One other fallacy is that you "save" anything. They raise the rates and then give some back.
Allstate did that with their "safe driver discount". You paid a higher rate with Allstate assuming you would have a claim. If you went claim free that year you got a rebate.
Previously the rate assumed you were a good driver and got the lower rate initially. If you had a claim, then next year your rate went up.
Sounds like the same thing? Nope. In the year you had the claim you are already paying the higher rate. They got more money from the customers and could advertise the program like it was giving you extra money.
Made Allstate millions.
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