How Can I Pick a Strong Insurance Company?

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If it is difficult or impossible to convince a large segment of voters that a Santa Claus administration in Washington, or in any state capital, is not good for the country, it is equally difficult to convince certain persons that bargain insurance is often more of a bargain than it is insurance protection. Select your states to compare discount auto insurance rates. See how much you can save.

Reliable, thinking people do not vote for Santa Claus and responsible citizens, with something more than their actual automobile at stake, do not attempt to buy bargains when it comes to the protection of their assets.

Many advantages are claimed for the stock company. It is said that it is a typical American form of business, that it is efficiently operated, that expenses are maintained at a low figure because of economical administration, that better service is afforded than by a mutual, that it boasts a capital and surplus as a guarantee for protection to the policyholders.

Stock insurance men say that stock companies give actual security for the payment of losses, that mutual insurance gives its policyholders a gambler’s chance. Get discount auto insurance rates from the strongest insurance companies!

Which insurance company should you pick? In determining the company you want, consider all factors.
First, if you have a number of insurance problems (such as house, furniture, personal liability) consult a reliable insurance agent or broker. He should be able to give good advice as to your over-all insurance picture—and better all-around service than you would get in buying directly from a company.

You cannot afford to overlook the so-called “specialty” companies. As the name indicates, they specialize in one line of insurance—such as automobile insurance. A specialty company may be either stock or mutual. Notable examples are: Allstate Insurance Company (a stock company reputedly owned by Sears, Roebuck) and State Farm Mutual Automobile Insurance Company (a mutual company).

Specialty companies have grown by leaps and bounds. Their remarkable gains make them giants in the insurance industry.

In the early 1930’s, a number of automobile insurance companies went bankrupt. Many policyholders and claimants suffered. During those years, the casualty companies did not weather the Depression as well as the big life insurance companies.

A warning, therefore, is in order. “Be sure and pick a company with financial strength.”

The question, “How can I pick a strong company?” is answered by the Liberty Mutual Insurance booklet written by Mr. Bennett Moore:

The actual figures showing assets, liabilities and surplus are important, of course, and it is easy to get these facts. But you don’t have to be a financial wizard and analyze an insurance company’s financial statement. That’s already been done for you by the insurance statistical concerns. They rate insurance companies as to size, strength, operating results and management records. Compare discount auto insurance rates today. Choose your state to receive a quote.

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