Mark Gritter (markgritter) wrote,
Mark Gritter
markgritter

Phone Spam

My insurance company called tonight to try to sell me their roadside assistance package. They do this every year or so.

I was curious how much of a scam this was, so I listened long enough to hear the price--- $14 a month. That's $168 a year, or $142 with the two-months-for-two-bucks introductory price. More than double an AAA membership or a GM Motor club membership. It looks like Allstate has lower-priced plans, too, though.

I see the benefit of having a single point of contact (rather than trying to find a provider in the middle of Iowa, for example.) But that makes sense at the $48/year for $50 benefit level (Allstate's bottom one.) Paying $168/year for $250 benefit makes no sense at all to me. You've got to figure if they can make money at the former rate then they've got to be absolutely raking it in on the higher levels of 'assistance.'
Tags: economics, insurance, rant
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