I have no love lost for insurance companies, on a corporate level they are nothing but, sharks, like our friend here.
In recent TV commercials I have noticed, and you probably have too, that an insurance company with a name that makes you think that they are as WIDE as a NATION are running ads for vanishing deductibles. Ok, on the surface this seems like a good deal. Basically if you are part of this program every year that you don’t have an accident they take $100.00 off of the deductible. Alright, let’s stop right here. Deductibles are the amount of money you pay, only when you have an accident, before the insurance company pays for anything. That’s an important part of the program though, because if you didn’t have an accident, guess what you paid in deductibles? Nothing! This is what makes me laugh; the insurance company is basically saying, “Hey, you know that money that you don’t pay unless you have an accident?” “Yeah.” “Well, if you don’t have to pay it for a year, we’ll make that amount $100.00 less.” “So, you’re telling me, if I didn’t have to pay $500.00 this year because I didn’t have an accident, I would have not paid $400.00 this year because I didn’t have an accident?” “Wow, what a deal.” Isn’t it just like an insurance company to remove any risk for themselves and make it look like a gift? In the casino industry they call it hedging your bet. In the real world they call it polishing a turd. Oh, but wait, there’s more. After I researched a little bit I found that, just to be part of this wonderful, no risk to the insurance company, program….they charge you a $60.00 per year fee! That’s right, they make you gamble on not getting into an accident, and that $100.00 savings, which is a make believe savings because you didn’t pay it anyway, became a $60.00 charge that you really pay! How’s that shiny turd looking now? Let’s just stop once more, and apply some math to the situation. Let’s say you go ten years without an accident, 60 times 10 equals $600.00…..the average deductible is $500.00. That’s right; you just spent $600.00 dollars in real money, to avoid the possibility of paying $500.00. Here’s your turd, would you like that gift wrapped? The slogan for this insurance company claims that they are “on your side.” Oh, I don’t know about that, I think they have you bent over with their pants down around their ankles, right behind you.