Not to be that guy, but; actually, a lot of auto insurance companies regularly run their premiums below cost. The profit from insurance comes from investing th

Not to be that guy, but; actually, a lot of auto insurance companies regularly run their premiums below cost. The profit from insurance comes from investing the premiums before they get paid out as claims. Warren Buffet explains it in a lot of his letters to investors, basically the consumer insurance game is about growing the pot by discounting as close to cost of claims (or below) so you can make investment gains on the money paid as premiums.