Save 25 - 40% On Insurance By Switching?

Submitted by Ron First on October 27, 2011 - 9:14am

How Can All The Nationally Advertised Insurance Companies Save Every Person The Same 25 - 40% By Switching To Their Company?

I have always been baffled about State Farm, AAA, Hartford, GEICO, Mercury, Liberty Mutual, Nationwide, Allstate, Farmers, Progressive, Travelers,  MetLife, and countless others who all make the same bold proclamation that they can save people 25 – 40% off their auto or home insurance if they only switch to their company.  How can that be?!  How can they all make the same claim?  It sounds like “something is rotten in Denmark” to me!

The fact is that most of these well-known insurers purchase a large percentage of insurance [they sell to the public] through huge insurance wholesalers. This is known as “reinsurance” in the insurance industry.  There are only a few of these reinsurance companies nationally so in reality,  State Farm may very well be purchasing their excess liability insurance from the same place Farmers, or MetLife purchase their reinsurance from [and so on and so forth]!

So are these commercials we are bombarded with on television [some are quite entertaining and funny by the way] true?  Could be!  Unfortunately we do not look at the fine print at the bottom of the T.V. screen that tells us how they arrive at making such claims.

Ways To Truly Save 25-40% Off Your Auto or Home Owners Insurance

So what’s a consumer to do?  Where’s the best place to shop for auto and home owners insurance?  The answer is actually quite simple.  Shop for companies or agencies:

  1. That are rated A or better by A.M. Best or Standard & Poors rating system [for their financial strength]
  2. That are rated high by independent and objective consumer rating agencies such as Consumer Reports [for the insurer’s response to claims and administrative consumer questions]
  3. That do not advertise nationally [Remember that the price difference between a company that advertises nationally and one that does not is huge!  The reality is that those that choose to insure with these big national carriers pay for their company’s advertising costs through their auto and home owner’s premiums]
  4. That offer “Ritz-Carlton service to their policy holders [make sure the company or agency offers annual reviews to insure your coverages are always up to date]
  5. That honor God by not participating in social agendas [abortion, pornography, and homosexuality] that are an affront to the Holy Bible!!!

 

About the author

Ron First's picture
Ron First - VP of Insurance

How exciting it is to be a part of God’s work at CFAA! I became a member of CFAA in February, 2009 and shortly after committed my time and talents to CFAA in a more meaningful way [originally as the Coordinator of Memberships and then as Pastoral & Community Outreach Coordinator]. Prior to becoming a staff member at CFAA, I was a professional educator for twenty-eight years in El Paso, Texas [teacher, assistant principal, principal]. In addition to my career in public education, I have twenty years experience as a personal financial advisor and thirty years as a professional musician [both in New York City and Texas]. My life is adorned and completed by my beautiful wife, Journeth, and my two incredible children; Joshua Caleb and Hannah Gabriela.