Get Dividends from your Insurance
Earn a dividend while holding your insurance policy. If you have ever compared policy rates quotes for auto insurance, home insurance you should take into account the opportunity to earn dividends on your policy. Not all insurance companies pay dividends, and even ones that do may not pay a dividend each year.
I have been earning dividends on my own auto insurance policy for 15 years. It has averaged about 5% per year.
No Free Lunch
Dividends come out of the premiums that the company collects each year. If the financial performance of the company is good (claims are low, earnings on investment are good), there may be cash leftover at the end of the policy year. One of the ways to use the cash is to pay the policy holders. You should be eligible for a dividend regardless of your claim history.
Another option the company has is to lower premiums by adjusting their underwriting guidelines.
Companies that Pay Dividends
Some of the companies that pay dividends. Contact the insurance company or broker to find out if dividends are paid.
- State Farm Mutual Automobile Insurance Company
- Texas Mutual Insurance Company
- New Jersey Manufacturers Insurance Company