It’s amazing how Google can change your life. Well, maybe not your life, but it can change the topic pretty darn fast when it comes to writing an article. When I went to search the topic that I was intending to write about the first phrase I typed was, “Are all insurance companies…” We have all Googled. We all know how it works. You put one word and Google will prefill some popular searches. Imagine my surprise when after that first initial phrase, the top prefill came up as, “Are all insurance companies evil?” I completely understand the connotation associated with insurance. It’s expensive, you’re forced for the most part to carry it, and we have no control on the price. If I learned anything growing up in a house of girls, there are always two sides to every story.
Sometimes it’s hard to think of the big, bad insurance company as being an actual business, but that’s what they are. The sole purpose of any business owner, whether it be a mom and pop shop or a great, big industrial manufacturing plant, is to make money. Let me reword that a little bit, because even though that is the easiest, most black and white way to say it, for whatever reason, to say it that way still evokes the image of greediness. The sole purpose of any business is to be profitable. That being said, we are required to carry insurance, whether it be for a contract for your business or your personal auto, it’s required. Because of this, I think it is a common misconception that these companies are a public service, therefore they should not try to make a profit. It is still a business though. Profit is necessary. Not just that, but the insurance industry is one of the most regulated industries in the entire country. As a result, it’s nearly impossible for a company to constantly defraud clients and stay in business. When you see your renewal and that it’s increased, no, the insurance company is not personally trying to destroy your life. The big thing I think we as the consumer forgets is that it’s not all about you. Let me explain-it’s normal to have people call wondering why their insurance has gone up when they’ve never filed a claim. Well, it’s not just about you. I hate that. I’m a middle child, I LOVE to think it’s all about me, but in this instance it is everything and everyone. Most insurance companies are not local. They are writing business through the entire United States. If there’s tornadoes in North Dakota and a hail storm in Dallas, but it’s sunny and 75 degrees in Yukon, we are still going to be affected. There is math and formulas and way more thinking then one could ever imagine involved in coming up with rates, not an insurance magician pulling it out of a top hat.
Insurance companies aren’t evil. It’s hard to understand insurance and why we have to pay for it. It isn’t something tangible and you pray you never have to use it. Insurance companies do provide a great resource, just ask the widow who just received a life insurance check or anyone in Moore after their home was destroyed. Peace of mind is something else entirely and you can’t put a price on that.