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How do auto insurance companies make money?

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Auto insurance companies make money through a combination of managed risk and the strategic use of money. Insurers associate together large swaths ... But say that one policyholder in the group does get into an accident that results in a $50,000 payout by the insurance company. read more

Auto insurance is different: The customer pays a fee to the insurance company, and the insurance company maybe provides a service or financial assistance at some point (although if the service is never rendered, both the consumer and the company would probably be pleased). read more

When you have a claim on your car insurance, the insurance company needs to dig money out of its reserve funds to pay for the loss In order to understand how an insurance company makes money, you need to understand the philosophy behind insurance. read more

Buying insurance is a way to protect yourself against the unexpected: a car accident, for example, or a sudden and very expensive illness. Policyholders pay premiums for this protection, and in return insurance companies pay claims. read more

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