Why would there be a difference? The former's profits go to the investors, the latter's go to the policy holders, but the effort to minimize payouts remains the same. More payouts, less profit.
Why would there be a difference? The former's profits go to the investors, the latter's go to the policy holders, but the effort to minimize payouts remains the same. More payouts, less profit.
In a mutual company, the "profits" go to the policy holders in the form on lower premiums. The policy holders don't look at it as they want to pay next to nothing in hopes they will receive next to nothing when they have a claim. They want to pay a fair amount and receive a fair amount.
When I still in training, I asked the #2 guy when I would be taught to lie, cheat and steal... you know, all the typical insurance adjuster type stuff. I understood I was getting into a job that was hated almost as much as lawyers. The guy told me to never let the boss hear me say that. The way we are taught to handle a claim is to pay what we owe, no more, no less.
When we go in for our reviews, the cheapest guy on the team gets in the most trouble. You don't want to be the guy that pays the least. They guy that pays the most might give away a few 100k more over the year (we do property, not bodily injury - the money is much bigger on the BI side). If the cheapest guy's average claim pay out is as far off low as the high guy's average is above, the cheap guy just shorted the market a few 100k. The high guy has a training issue, but the low guy has 1500-2000 potential bad faith lawsuits for shorting the market what a competitive repair costs. It's stressed to us that it is not our job to save the company money. It's our job to pay what we owe. It's someone else's job to adjust premiums based on what we pay out. If it even appears we are manipulating an estimate because someone wants to cash settle, we'll be in a meeting with the boss. Of all the data they keep on us, what you shoot for is right in the middle of dollars with the highest production. Basically do the most work and pay the closest to average for all the different stats. The person who does that gets the biggest raise.
As much as I go into a shop and pay them less than their estimate, there are plenty of times I go in a pay more than their estimate because maybe they know how to fix a car but don't have a professional to work the software. They will screw themselves out of all kinds of money because they don't understand what how the software works. I don't write a low end sheet for a low end shop although I write in a area where I plenty of opportunities to do so. I have no problems spending the company's money.
Now I will admit I've talked to guys from other companies that say they are under all kinds of pressure to keep claims cost low. So that definitely happens all over the market. But it's not all companies.
I've not met an insurance company yet that actually cared. I've had insurance "guys" that were great and would help any way they could but they are just the pretty face of an ugly business. As JB referenced, they (the insurance company) aren't your friend, that's burned into the lives of way too many American families. They are in it for the profit not to help you regardless of what the funny gecko, duck or caveman tries to make you believe. If they can get away with paying very little or denying your claim altogether they will.
As far as keeping or dropping uninsured motorist, if you have an insurance agent who's local and you trust ask him or her what they recommend. My insurance guy many years ago would sit down with me and go through everything occasionally and weed out all the double charges and recommend what to keep and what not to. A good insurance person will save you money but you have to remember that the company itself is out for themselves not for you.
As far as keeping or dropping uninsured motorist, if you have an insurance agent who's local and you trust ask him or her what they recommend. My insurance guy many years ago would sit down with me and go through everything occasionally and weed out all the double charges and recommend what to keep and what not to. A good insurance person will save you money but you have to remember that the company itself is out for themselves not for you.
Not in Oklahoma but there are many states that sell UMPD uninsured motorist property damage. Call the Oklahoma insurance commissioner and your state legislature reps to get it legalized in OK. I would like to drop my collision coverage but all the uninsured motorist keep me from doing it.
Brandi I don't know where you had a bad experience with it all but I can tell you that any company is out for the profit.
$300 a year seems rather pricey, even for 3 vehicles. However. Even if your vehicles are paid off. If $10 a month is a concern to you, I'd keep it. Unless your cars are total rubbish. My signifcant other was carrying full coverage on her paid off car that is only worth about $3000 now. It was about $100 a month. She hasn't had an accident in 10 years, except for the only time I let her touch my truck... I made her cancel her full coverage. She doesn't keep uninsured motorist. Her insurance is $300 a year now, I think. My point to her was at $900 a year savings, buy a new vehicle if you accidentally total someone else out. Same concept applies here, unless your cars are more expensive than your care to be out of pocket. $300 a year isn't a lot of money to put towards a $10,000 vehicle.
All my trucks have $1 million in coverage. My car is classic with replacement value at around $300 a year with Grundy. Apples and oranges I know.
All my trucks have $1 million in coverage. My car is classic with replacement value at around $300 a year with Grundy. Apples and oranges I know.
Similar threads
