PRICE VS. COST –
WHAT'S THE DIFFERENCE?
Price is a one-time concern. Cost is a lifetime concern.
School Administrators have two basic options when purchasing their property / casualty coverage.
One Option (Price) is to ride the market with single year coverage, buying from any vendor at the lowest up-front price when the market is at a low, hoping that their budget can handle the surcharge in premiums when the market swings in the opposite direction - and hoping that the insurer stays in the Texas market when storms, fire or other factors drive increased claim activity. PCAT believes this is risk reaction and not risk management. The discounted coverage bought this year is simply underfunded risk with the true costs being deferred to the near future as inflated premiums – assuming the coverage is still available.
The PCAT Option (Cost) is to stabilize the budget process and engage a long-term cost savings approach that ultimately enhances a school district’s ability to invest more dollars in educating their students and have the greatest return on investment for taxpayers. The PCAT risk program was developed for school administrators who are not satisfied with costs that can only be predicted for twelve months. PCAT members look for long-term cost savings over comparable single-year coverage.
Most people know that if you’ll be in your home for the next 30 years, you don’t consider a short-term adjustable rate mortgage. You want the best long-term fixed rate mortgage. Determining an investment strategy for your district’s property / casualty insurance is no different. Since property / casualty insurance is something you must acquire each and every year for the next 30+ years, and not just once, you need to invest in the best long-term cost solution. Chapter 44 of the Texas Education Code even states that, “in determining to whom to award a contract, the district shall consider the long-term cost to the district to acquire the vendor’s goods or services.” Adjustable rates are temporary in nature. Because property / casualty insurance is a long-term proposition, it demands a long-term cost solution.
How Does PCAT Save You Money by
Reducing Cost?
- Multi-Year Rate Guarantee Not Contingent Upon Loss Ratio
- Competitive Rates & Deductibles
- Cash Dividends
- Funding of Services Like State-Mandated Safety & Security Audits
- No Property Co-Insurance Penalties
- Aggressive Claims Administration
- www.PCATUniversity.org (Web-Based Training for All School Employees)
- SafeBus© (1-866-SafeBus)
- PCAT Bus Driver-of-the-Year Award
- Hands-On Loss Prevention Services
Few Companies Beat Us on Price –
Nobody Beats Us on Cost!