How much would it cost to start a nationwide auto insurance company ?

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  • 1 month ago

    Lets say you sell Ins to a guy, and he crashes into someone's house demolishing it. It will cost 300.000. dollars to rebuild it, and he says OK, I have 300K liability coverage.

    Do YOU have the 300,000. dollars needed to rebuild the house?

    I didn't think so.

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  • 1 month ago

    On a nation-wide level, more than you or anyone else can afford.  No business starts up on a national or international level, not ever.  Not even if they have hundreds of billions in cash.

    Here's how insurance companies (from the local farmers' mutuals to the massive corporate giants) start out:  A group of local business owners get together and decide to all put aside cash into a pot.  That cash will be saved up until a disaster hits one or all of them, at which time one or all of them will have at least some financial relief after the disaster happens.  

    Over time, the pot of cash grows larger and larger, so they decide to hire some financial investment geek to manage the funds.  The geek tells them to get more people to invest in the disaster fund, and each investor will get __% interest on every dollar they contribute for every dollar that isn't spent on disaster relief per year.  The magic percent is higher for those who invest more money, lower for those who invest less.  

    At this point, a small town farmer's mutual insurance fund is born.  As the number investors grows from the thousands into the millions, and as the dollars grow from hundreds of thousands to the tens of millions, a state / province-wide insurance company is born.  When the total investments go from millions to billions, now the little disaster fund is ready to go nation-wide.  If the billions grow into hundreds of billions, the little disaster fund might become a serious international corporation.

    But nobody ever starts by putting hundreds of billions at risk with no promises.  It just doesn't work that way.

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  • May
    Lv 5
    1 month ago

    It would cost $6.23 and a few farthings.

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  • bo
    Lv 7
    1 month ago

    nationwide might have something on their website

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  • Anonymous
    1 month ago

    a few hundred million probably. Maybe you could do it cheap for $20 million. Stupid troll.

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  • Anonymous
    1 month ago

    You have to sell your sons and daughters and it will not be enough.

    • Drew1 month agoReport

      Can start with selling you first

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  • 1 month ago

    The Business & Finance section might be able to help you with that.

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  • Pearl
    Lv 7
    1 month ago

    you might be able to find this info online

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  • Anonymous
    1 month ago

    More than you will have in 10 lifetimes.

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