{"id":399,"date":"2019-10-17T09:46:26","date_gmt":"2019-10-17T13:46:26","guid":{"rendered":"https:\/\/elliottinsuranceservices.com\/blog\/?p=399"},"modified":"2020-08-04T08:39:48","modified_gmt":"2020-08-04T12:39:48","slug":"what-is-a-mutual-insurance-company","status":"publish","type":"post","link":"https:\/\/elliottinsuranceservices.com\/blog\/2019\/10\/17\/what-is-a-mutual-insurance-company\/","title":{"rendered":"What is a Mutual Insurance Company?"},"content":{"rendered":"\n<figure class=\"wp-block-image\"><img decoding=\"async\" width=\"1024\" height=\"682\" src=\"https:\/\/elliottinsuranceservices.com\/blog\/wp-content\/uploads\/2019\/10\/analyzing-3385076_1280-1024x682.jpg\" alt=\"Mutual Insurance Company\" class=\"wp-image-400\" srcset=\"https:\/\/elliottinsuranceservices.com\/blog\/wp-content\/uploads\/2019\/10\/analyzing-3385076_1280-1024x682.jpg 1024w, https:\/\/elliottinsuranceservices.com\/blog\/wp-content\/uploads\/2019\/10\/analyzing-3385076_1280-300x200.jpg 300w, https:\/\/elliottinsuranceservices.com\/blog\/wp-content\/uploads\/2019\/10\/analyzing-3385076_1280-768x512.jpg 768w, https:\/\/elliottinsuranceservices.com\/blog\/wp-content\/uploads\/2019\/10\/analyzing-3385076_1280-624x416.jpg 624w, https:\/\/elliottinsuranceservices.com\/blog\/wp-content\/uploads\/2019\/10\/analyzing-3385076_1280.jpg 1280w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p>Every\nyear that you renew your insurance policy or when you quote out your insurance,\nyou have an option that you may not have realized that you had. You can place\nyour insurance with a Mutual Insurance company or a Stock Insurance company.\nThe majority of Ontario citizens might not know the difference between the two\ntypes of insurance companies, and you might even have your insurance with a\nmutual insurance company now and not realize it.<\/p>\n\n\n\n<p>In\nthis article we will explain what makes a mutual insurance company different\nthan a stock insurance company and we will outline if there any benefits for\nyou as a policy holder to place your insurance with a mutual insurance company.\nWhen it comes to insurance, it is always better to be fully informed on your\noptions.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69f3b6a4a7068\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69f3b6a4a7068\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/elliottinsuranceservices.com\/blog\/2019\/10\/17\/what-is-a-mutual-insurance-company\/#The_Mutual_Insurance_Difference\" >The Mutual Insurance Difference<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/elliottinsuranceservices.com\/blog\/2019\/10\/17\/what-is-a-mutual-insurance-company\/#Stock_Insurance_Companies\" >Stock Insurance Companies<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/elliottinsuranceservices.com\/blog\/2019\/10\/17\/what-is-a-mutual-insurance-company\/#Which_Should_I_Choose\" >Which Should I Choose?<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"The_Mutual_Insurance_Difference\"><\/span><strong>The Mutual Insurance Difference<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>A\nmutual insurance company operates very similar to any other insurance company.\nThe difference mainly comes down to their company structures and goals. Mutual\ninsurance companies are owned by their policy holders. Their policy holders\nwill be allowed to vote on important decisions regarding the insurance company.\nMutual insurance companies\u2019 directors are also policy holders that are elected\nby other policy holders.<\/p>\n\n\n\n<p>Ontario Mutuals is a brand for 38 independent, 100% Canadian owned mutual insurance companies that together have one of the strongest, most secure financial networks in the world. The Ontario Mutuals date back to the mid-1800s and show no sign of slowing down now. You can learn more about the Ontario Mutuals history on their\u00a0<a href=\"https:\/\/www.ontariomutuals.ca\/history\">website<\/a>. With this type of structure, the mutual insurance companies will set profit margins very low as they are not in the business to make their shareholders the most amount of money possible. Mutual insurance companies will often set their profit caps as low as 2.5% annually to ensure they are supporting their policy holders as best that they can and to\u00a0<strong>operate on a not for profit basis<\/strong>. The excess money above their set profit margin is poured back into their local communities &amp; charities. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Stock_Insurance_Companies\"><\/span><strong>Stock Insurance Companies<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>It\nwouldn&#8217;t be fair to write an article about mutual insurance companies and not\ninclude what makes up a stock insurance company. A stock insurance company\noperates just like any other normal corporate company. Their policy holders do\nnot get a vote (unless they are an investor too), and they have no say in how\nthe company is ran. There are some advantages to a stock company such as\nfinancial stability as they don&#8217;t rely just on their policy holders for income\nand they may have a larger capability to take on riskier forms of insurance.<\/p>\n\n\n\n<p>Stock\ninsurance companies do try to maximize their profits in order to maximize their\nshareholders dividends. That being said, insurance is a competitive market\nplace and the majority of the insurance companies will try to keep their rates\nas low as possible to win that competition.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Which_Should_I_Choose\"><\/span><strong>Which Should I Choose?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Honestly,\nwhen it comes it insurance, you have to choose the best option for yourself and\nyour family. This could mean you find the cheapest rate out there with only the\ncoverages you feel you need. It could also mean that you spend a little more to\nensure that you are covered for anything life can throw at you. Your financial\nsituation, your family&#8217;s needs, and your exposures to possible losses should\ndictate your choice.<\/p>\n\n\n\n<p>Having an experienced broker guide you through these choices is priceless. They will use their years of experience with not just 1 insurance company, but with multiple insurance companies and multiple different coverage scenarios to find the right company for you. If your broker isn&#8217;t providing you with all of the quotes that they received or with a mutual insurance company quote, please don&#8217;t hesitate to&nbsp;<a href=\"https:\/\/elliottinsuranceservices.com\/contact-us\">contact us<\/a>&nbsp;so that we can help you with your insurance needs.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Every year that you renew your insurance policy or when you quote out your insurance, you have an option that you may not have realized that you had. You can place your insurance with a Mutual Insurance company or a Stock Insurance company. The majority of Ontario citizens might not know the difference between the two types of insurance companies,&#8230; <a href=\"https:\/\/elliottinsuranceservices.com\/blog\/2019\/10\/17\/what-is-a-mutual-insurance-company\/\">Read more &raquo;<\/a><\/p>\n","protected":false},"author":1,"featured_media":400,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5,4,13,248,2,3,27],"tags":[295,297],"class_list":["post-399","post","type-post","status-publish","format-standard","has-post-thumbnail","placeholder-for-hentry","category-auto-insurance","category-commercial-insurance","category-condominium-insurance","category-farm-insurance","category-home-insurance","category-liability-insurance","category-tenants-insurance","tag-mutual-insurance","tag-stock-insurance-company"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/elliottinsuranceservices.com\/blog\/wp-json\/wp\/v2\/posts\/399","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/elliottinsuranceservices.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/elliottinsuranceservices.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/elliottinsuranceservices.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/elliottinsuranceservices.com\/blog\/wp-json\/wp\/v2\/comments?post=399"}],"version-history":[{"count":0,"href":"https:\/\/elliottinsuranceservices.com\/blog\/wp-json\/wp\/v2\/posts\/399\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/elliottinsuranceservices.com\/blog\/wp-json\/wp\/v2\/media\/400"}],"wp:attachment":[{"href":"https:\/\/elliottinsuranceservices.com\/blog\/wp-json\/wp\/v2\/media?parent=399"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/elliottinsuranceservices.com\/blog\/wp-json\/wp\/v2\/categories?post=399"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/elliottinsuranceservices.com\/blog\/wp-json\/wp\/v2\/tags?post=399"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}