3 Reasons Why Every Auto Dealership Owner Should Privatize Their TDB Coverage
In New Jersey, auto dealership owners are required to have Temporary Disability Benefits (TDB) coverage to help their employees cover expenses should they become ill or injured (off the job) and unable to work.
Illness or injury can be a major blow to car salespeople, who thrive on meeting goals and earning commissions.
When an injury or illness happens, they may have to bear major consequences, including loss of pay and the inability to work. This is where TDB comes into play, providing partial salary replacement until they return to work.
Most auto dealership owners provide employees with New Jersey TDB coverage offered through the state.
However, many have now started turning to private carriers because of the additional service, options, and cost-savings that the state-run plan doesn’t offer.
Here are a few reasons why you should consider privatizing New Jersey TDB to reduce costs in your auto dealership.
Fixed Low Rates
Every November, the state announces new TDB rates for the next year. In 2020, the state of New Jersey announced the biggest rate hike we’ve seen in years.
Employees must pay .26% on the first $134,900 of earnings, with a maximum annual contribution of $350.74. In 2019, they only paid .17%, on the first $34,400 in earnings with a maximum contribution of $58.48. We’ve gone from talking about pennies and nickels – less than the cost of a dinner for two in a restaurant – to what amounts to the cost of a monthly car payment for a nice family sedan or a small SUV. That’s a big increase. (Six times what it was last year, for those who are counting!)
Plus, employers contribute based on employees’ earnings, with a cap of $35,500 for the company.
By privatizing your New Jersey TDB with one of the best disability insurance companies in NJ, you may be able to lock in lower rates for 3 years.
Typically, if you file a disability claim for an off-the-job injury, you have to wait for a month before receiving your first check with the state TDB insurance. However, if you to choose private temporary disability insurance in NJ, you may get your check-in within 7 days of filing the claim.
Besides a faster payout, you have the option to select the payment option that works for you, such as a debit card or check. Also, you can schedule your disability income so that your already-established budget remains unscathed.
By going private, auto dealership owners and HR departments can provide employees with peace of mind in regards to timely payment.
Save More by Bundling TDB Coverage with Ancillary Benefits
Car sales is a highly competitive field, with top dealerships battling for salespeople and finance managers who know how to hustle. You can add ancillary benefits – including dental, vision, and Group Life / AD&D to your TDB coverage at a substantial discount.
Most of these benefits can be written as voluntary, employee-funded benefits, meaning you can offer employees the benefits they need and want without cutting into your bottom line.
We Can Help You Privatize TDB Coverage
If you own an auto dealership in New Jersey, you are required by law to get short-term disability insurance for your employees. Privatizing your TDB coverage with a top-rated carrier can help you reduce costs and stay competitive.
We specialize in TDB coverage for auto dealerships and other NJ businesses.
If you want to privatize your TDB plan, get in touch with us today.