In a presidential election year, every ad on television seems to be a political campaign ad. In a non-election year, every ad on TV seems to be an automobile insurance company ad. The four automobile insurance companies that advertise the most are Allstate, State Farm, GEICO and Progressive. One might wonder why these companies spend so much on advertising, and the answer is simple – there’s a lot of profit in the automobile insurance industry. Translation: Auto insurance companies collect a lot more in premiums than they pay out in benefits.
Confusing Auto Insurance Commercials & Print Advertising
I just received a letter from 21st Century Insurance which stated that people who switch from the top three insurance companies to 21st Century save an average of more than $500. Of course, every company advertising on TV says that they can save you an average of $300 to $500 if you switch. How is that possible? As they said in the presidential campaigns, the math sometimes doesn’t add up.
One of the main reasons that insurance companies are making so much money in Pennsylvania is that they have limited the amounts that their policy holders can collect if they’ve been a victim of a car accident. Every time you select limited tort over full tort, or reduce your uninsured motorist benefits, your auto insurance company jumps for joy. Even though you may pay a few dollars less in premiums, if you’re in an accident, you’ll lose tens of thousands of dollars which all goes into your insurance company’s profit line.
FREE Pennsylvania Auto Insurance Review
Insurance companies should make a profit, because they provide a wonderful service. They give us peace of mind. Often, however, the wording of the actual policy can be confusing, and it may be hard to decide what aspects are the important ones that you really need. When shopping around for cheaper alternatives, it may be difficult to compare one plan to another. In order to get the most benefit out of your premium dollars spent on automobile insurance, give us call at Karp & Hart, and we will be glad to review your insurance policy with you – FOR FREE.