07-11-2017, 12:17 PM
JPolen01 Wrote:WRXtranceformed Wrote:Never understood this industry, I don't think I've ever purchased products from companies that try so hard to discourage my repeat businessI really don't understand their business model. Why continue to raise rates on existing customers? I guess they just turn and burn and it works :dunno:
Most people find shopping for rates to be too onerous, which is why Progressive has done so well with the compare rates thing. The actual rates are based on math - as cost of replacement rises, so do rates. Back when I was a financial analyst for Allstate, the goal was to pay out no more than 85 cents on every dollar of premium collected. If that ain't happening, rates are going up. Contrary to popular belief, there are many lines of business that pay out more than they collect (loss ratio > 1.0).
'76 911S | '14 328xi | '17 GTI | In memoriam: '08 848, '85 944
"Here, at last, is the cure for texting while driving. The millions of deaths which occur every year due to the iPhone’s ability to stream the Kim K/Ray-J video in 4G could all be avoided, every last one of them, if the government issued everyone a Seventies 911 and made sure they always left the house five minutes later than they’d wanted to. It would help if it could be made to rain as well. Full attention on the road. Guaranteed." -Jack Baruth
"Here, at last, is the cure for texting while driving. The millions of deaths which occur every year due to the iPhone’s ability to stream the Kim K/Ray-J video in 4G could all be avoided, every last one of them, if the government issued everyone a Seventies 911 and made sure they always left the house five minutes later than they’d wanted to. It would help if it could be made to rain as well. Full attention on the road. Guaranteed." -Jack Baruth