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	<title>New answer on: How Does An Auto Insurance Company Make Money?</title>

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		<title>By: Wendi Kratzer</title>

		<link>https://insurancelibrary.com/auto-insurance/how-does-an-auto-insurance-company-make-money</link>

		<dc:creator>Wendi Kratzer</dc:creator>

		<pubDate>Wed, 15 May 2013 20:18:37 +0000</pubDate>

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		<description><![CDATA[In addition to what David said, they take those premiums and invest them, so they are earning interest on those dollars. The way they make money is, more people don&#039;t have claims then do, otherwise they wouldn&#039;t be in business. If it looks like they aren&#039;t going to make any money, your rates will go up.   ]]></description>

		

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		<title>By: David Osgood</title>

		<link>https://insurancelibrary.com/auto-insurance/how-does-an-auto-insurance-company-make-money</link>

		<dc:creator>David Osgood</dc:creator>

		<pubDate>Tue, 14 May 2013 21:30:09 +0000</pubDate>

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		<description><![CDATA[I&#039;m certain that this will not be a complete and thorough answer, but I would say in it&#039;s simplest form insurance companies make a profit by receiving more in premium from clients than they payout in expenditures ( claims and other operating expenses). There really isn&#039;t any magic behind it just simple economics.]]></description>

		

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