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Carlos Said:

If I were to open an auto insurance business and set my rates to make a profit, yet did not charge extra if?

We Answered:

Yes.

Statistically, people who have been in accidents, or who have other indicators of higher risk will file more claims for more money. So, you charge them more. You charge people who will cost you less in claims less, to attract them.

Your hypothetical insurance company would go broke. Other companies would attract the lower-risk drivers with lower rates than it could offer, leaving it with higher risk drivers who would draw more in claims than the pay out. If it raised it's rates until it could cover those costs, it would actually be charging even the high-risk drivers /more/ than the companies that have been able to attract lower-risk drivers!

Dennis Said:

How WOULD I FIND OUT THE NAMES FOR ANY AUTO INSURANCE COMPANIES THEY HAVE GONE OUT OF BUSINESS SINCE 2000?

We Answered:

You're best bet is to contact the Insurance Commissioners Office in your state.

However, even if you find a company that you think you had coverage with their records are probably all destroyed unless the company was bought out by a different insurance company.

Good Luck

Daryl Said:

need help with business hw on auto insurance?

We Answered:

Go to Auto trader, or Kijiji to find the vehicle you want.
Then you can go to Progressive or Esurance to get a quote based on the vehicle and your information. There may be other sites, but those are the ones I know of off hand.

Beatrice Said:

My business auto was totaled. Insurance paid for it.What is the proper acctg. entry for the loss of the asset?

We Answered:

If you received cash for it....

Cash (Debit)
Accumulated Dep. (Debit)
Loss on Asset (if a loss) (Debit)
Gain on Asset (if a gain) (Credit)
Asset Account (Credit)

If they just paid off the loan instead of cash, you Debit Loan instead of cash. To determine if it is a gain or a loss, fill in the rest of the entry first and see which side still needs an entry to balance. If the Credit side is lower, you have a gain and if the Debit side is lower you have a loss.