BimmerFan
Seasoned Member
One more thing: there are two kinds of insurance companies, mutual and stock (for profit). Mutual (like State Farm, USAA) are owned by the policyholders, and any profits go back into the reserves or back to the policyholders. Stock companies like Geico also have reserves but the excess profits go to the stockholders.
I work for a mutual insurance company. We do not have teaser rates for new policies. What you pay your first year stays the same, unless you are a bad risk, have lots of claims, start buying expensive cars, etc. I can't speak to other companies and how they work, but I would suspect that kind of behavior is less likely with a mutual company than a for-profit stock company.
I work for a mutual insurance company. We do not have teaser rates for new policies. What you pay your first year stays the same, unless you are a bad risk, have lots of claims, start buying expensive cars, etc. I can't speak to other companies and how they work, but I would suspect that kind of behavior is less likely with a mutual company than a for-profit stock company.