Discount Auto Insurance – Stock vs. Mutual Insurers

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Select your zip code to get discount auto insurance rates, as low as $29 a month! The fairness and objective attitude of men experienced in the automobile field is well illustrated by the following statement of an official of a leading mutual company:
“My experience in the insurance business extends over a period of twenty-five years. It is my personal observation that during this time, competition on the purely stock or mutual issue has practically disappeared. The difference between the two types of carriers lies almost entirely in the method of organization; and from the standpoint of the insuring public, there is little to chose between a financially strong and well managed stock company and an equally strong and well managed mutual company.

As an officer of a mutual insurance company, I am naturally somewhat prejudiced; but in all honesty, I can think of only one real advantage in purchasing insurance from a mutual company. That advantage is in the cost to the insured. Usually, he is able to purchase insurance from a mutual company either at a deviated rate or with the anticipation of a dividend at the end of the policy term. Both types of discount auto insurance carriers can, and do, render equally high agency and claim service.”

The relative qualities of individual insurers, whether stock or mutual, and the situation of the particular insured are of much greater importance in choosing an insurer than are the theoretical relative qualities of stock insurance as such and mutual insurance as such.

Among both stock and mutual insurers writing discount auto insurance, there are companies of varying quality, and companies writing on the basis of various plans, so that the choice of an in-surer is more properly that of a particular organization suited to his needs than of stock or mutual form. The practical significance of the very few essential differences between stock and mutual insurers have been greatly exaggerated by competitive arguments.

Despite the conservative attitude of experienced men in the insurance field, competitive partisanship still exists. The arguments in favor of both types of insurance are interesting and deserve analysis.

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