Healthcare and Employee Benefits: A Growing Challenge for Auto Repair Shops
Rising healthcare costs, intense competition for skilled technicians, and the unique health risks associated with automotive work are making a strong employee benefits package more important than ever for attracting and retaining qualified employees.
Industry research reinforces this trend. According to Ratchet+Wrench’s 2024 Industry Survey, 68% of responding auto repair shops offered health insurance—a clear indication that health benefits are increasingly becoming an important part of a competitive compensation package.
Automotive Workers Face Unique Health Risks
Health Insurance benefits can be particularly important in the automotive industry because technicians and body shop employees work in environments that pose occupational health risks.
The Occupational Safety and Health Administration (OSHA) identifies a variety of potential hazards associated with autobody repair and refinishing, including exposure to paints, solvents, isocyanates, silica, sanding dust, and welding fumes. Employees may also face ergonomic and repetitive-stress risks due to the physical nature of their work.
Safety source: OSHA — Autobody Repair and Refinishing
What Happens When Major Medical Insurance Isn’t Enough?
Major medical insurance primarily pays healthcare providers. It doesn’t replace an employee’s paycheck when an accident, injury or serious illness prevents that person from working.
An employee dealing with cancer, a heart attack, an accident, or a disabling condition may still have a mortgage or rent, utilities, groceries and other household expenses to pay.
That is where employee-paid voluntary benefits, such as accident, disability, critical illness, and life insurance, can be an important part of an employee’s overall financial protection, because the policies pay cash benefits when a listed injury or sickness occurs.
This fact is particularly noteworthy given the Ratchet+Wrench finding that while more than two-thirds of responding shops offered health insurance, fewer provided disability or life insurance.
An Opportunity for Employees With Health Conditions
Another consideration is what happens when an employee already has a health condition that could make obtaining certain types of individual insurance difficult or expensive.
Depending on the product, state, eligibility and enrollment requirements, eligible groups may have access to guaranteed voluntary benefits that do not require traditional individual medical underwriting or health questions.
For an automotive employee who previously thought life, disability, or other supplemental protection was unavailable or unaffordable due to their health history, employee-paid voluntary benefits can be especially valuable.
Better Benefits Without Putting the Entire Cost on the Shop
Small shop owners face a difficult balancing act. They want benefits that help attract and retain good employees, but they also must control operating expenses.
Voluntary benefits can help address that challenge. Employees can select coverage based on their individual needs, while the employer can offer a broader benefits package without necessarily paying the entire premium.
Before You Renew, Compare
ASA has worked to bring members healthcare and voluntary benefit solutions designed to give shop owners more choices.
As the upcoming health insurance renewal season approaches, don’t automatically renew your current plan without taking a fresh look at what is available.
The ASA Healthcare Program allows members to compare their existing major medical coverage while also exploring voluntary benefits including accident, disability, critical illness, life, dental and vision insurance.
Ask the ASA Healthcare team for a no-obligation, side-by-side review of your current benefits.
If your existing plan is better, we will tell you. If there is an opportunity to reduce costs, improve coverage, or provide your employees with additional financial protection, we will show you.
Before you renew, compare.
