INSURED: Analogy of federal spending

Aren't you sick of all the political advertising that has been going on for weeks. Hopefully now it's over for a while. Now we can return to the "Ridiculous Auto Insurance Company Commercials" now being broadcast on TV? You know that most of it is very exaggerated, because they cannot be saving Policy Holders $350 to $450 or more, each time a person switches carriers. BUT, if you notice, they do say that the amount is the "average saved," which also insinuates that half of the "Switchers" save even more money!

So here's my plan to take advantage of this wonderful opportunity! Stay with me now and let me know if I'm moving too fast for you.

1. I now have Allstate Insurance as my carrier on my two vehicles, and carry full coverage, at a cost of $940 a year. My home is also insured with Allstate, so this entitles me to additional savings on my auto insurance. Now, based on a full-page newspaper advertisement I have from 10-08-10, I will make the following adjustments to my Auto Insurance Portfolio:

2. I first switch from my current carrier Allstate, to A.A.R.P., and per the ad, switching from Allstate, I will save the average amount of $478 per year. OK, that now reduces my annual bill from Allstate's $940 to A.A.R.P.'s $462. Are you with me so far? Good! Next;

3. I switch again, to Progressive Insurance this time, from A.A.R.P., and this switch will save me (based on the average savings) $491 per year, which will not only eliminate my balance due of $462 with A.A.R.P., but provide me a refund of $29. Sounds really good, right? But wait, there's more! Finally;

4. I now switch to Geico, from Progressive, and based on their projections, the switch will save an additional (based on averages) amount of $398 per year. This savings, added to my previous refund of $29 from Progressive, results in a total refund of $427. This means that not only is all my auto insurance completely free, I end up with a refund of $427. And guess what? The $427 refund does not even include the additional savings of $151 per year that the advertisement estimates, as a result of insuring my home as well. Are you guys still with me? Isn't this a sweet deal?

The savings are endless, much like the current economic plan of the Federal Government. If you always wondered how economics works, this is a perfect example!

DON FRASER

Coeur d'Alene