Auto_man12
New Member
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Are there any auto insurance agents or industry professionals who know what percentage of Auto insurance premiums collected actually goes to pay out claims? Ive heard conflicting numbers, with some even saying payouts are higher than premium intake, and that insurance companies make money off investments from the cash hoard. If this were the case, why would they just not continue to make money off the cash hoard and stop writing policies, essentially becoming an investment company.
I suspect the payouts are no more than 50% of premiums, just so they can cover advertising, employee salaries/benefits, fraud and have some profits left over.
Anyone know for sure?
I suspect the payouts are no more than 50% of premiums, just so they can cover advertising, employee salaries/benefits, fraud and have some profits left over.
Anyone know for sure?