Auto Insurance : Saving Money When Every Penny Counts
With the current state of the economy, no one can afford to pay more than they need to for anything, especially auto insurance. Many auto insurance companies are taking note of the decline in the economy, and trying to help their customers as best they can to save as much as possible. By offering additional savings to current customers, auto insurance companies are hoping to avoid losing those customers, which will cost them more than the additional discounts in the end.
However, the economic crisis isn’t faced by consumers alone. Many companies are struggling, and you can see this by watching the news and reading about job layoffs, companies merging, and even companies closing their doors because they can’t stay afloat. Insurance companies aren’t immune to this financial crisis, and they are experiencing just as much effect from the economy as everyone else. State Auto, a property and casualty company out of Columbus, Ohio, is one of many companies losing money as of late. They reported a $14.7 million third-quarter loss of income, which is a big loss for a company like this. It’s great that insurance companies are willing to help out consumers, but what will it cost them to do so?
Many companies who don’t want people to cancel their policies are offering additional discounts to consumers, but can’t keep it up for long. If they are losing income by lowering rates and feeling the effects of the week market, it won’t take long for insurance companies to begin sinking in their own quicksand. How can insurance companies help consumers to better afford auto insurance without jeopardizing their own well being? In all honesty, they can’t. Auto insurance companies need all the help they can get in the current economic state, and losing money is not in any of their agendas.
When will it end? It’s like a vicious circle of loss for everyone. People lose money so they need to save more, then insurance companies offer discounts and rate cuts to help out, but that causes them to lose money. Industries as large as auto insurance impact the financial well-being of the economy directly when they lose money. It’s a rough time for the United States, but if everyone just holds on a little bit longer, things should start looking up, and saving money on auto insurance will once again be a good thing.