programs empower employees to comparison shop, explore bundled savings, and access exclusive rates on auto, home, renters, and pet insurance – all on their own terms. Best of all, they can be promoted as part of a broader financial wellness strategy, helping employees lower essential monthly expenses without the friction or risk of a formal group insurance plan. Other benefits include:
- Low-lift for HR, no cost to the company. Unlike formal group-rated insurance plans, discount programs require no employer subsidy, no benefits administration, and no payroll integration. Most are already included in existing voluntary benefits platforms, making this an easy way to expand perceived value without increasing overhead or adding to HR’s workload.
- Flexible, portable, and accessible for all employees. Discounted insurance offers are available to all employees – regardless of age, risk profile, or credit score – and can often be accessed immediately. Since enrollment happens directly with the provider, employees maintain full control over their policies and can keep their coverage even if they leave the organization.
- Delivers real financial impact where it’s needed most. With premiums for auto and homeowners insurance rising fast, and access shrinking in certain regions, discount programs offer a timely way to help employees reduce essential monthly expenses. Even modest savings on a recurring bill can improve financial stability, especially for those living paycheck to paycheck or struggling with affordability due to climate-related market shifts.
Getting the Word Out: Real-World Promotion Ideas
Even though the potential savings on personal insurance through discount programs can be substantial, many employees simply don’t realize these offers exist or that they’re available through their employer. Because personal insurance isn’t traditionally associated with workplace benefits, it may not stand out alongside more familiar perks like gym discounts or travel deals. That’s why a little intentional promotion can go a long way. With the right messaging and timing, benefits teams can boost visibility, drive engagement, and help employees take full advantage of these high-impact savings. Here are three effective ways to make that happen:
- Integrate deals into financial wellness messaging. Position personal insurance savings as part of a broader financial wellness strategy. Highlight how these discounts can help employees manage essential, recurring expenses, just like budgeting tools or emergency savings accounts. Feature them in campaigns focused on “lowering your monthly bills” or “protecting what matters,” and align with existing efforts around financial education or resilience.
- Time promotions to life and seasonal events. Tie outreach to key moments when employees are likely to reassess their coverage such as open enrollment, onboarding, or major life events (moving, buying a car, adopting a pet). Seasonal promotions also work well: renters insurance during peak moving months, auto insurance before winter driving season, or pet insurance during pet wellness months. Timing adds relevance and increases engagement.
- Leverage your vendor’s promotional resources. Most discount program providers offer a wealth of ready-to-use marketing materials – emails, flyers, intranet banners, and even seasonal campaigns – designed to help drive awareness with minimal effort from your team. Don’t hesitate to reach out and ask for co-branded assets or enrollment support tailored to your workforce. By tapping into these tools, you can keep the program visible year-round without adding to your internal workload.
Setting Expectations: A Note on Transparency
While many of these insurance offers provide real, meaningful savings, they won’t always be the best fit for every employee. Rates can vary based on factors like geography, age, driving history, credit score, and even weather-related risk. For example, an employee in California or Florida may find that even discounted homeowners insurance is difficult to obtain – or more expensive – due to climate-related carrier pullouts. Others with excellent driving records may already qualify for better rates through their existing provider. That’s why it’s important to frame these offers as one valuable stop on an employee’s comparison-shopping journey, rather than a guaranteed best deal.
Positioning the program this way builds credibility and encourages informed decision-making. By being upfront that the discount platform is a helpful resource – not a hard sell – benefits teams can foster trust, increase engagement, and reinforce the company’s role as a supportive partner in financial well-being.
Final Thoughts: A Strategic Add-On
At a time when every dollar counts, helping employees save on necessary, recurring expenses like insurance is more than a nice-to-have – it’s a smart extension of your financial wellness strategy. Employee discount programs aren’t just about theme park tickets and cell phone plans. They can be a bridge to real, impactful savings on personal protection that employees might otherwise overpay for or skip entirely.
For benefits professionals looking to deliver value without added cost or complexity, this is one of the lowest-lift, highest-reward opportunities available. Now’s the time to move beyond the expected and use your existing tools to help employees protect what matters most.