Ever wonder how an insurance company wastes your money?

Here’s a perfect example of a complete waste of resources and money. Travelers Insurance Company responded to a demand letter I sent their client regarding a misleading auto sale. To convey their message, the one-page letter was emailed to me, after which I confirmed receipt1.

It was then:

  1. Faxed;
  2. sent certified mail ($);
  3. and delivered via FedEx ($$$).

What was the purpose of sending it four ways, each more costly than the other, when I confirmed to them that the email version was received? I could ascribe all sorts of different reasons, but I think two merit consideration.

First, it’s a cover-your-tuchus situation because the insurance company does not want a court to tell them they should have conveyed the information in a different manner.

Second, I think they just do not care about how much money they spend. While one letter’s multiple mailing cost may not be significant to the bottom line, think about how many of these letters go out every day, for every issue, in every case, in all 3,142 counties and parishes across the United States.

1Click to download: Travelers Insurance Company Demand Letter Response.