Arguments in Favor of Buying Discount Auto Insurance Online from a Mutual Company

Reasons in Favor of “Mutual” Discount Auto Insurance Online

Mutual insurance almost always costs less because mutual companies are owned and managed by the policyholders and all the savings, over and above a small portion kept in surplus to assure unquestionable protection, are returned to policyholders in dividends. Compare discount auto insurance online now.

Since mutual companies often write policies at the same initial rates as stock companies, the net effect of the mutual dividend is to provide a substantially lower net cost. In stock companies the profits belong to the stockholders.

“But,” you ask, “how can mutual companies make these large savings? And are mutual companies as strong as stock companies?”

Are Mutual Companies As Strong as Stock Companies?

Well, there is one answer to both questions: Mutual companies usually select policyholders more carefully and they almost always operate more economically. This means that they generally have lower losses and lower expenses. This is the end result of the mutual plan—of policyholder ownership and control.

Most of all, perhaps, it is the result of policyholder interest—policyholder interest in preventing accidents and fires; policyholder interest in sound, economical management; policyholder interest in helping their company to grow in size and in strength and in effectiveness. Policyholders in mutual companies have this interest because they benefit directly—because they receive good protection and service at low cost. Get discount auto insurance online in seconds. Save up to $500 a year.

In our companies, for example, our policyholders are our best salesmen. Every year we secure many fine new policyholders through the direct cooperation of our policyholders. Mutual insurance isn’t cheap insurance—it is quality insurance of the highest order.

If the buyer can be sure of the good reputation and standing of the mutual company from which he buys, then, according to the advocates of mutual insurance, substantial savings in premiums may be enjoyed by policyholders. Those in favor of mutual insurance say that it is possible to save approximately 20 per cent on the cost of automobile insurance by buying “mutual” insurance. Looking for discount auto insurance online? Enter you zip code to get started.

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