Stock or Mutual Insurance – Get Direct Car Insurance Quote

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Most mutual companies, by state law, may issue non-assessable policies. Such policies can only be written by companies which have a sufficient surplus and the financial strength to meet the legal requirements for issuance of non-assessable policies. Get cheap direct car insurance quote!

Mutual companies which require the full premium in advance and issue non-assessable policies are, of course, to be distinguished from the old-fashioned type of “pure assessment mutual” company which was prevalent in the early days of insurance and still exists in the case of rural fire insurance companies.
Which is better to buy—stock or mutual insurance? There is no simple answer to this question. There are advantages to both types.

Choice of Insurance to Fit Needs – Stock or Mutual Insurance

Because of direct selling or lower commissions to agents and perhaps other factors, the selling costs of the mutuals are less than those of the stock companies. Several of the largest mutuals pay no commissions, but acquire their business through salaried salesmen. Through such differences in cost, mutual companies realize sums they are able to distribute as dividends to their policyholders. Find affordable direct car insurance quote!

To balance the item of lower net cost, the average stock company through its agent claims to give valuable service which many mutuals do not give. The few dollars you may save on premiums may be soon forgotten if your company does not give good service in adjusting claims, or if it will cancel your policy because of a few minor claims.

There are conservatives among both the mutual and stock companies who do not favor a public airing of the advantages and disadvantages of both types of insurance. Such conservatives urge harmony between the two factions of the insurance industry. They claim that controversies would be damaging to both classes of companies.

Such conservatives who shy away from argument on the subject place the emphasis on good reputation, reliability and financial standing of the company to be chosen. They say, “Ask your agent or broker. The average man wants a doctor when he is sick, a lawyer when he is sued and a broker or an agent when he has an insurance problem.” Get the lowest direct car insurance quote now by entering your zip code!

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