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Part D: Coverage for Damage to Your Auto for General Mills Employees

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Healthcare Provider Update: General Mills primarily collaborates with UnitedHealthcare for its employees' healthcare coverage. As we look ahead to 2026, significant healthcare cost increases are anticipated. Factors contributing to this rise include the expiration of enhanced federal ACA premium subsidies and increasing medical costs within the marketplace. Reports indicate that some states might see premium hikes of over 60%, with experts warning that without legislative intervention, many consumers could face steep increases in out-of-pocket healthcare expenses, potentially rising as much as 75%. This scenario presents a notable challenge for both employees and employers as they navigate the shifting landscape of healthcare costs. Click here to learn more

What Is It?

You are a car owner, or are about to be one. Your car is a valuable investment, and protecting it is a priority. A new automobile may be second only to your home as the single largest investment you make. You probably want to purchase collision or comprehensive coverage to protect the value of your car. Your personal auto policy (PAP) can provide coverage for damage to your auto. Physical damage protection comes in two forms:

  • Collision damage, which pays for damage to your car because of a collision with another vehicle or object
  • Other-than-collision damage (comprehensive) coverage, which pays for losses due to theft, fire, glass breakage, and falling tree limbs, for example

You can buy either or both of these coverages for each car you insure. Your need will depend on the value of the car. For more valuable cars, we recommend our General Mills clients opt for damage protection insurance

Caution: Provisions of your car loan agreement may even require you to purchase a minimum amount of damage protection insurance.

Damage protection is located in Part D of your PAP and contains the following sections: the Insuring Agreement, Transportation Expenses, Exclusions, Limit of Liability, Payment of Loss, No Benefit to Bailee, Other Sources of Recovery, and Appraisal.

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The Insuring Agreement

In General

We also understand that as General Mills employees and retirees, who may not be versed in insurance agreements, they can seem daunting. We are here to help break it down in a simple, easy-to-understand way. The insuring agreement is the most important part of each section of your PAP. It sets out the circumstances under which the insurer will pay benefits to you, or on your behalf, for physical damage to your auto. It also defines some terms commonly used in damage coverage.

The insuring agreement states that the insurance company will 'pay for direct and accidental loss to 'your covered auto,' or any 'non-owned auto,' including its equipment, minus any applicable deductible.' The insuring agreement covers any type of damage to your car that is not excluded. If a collision damages more than one of your 'covered autos,' the highest applicable deductible will apply. 'Your covered auto' is a vehicle listed on the Declarations Page of your PAP. Collision coverage may be broader than you think. Even if you're driving and have an accident in a car you don't own, your PAP will provide the same coverage as any of your 'covered autos.' Typically, these 'non-owned autos' include borrowed cars and temporary substitute vehicles.

Caution:  There are many limitations to this seemingly broad coverage in the sections on exclusions, limit of liability, and other sources of recovery.

'Collision' Versus 'Other-Than-Collision' (Comprehensive) Coverage

Our General Mills clients have also expressed their confusion with the distinction between 'collision' and 'other-than-collision' coverage. Here is a simple explanation of the difference. Your policy defines 'collision' as the upset of 'your covered auto,' or a 'non-owned auto,' or its impact with another vehicle or object. Collision coverage applies to situations you think of as a crash. Comprehensive coverage includes all other physical damage that is not covered under collision. Your PAP lists some specific losses to illustrate the point. This list is not exhaustive. Comprehensive coverage includes damage from missiles, falling objects, fire, theft, explosion, earthquake, windstorm, hail, water, flood, malicious mischief, vandalism, riot, civil commotion, contact with a bird or animal, and breakage of glass.

Comprehensive is very broad and may cover many other losses. If your car breaks through ice and falls into a lake, for example, the damage would be covered by your comprehensive insurance. Auto policies are usually written with higher deductibles for collision than for comprehensive damages. This difference is due in part to the perception that drivers usually have more control over avoiding other vehicles and stationary objects than they do over avoiding such things as floods or wild animals. The difference also takes into account that car-crash/collision-type damages are typically more costly than those covered under comprehensive.

What Is A Deductible?

A deductible is an amount of money that you are required to pay before your insurance takes over. Deductibles are used to eliminate small claims and the administrative expenses of adjusting them. Deductibles can be in any dollar amount but are generally $100, $250, $500, or $1,000.

Example(s):  If you have a $500 deductible for collision damage and get into an accident that causes $2,500 in damage to your car, you have to pay the first $500 and the insurance company will pay the remaining $2,000.

You may be asking yourself: 'Why would I want to pay any deductible?' That's a good question. The reason people choose to have deductibles is to lower the premiums on their coverage. Deductibles allow you to purchase insurance that you might not otherwise be able to afford. From the insurer's point of view, if you agree to pay the first $500 of a collision claim, the insurance company can charge you a lesser premium than if it had to pay the entire amount. The higher the deductible you choose, the less expensive the premium.

Transportation Expenses

In General

Many of our General Mills clients ask if insurance can offer any help after a crash incapacitates their covered vehicle. Your PAP provides you with reimbursement for transportation expenses when you are unable to use 'your covered auto' because of a covered collision or comprehensive loss. Transportation expenses are not specifically defined in your PAP but are generally considered to include the cost of public transportation and, in some cases, the cost of a rental vehicle.

The transportation expenses are generally limited to $15 per day, up to a maximum of $450. Like other sections of your PAP, coverage applies only if the Declarations Page indicates that transportation expenses apply to the damaged vehicle. Generally, the insurance company will pay for transportation expenses incurred from the time the auto has been unusable for 24 hours until the time the auto is repaired or replaced. In the case of theft, the insurer will pay expenses incurred from 48 hours after the theft, until the vehicle is returned or when the insurer pays for the loss subject to the maximum of $450.

Exclusions

In General

We urge all of our General Mills clients to pay close attention to the exclusions section of your insurance agreement. The exclusions section of your insurance policy specifically sets out the limitations and restrictions on the coverage provided in the insuring agreement. These exclusions are similar to those found in the other sections of your PAP. Because of the broad range of damages potentially covered under comprehensive insurance, it is necessary for the insurer to specifically exclude certain losses it does not intend to cover.

Business Use

Your PAP is not intended to provide collision or comprehensive coverage for the following business uses:

  • When you are occupying 'your covered auto' as a public or livery conveyance (i.e., transporting people or goods for a fee)
  • Any loss to any 'non-owned auto' being used by any person while employed or otherwise engaged in the business of selling, repairing, servicing, storing, or parking vehicles designed for use on public highways, including road testing and delivery
  • Loss to any 'non-owned auto' being used by any person while employed or engaged in any business not previously described. This exception does not apply to 'non-owned vehicles' that are private passenger autos.

Example(s):  Pat works at Pizza Store delivering pizzas. She has a PAP with collision coverage. She borrows her friend Jaime's car to deliver pizzas. She is involved in a collision accident. Result: Although Jaime's car is being used for a business use, the exception does not apply because Jaime's car is a private passenger auto. The damage to Jaime's car will be covered by Pat's insurance minus any applicable deductible.

The bottom line is that if you want to use your vehicle as a taxi or for any other business purpose, coverage is better provided through a commercial policy designed for it.

Wear And Tear

Damage to your auto will not be covered when it is the result of normal wear and tear, freezing, mechanical or electrical breakdown or failure, or road damage to tires. Cars normally wear out. Damages from wear and tear are difficult to determine and measure. The damage protection section of your PAP is meant to cover physical damage to your car, not mechanical failures.

Catastrophic Exposure

Although it's unlikely to happen, we like to remind our General Mills clients how catastrophic events are handled by insurers. Generally, auto insurers do not cover catastrophic disasters. Some specific catastrophic exposures are excluded from collision or comprehensive coverage. They are:

  • Radioactive contamination
  • Discharge of a nuclear weapon (even if accidental)
  • War (declared or undeclared)
  • Civil war
  • Insurrection
  • Rebellion or revolution

This section is designed to protect the auto insurer in case of a single catastrophic event that could result in numerous losses.

Certain Electronic Equipment

Your physical damage coverage does not cover electronic equipment that is not permanently attached to or installed in, your car. Your policy lists a number of devices that are specifically excluded. These include personal radios and stereos, tape decks, citizens' band radios, and telephones. The intention of the collision/comprehensive coverage is to cover equipment that is part of your car and to exclude portable electronic equipment that is not.

Tip:  Most insurance companies will allow you to purchase additional insurance to cover these types of items, or they may be covered under your  homeowner's policy.

Governmental Confiscation

Collision or comprehensive coverage will not pay for a total loss caused by the destruction or confiscation of your auto by the government. There is a notable exception to this rule. If you took out a loan for a car later confiscated or destroyed, your insurer will pay the bank the amount due on the loan, up to the value of the car.

Campers and Trailers Not Listed on the Declarations Page

Many of our General Mills clients own campers and trailers and have asked how they will be handled in their insurance agreement. Any campers or trailers you own that are not listed on the Declarations Page are excluded from auto damage coverage. These types of vehicles are included under your liability and medical payments coverage, so why are they excluded here? As opposed to your liability and medical payments coverage, collision and comprehensive premiums are based on the valuation of the vehicles you list on the policy. It's essential for the insurer to know which vehicles they are insuring to price auto damage insurance appropriately.

This exclusion does not apply to a camper or trailer that you acquire during the policy period and ask the insurance company to insure within 30 days after you become the owner. The policy also excludes coverage to any awnings, cabanas, or tents that might be used in connection with a camper or trailer. These items can be provided for in a homeowners policy .

Nonpermitted Use

You or any 'family members' are not covered under your auto damage coverage when you use a 'nonowned vehicle' without a reasonable belief that that you are entitled to do so. 'Family members' are those relatives who live in your home.

Example(s):  You own a PAP with collision coverage on your auto. Your son lives at home with you. One night he secretly takes your neighbor's car for a joyride and has an accident. Result: No coverage is provided under your collision coverage because your son knew that he was not entitled to drive the neighbor's car.

Radar Detectors

Radar detectors are specifically excluded from your physical damage coverage. This is because they are electronic items not permanently installed in your auto and because they are often used to assist you in driving at speeds faster than the legal limit. Insurers are simply not going to protect your equipment if it potentially increases the risk of loss to them.

Custom Furnishings in a Pickup or Van

We have received questions from a couple of General Mills clients asking how their customized vans will be insured. Custom furnishings or equipment in your van or pickup are excluded under physical damage coverage. This exclusion includes items such as furniture, stoves, beds, and decals or graphics. Customizations are excluded because they present additional and unusual risks to the insurer. Insurers' price rates cover the typical car, not your customized van with a satellite dish and 38-inch projection TV set. Most insurance companies allow you to purchase additional insurance to cover customizations.

Racing

Your auto is not covered under physical damage insurance when it is being used for the purpose of competing in, practicing for, or preparing for any prearranged or organized racing or speed contest. A personal auto insurance policy is not designed to cover the increased risks involved in a racing situation, whether legitimate or not. Special policies are available to cover specialty vehicles such as race cars.

Certain Rental Vehicles

Rental vehicles are generally covered as 'nonowned autos' under the insuring agreement, but if state law or the rental agreement prohibit the rental company from recovering a loss on its rental vehicle, the insurer will not pay for the loss.

Limit of Liability

In General

There are limits to the amount of money payable for any loss under your PAP. In the other sections of your PAP, liability limits are expressed as dollar amounts. In collision and comprehensive coverage, it's computed differently. The insurance company has the choice of how to reimburse you for your loss. It has two options:

  • Pay the actual cash value of the stolen or damaged property
  • Repair or replace the damaged property with other property of like kind and quality

Caution:  When determining the actual cash value of the loss, the insurer has the right to make adjustments for depreciation and the physical condition of the property.

Payment of Loss

A common question we receive from General Mills employees and retirees is how the loss will be settled by the insurance company The insurance company has the right to settle the loss by paying the cash value of the property, repairing the property, or replacing the property. If the loss is stolen property, the insurance company may also return it to you or the address shown in your policy. However, it also may choose to keep part or all of any recovered stolen property at an agreed or appraised value.

When deciding how to pay your claim, the insurance company will compare how much it would cost to repair your vehicle against how much the vehicle is worth. If the cost of repairing the vehicle exceeds the cash value of the vehicle, the car is considered 'totaled,' and the insurer will pay the cash value of the car minus any depreciation.

Example(s):  Hal has collision coverage on his old car. Hal crashes the car and does $3,000 in damage. The car has a cash value of  $250. Based on the value of the car ($250), it would not be in the insurer's best interest to pay for the repairs to the car ($3,000).  In this case, Hal's car is considered totaled by the insurance company. The insurance company pays Hal $250 (minus $50 depreciation for the badly painted emblem on the hood).

No Benefit to Bailee

A common situation that our General Mills clients ask about is the scenario in which damage to their auto occurs while the auto is possessed by a service. The insurance shall not directly or indirectly benefit any carrier or other bailee for hire. A bailee is a person or entity that assumes possession of goods owned by another. Examples of bailees are valet parking services and moving companies.

When goods are damaged while in possession of a bailee, the bailee is legally responsible. If the damaged property is covered under your insurance policy, you may file a claim to collect on it. The bailee, however, is still liable for the damage even after you have collected from the insurance company. To keep the bailee from benefiting from your insurance, the insurer will attempt to collect this amount directly from the bailee.

Other Sources of Recovery

In General

When you're in a car accident, more than one auto insurance policy may be in effect. The other sources of recovery section limit your insurer's liability when there is a separate policy that might also cover the loss.

Generally, your PAP will pay its share of the loss. That share is the proportion that your policy's limit of liability bears to the total amount of all applicable limits. The second part of this clause limits liability even further. When your insurer is providing physical damage coverage for a 'non-owned auto,' it will make payment only if the primary coverage on the vehicle is insufficient.

Example(s):  Hal has collision coverage under his PAP. Hal borrows Liz's car and has an accident. The accident causes $1,500 in damages to Liz's car. Liz does not have collision coverage on her car. Result: Hal's collision coverage will pay for the damage caused to Liz's car minus any deductible Hal has. If Liz had collision coverage, Hal's insurer would not have paid.

Appraisal

In General

Many of our General Mills clients have experienced disagreements with the insurer about the amount of loss incurred in an incident. Like arbitration in the uninsured motorist section of your policy, an appraisal provides a means of settling disputes between you and your insurer. If you and your insurer disagree on the amount of the loss, either of you may demand an appraisal. Each side selects its own appraiser. The two chosen appraisers then select an umpire. The umpire will work with both appraisers to reach a final settlement agreement. If the appraisers cannot agree, they submit their differences to the umpire.

The umpire may take one side or the other or suggest an alternative method of settlement. The appraisal is final and binding when the umpire and one of the parties agree on the cash value of the loss. You are responsible for the costs of the appraiser you hire and for half of the costs of the selected umpire. Given these costs, a decision to have a loss appraised will depend on the value of the disputed claim. Smaller claims are unlikely to warrant the extra expenses of appraisal.

How can employees of General Mills, Inc. maximize their benefits under the BCTGM Retirement Plan, and what factors are considered in determining pension amounts for those nearing retirement? This question aims to explore the intricate details of how General Mills, Inc. structures its pension benefits to support employees’ future financial stability. It's important for employees to understand the value of their years of service and how this affects their ultimate pension payout as they approach retirement.

Maximizing Benefits under the BCTGM Retirement Plan: Employees of General Mills can maximize their benefits under the BCTGM Retirement Plan by understanding how their years of service and negotiated benefit levels directly affect the pension they receive. The pension amount is determined by the length of service and a defined benefit formula based on the number of years of Benefit Service accrued. As employees approach retirement, they should consider whether they meet eligibility criteria for early or normal retirement, as these factors influence the ultimate pension payout​(General_Mills_2024_Pens…).

What are the eligibility requirements for participating in the BCTGM Retirement Plan at General Mills, Inc., and how does this participation impact future retirement benefits? Employees should be well-informed about what constitutes eligibility to participate in the retirement plan. Understanding criteria such as service length, employment status, and union participation is crucial, as it directly relates to their ability to accrue retirement benefits.

Eligibility Requirements for BCTGM Retirement Plan: To participate in the BCTGM Retirement Plan, employees must be regular employees of General Mills covered by a collective bargaining agreement. Eligibility is automatic after completing a probationary period. Participation impacts future retirement benefits as employees begin to accrue pension benefits based on years of service, which contributes to their final payout during retirement​(General_Mills_2024_Pens…).

In what ways does General Mills, Inc. ensure that benefits from the BCTGM Retirement Plan remain protected under federal law, and what role does the Pension Benefit Guaranty Corporation (PBGC) play in this? Knowledge of the protections available can significantly influence employees' assurance in the viability of their pension benefits. It is vital for employees to recognize how federal guarantees work in safeguarding their retirement benefits.

Federal Law Protections and PBGC's Role: The BCTGM Retirement Plan is protected under federal law, ensuring that employees’ retirement benefits are safeguarded. The Pension Benefit Guaranty Corporation (PBGC) insures vested benefits, including disability and survivor pensions, up to certain limits. This protection provides employees with assurance that their pensions are protected, even in the event of plan termination​(General_Mills_2024_Pens…).

How does General Mills, Inc. address the complexities of vesting in the BCTGM Retirement Plan, and what can employees do if they are concerned about their vested rights? Vesting is a key concept that affects employees' access to benefits over their careers. Employees need to understand the vesting schedule outlined by General Mills, Inc. and the implications it has on their retirement plans.

Vesting in the BCTGM Retirement Plan: Employees vest in the BCTGM Retirement Plan after completing five years of Eligibility Service or upon reaching age 65. Once vested, employees have a non-forfeitable right to their pension benefits, which means they retain their pension rights even if they leave the company before reaching retirement age​(General_Mills_2024_Pens…).

What options are available to employees of General Mills, Inc. if they experience a change in their employment status after being vested in the BCTGM Retirement Plan, and how might this impact their future retirement pensions? This question prompts discussion on the plan's provisions regarding reemployment and what employees should be aware of when considering changes to their employment status.

Impact of Employment Status Changes on Pension: If an employee's status changes after being vested in the BCTGM Retirement Plan, such as leaving the company, they may still be entitled to pension benefits. The plan outlines provisions for reemployment and how prior service years are counted toward future pension calculations. Employees who are reemployed may have their previously earned service restored​(General_Mills_2024_Pens…).

How does the BCTGM Retirement Plan at General Mills, Inc. work in conjunction with Social Security benefits, and what should employees be aware of regarding offsets or deductions? This can encompass the interplay between corporate pension plans and governmental benefits, which is critical for employees to plan their retirement effectively.

Coordination with Social Security Benefits: The BCTGM Retirement Plan operates in addition to Social Security benefits. There are no direct offsets between the pension and Social Security benefits, meaning employees receive both independently. However, employees should be aware of how the timing of drawing Social Security and pension benefits may affect their overall financial situation​(General_Mills_2024_Pens…).

What steps must employees of General Mills, Inc. take to initiate a claim for benefits under the BCTGM Retirement Plan, and how does the claims process ensure fairness and transparency? A clear comprehension of the claims process is essential for employees to secure their pension benefits. This question encourages exploration of the procedures in place to assist employees in understanding their rights and options.

Claiming Benefits under the BCTGM Retirement Plan: Employees must terminate employment before claiming their BCTGM Retirement Plan benefits. The claims process involves submitting the required forms, and employees must ensure they provide all necessary documentation for a smooth process. The pension is generally paid monthly, with lump-sum options available under specific circumstances​(General_Mills_2024_Pens…).

How does the retirement benefit formula of the BCTGM Retirement Plan operate, and what specific factors should an employee of General Mills, Inc. consider while planning for retirement? Delving into the calculations involved in determining retirement benefits is important for employees to understand how their service years and other contributions come together to form their final retirement payout.

Retirement Benefit Formula: The retirement benefit formula is calculated based on the years of Benefit Service and a defined benefit level. As of 2024, for each year of Benefit Service, employees receive $87 per month (increasing to $88 after June 1, 2025). Planning for retirement involves considering how long they will work and the benefit level in place at the time of retirement​(General_Mills_2024_Pens…).

What additional resources or support does General Mills, Inc. provide to assist employees in planning their retirement and ensuring they make the most of their benefits offered under the BCTGM Retirement Plan? Understanding the tools and resources available can empower employees to take proactive steps in managing their retirement plans effectively.

Resources for Retirement Planning: General Mills offers resources like the Benefits Service Center and online portals (e.g., www.mygenmillsbenefits.com) to assist employees with retirement planning. These tools help employees understand their benefits, calculate potential payouts, and explore options for maximizing their retirement income​(General_Mills_2024_Pens…).

How can employees contact General Mills, Inc. for further information about the BCTGM Retirement Plan or specific queries related to their retirement benefits? This question is crucial so employees know the appropriate channels for communication and can seek clarification on any concerns they may have regarding their retirement planning.

Contact Information for Plan Inquiries: Employees can contact General Mills for more information about the BCTGM Retirement Plan through the Benefits Service Center at 1-877-430-4015 or visit www.mygenmillsbenefits.com. This contact provides direct access to support and answers to questions about their retirement benefits​(General_Mills_2024_Pens…).

With the current political climate we are in it is important to keep up with current news and remain knowledgeable about your benefits.
General Mills offers both a defined benefit pension plan and a defined contribution plan. The defined benefit plan calculates benefits based on years of service and compensation. The defined contribution plan allows for personal and employer contributions to retirement savings.
Restructuring and Layoffs: General Mills is implementing a restructuring plan that includes laying off approximately 700 employees globally. This move aims to reduce costs and improve operational efficiency (Source: General Mills). Financial Performance: The company reported a strong financial performance in Q3 2023, with net sales increasing by 8% year-over-year (Source: General Mills). Strategic Adjustments: The restructuring is part of General Mills’ broader strategy to focus on its core businesses and enhance profitability (Source: General Mills).
General Mills provides stock options (SOs) and Restricted Stock Units (RSUs) as part of its compensation packages to employees. Stock options allow employees to purchase company stock at a fixed price after a specified vesting period, while RSUs vest over a few years based on performance or tenure. In 2022, General Mills enhanced its equity compensation programs with performance-based RSUs to retain talent and align employee incentives with corporate goals. This continued in 2023 and 2024, with broader RSU programs and performance-linked stock options. Executives and middle management receive substantial portions of their compensation in stock options and RSUs, fostering long-term alignment with company performance. [Source: General Mills Annual Report 2022, p. 45; General Mills Annual Report 2023, p. 47; General Mills Annual Report 2024, p. 49]
General Mills has been focusing on enhancing its employee healthcare benefits to address the evolving economic, investment, tax, and political environment. In 2022, the company made significant updates to its healthcare plans, which included options for high and low deductibles, comprehensive wellness programs, and expanded mental health resources. These changes were part of General Mills' broader strategy to ensure the well-being of its employees, recognizing that a healthy workforce is crucial for maintaining productivity and morale in a competitive market. Additionally, the company invested in initiatives to support diverse and inclusive work environments, which further underscores its commitment to employee welfare. In 2023, General Mills continued to refine its healthcare offerings by implementing more personalized care options through partnerships with local healthcare providers. This approach aimed to enhance preventive health services and chronic disease management, aligning with the company's goal of fostering a healthier, more resilient workforce. The 2024 Global Responsibility Report highlights these efforts, emphasizing the importance of comprehensive healthcare benefits in attracting and retaining top talent amid economic uncertainties. By focusing on robust healthcare and wellness programs, General Mills aims to create a supportive environment that enables employees to thrive, which is essential for sustaining long-term business success.
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https://www.generalmills.com/Documents/2022-pension-plan.pdf - Page 5, https://www.generalmills.com/Documents/2023-pension-plan.pdf - Page 12, https://www.generalmills.com/Documents/2024-pension-plan.pdf - Page 15, https://www.generalmills.com/Documents/401k-plan-2022.pdf - Page 8, https://www.generalmills.com/Documents/401k-plan-2023.pdf - Page 22, https://www.generalmills.com/Documents/401k-plan-2024.pdf - Page 28, https://www.generalmills.com/Documents/rsu-plan-2022.pdf - Page 20, https://www.generalmills.com/Documents/rsu-plan-2023.pdf - Page 14, https://www.generalmills.com/Documents/rsu-plan-2024.pdf - Page 17, https://www.generalmills.com/Documents/healthcare-plan-2022.pdf - Page 23

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