Are all of the automobile insurance companies trying to get you to change because they want you to save?
June 5, 2010 by
Filed under automobile insurance
Is the reason they want you to quite your insurance company and switch to there’s because of the profit they make in selling you insurance or because they are really interested in saving you money? Are they thinking of you or their profit?
Is your auto insurance company a crook and cheating you out of your money?
If you switch to some other company, will you switch again the next time you see a different advertisement on TV?
Should the coverage protect regardless of age, occupation, area driving in, needed coverage at the same price in all states?
Of course they’re being entirely altruistic and aren’t thinking about the profit motive at all. Don’t all successful businesses operate that way?
You have to look at the insurance companies as a company, if you had a company I don’t think your main goal would to be, how much money can we not make today. Their main goal is to make a large profit, no matter what the company. So yes there goal is to make money not to save you money.
They want to make money. They are interested in profit. They do not care if you save. This does not make them crooks. Wal-Mart is also interested in profit, but it does have low prices that allow you to save, even though it has selfish motives.
You’re kidding, right? Have you never heard of “marketing”?
No, they don’t care if you save money or not. BUT, they don’t use agents, so the ONLY way they can ever write new policies, is by advertising, and convincing you to call them for a quote. What’s the most likely motivator, to get you to call them for a quote? Well, saving money!
EVERY business is in the business of making money. NOT ONE business out there – not even churches – can get by spending more money on operating costs than they bring in. OK, well, only the government can do that.
No, my auto insurance isn’t a crook. No, it’s not cheating me. People who think that, in my experience, have tried to “pull a fast one” on the insurance company, and it backfired.
I don’t watch tv (hah, I spend too much time on YA for that), and don’t shop for insurance that way, either.
Every company is in the market to do business and make profits by increasing their customer base. More customers=more business. As the customers increase, the variable costs do increase but the fixed costs remain the same, leading to reduced cost of business. Thus bigger companies can afford to offer their customers bigger discounts. Take the example of The Hartford. It’s a huge 200 year old Insurance giant. With a sound base already established, they can afford to pass discounts and lower prices to their customers. The lower prices attract more customers in turn; more customers lead to lesser prices, so it’s a cycle! As long as an Insurance company is reliable in handling claims and giving you cost effective policies, it’s not cheating you. It’s making money out of honest business and adding to the National coffers as well!