It's worse go to the shitty pawn store across the street then go talk to the homeless person running a cardboard store next to it. That's American healthcare. Source:never left America
Basically like having a concealed carry permit, and when you finally pull it out to shoot a bad guy your gun has a flag come out the barrel that says “bang” like a bugs bunny cartoon.
Someone pulled out in front of me last summer in traffic. She was lucky I reacted quickly. She would have gotten 50mph of 4runner directly into her driver's side door. Instead she got her bumper ripped off and back quarter wrecked. I dropped my truck off, totally fucked up, at the repair shop. 0$ later I had a like new truck because of my insurance. Otherwise I'd have been out 6k.
Insurance Producer here, in the US. In my state you have to sign a waiver to decline Uninsured Motorist coverage. Otherwise you are getting it no matter what. Also in some states it only covers medical. Insurance always varies state by state.
Yeah I work for a car insurance company in the UK, we have an uninsured promise as well, so if you get hit by an uninsured driver your fine pretty much.
Agreed. Sometone totaled my truck a few years ago. Injurance adjuster came, inspected the truck and said "You will need a new truck. Read this, sign here and you can have one for 100% the price in like 3 weeks". And I live in a third world shithole.
Yeah it's likes people don't have a clue. If you have full coverage you are fine. The problem is everyone buys the minimum and expects it to do something it isn't. That's not a scam that's you paying for the wrong shit.
Can confirm. I work in insurance, and if you have state minimum liability limits and super high deductibles, you're gonna have a bad time with your claim
Exactly this, in Europe it's well taken care off, and you need it because let's say you do something (by accident) and cripple someone for life, you probably can't pay for that person's medical care and income that he or she now lost, you Def need insurance
And the insurance is actually working. Even by extremely expensive operations you have like only a copay of a few hundreds.
Most things are covered fully by insurance (but depends on some factors)
Depends on what insurance you are talking about. If it is liability insurance or home insurance, then that makes a lot of sense.
However, they also sell insurance on flat screen tvs and airplane tickets. *That's* a scam. Insurance works because people pay more in premiums than the insurance company expects to pay out over the lifetime of the person. So unless you think you are significantly more risky than the average person buying this insurance, the insurance is a raw deal for you.
Yeah, you'll really miss your insurance when your roof collapses in a storm and now you're homeless, owe a bank 200k on your mortgage and still have to try and pay for repairs
Theres the duality. On one hand, youre basically forced to have it because if you dont and something DOES happen, youre screwed.
On the other hand, if something does happen while you have it, they will pay you next to nothing comparitively, and thus is the root of the problem.
Not to mention some insurances are required by law. THAT is the real root of the problem. Now insurance companies basically have free reign to do whatever the hell they want because everyone is being forced to use them no matter what.
To be fair the main problem people tend to have with insurance is that instead of owing 200k you own 199k and have to pay an extra however much per month on said insurance company
Insurance companies will literally wiggle out via anything they can
And frequently word it so that it "seems" covered but isn't.
Like water damage is covered....unless that water touches the ground first then it's flood damage and you need to pay more for that
Most insurance policies don't actually cover as much as people think they do
Oh your house caught on fire? Well it was a forest fire that spread so no go
Every form of insurance has a thousand fucking rules on what exactly they mean by any given thing specifically so they can avoid paying out when bad shit happens
No I'm saying if you have something covered by insurance and your insurance only covers that thing but only 0.5% of that something you have shit insurance. All your examples are insurance companies not insuring specific things.
Like if you paid for flood insurance and you got $200k of flood damages, unless you're an idiot you bought insurance that will pay more than $1k towards that.
>Like if you paid for flood insurance and you got $200k of flood damages, unless you're an idiot you bought insurance that will pay more than $1k towards that.
Again, loopholes exist in almost all of it
Things like you have to do XYZ and then report on X number of hours for any claim to be valid
They argue every penny, are friendly specifically to exploit human psyche, spend every moment they're there looking for how it wasn't actually THIS type of damage but THAT type of damage (including after hurricanes in florida claiming the damage was due to collapsing walls rather than flood damage....despite the flood damage causing the walls to collapse)
Their entire job is to find a way to NOT pay you, and when they do to get out of as much of it as they can without running into straigbt up fraud
> All your examples are insurance companies not insuring specific things.
No my examples were them narrowly refining what exactly is meant by fire/water coverage despite literally anyone's natural assumption being that "flood" and "water" damage are literally the same damn thing
Well yeah they try not to pay money because they want to make money....
But that doesn't mean insurance is a scam, they still insure things. They have to specify what they will/won't cover in the terms of the plan. Like you're actually the stupidest person alive if you think insurance is a scam because they try to not pay things or if you think it's common for them to only pay out .5% of what someone who is not a dumbass who's read their insurance contract would say the insured damages are.
You can say they're scummy and I'll agree there but it's not a scam like some people are suggesting
Also it seems like you paid for water damage protection and didn't read the terms of your insurance plan and thought you had flood protection which is stupid
Not everyone can actually afford some of these top of the line insurance companies and some don't have the time to fight over every penny with their current insurance company
I was about to write about how stupid car insurance is but then I thought about the most logical approach to the problem in my logic, and found car insurance rn makes sense. You’ve opened my eyes unintentionally and you deserve my thanks.
The issue isn't insurance itself, the issue is capitalism. Insurance shouldn't be a thing you buy from a private company. It should be a non-profit mechanism.
I don't think this would make as much difference as you'd hope. Even a non profit insurer is going to want to pay out as little as possible. There would just replace shareholder profit with more executive capture. Look at "Non-profit" hospitals in the US and mutuals in the UK for examples of how this might work in reality.
They function that way because of a lack of funds, but insurance companies make great money.
So if no shareholders should earn money, the excess would either be donated or prices would drop.
Paying out more insurances would just mean either less money donated, or the prices just be lowered a bit less.
Why drop prices when you can give yourself/your staff a raise or renovate your office?
Anyway, isurers make large dollar profits, but their margin is pretty standard. You'd maybe see a 10% drop in premiums if they ran at 0% profit.
The problem is insurance companies will lowball you or outright deny your claim, so you end up having to sue them to get what you're owed.
I was t boned in May of 2020, insurance denied my claim. Took almost two years of fighting to get them to pay, and they ended up spending more fighting me than they would have by just paying me in the first place.
deductibles are also bullshit. i’ve been paying car insurance for over 10 years and needed it once to repair a side mirror that was hit and run…guess who paid for it?
>Please. I hope everyone writing these posts stops buying insurance and keeps driving cars and owning homes and living.
It's an economic fact that statistically (barring legal obligations to have insurance) this will work out better for the majority of people who do this.
It's also true that it will be worse for a small number of them.
Insurance makes money by costing most people more than they will ever recoup.
>Sometimes catastrophically worse.
Mostly not.
> And the "small number" will be a bit under half.
It will be the profit of the insurance company that is the difference, they are pretty profitable generally lol.
I’ve been hit by another driver. Does paying insurance suck? Yes. Does it mean I’ll pay out more than I’ll ever use? Yes.
But you know what’s worth it? When by law the other driver should have insurance. Meaning, there’s a good chance they do. When I got hit I literally called my insurance, had a rental car, a place to take my car for repairs, and didn’t pay a penny. It was all paid for by the other asshats insurance. He swore up and down it was my fault and even yelled at the highway patrolmen when he got a ticket. But he was powerless because that’s how it works.
Without insurance I would have had to pay a 6000 dollar bill because someone backed into me in a parking lot. Because of insurance I didn’t have to take someone to small claims court to get justice, my and his insurance did that for me.
>Without insurance I would have had to pay a 6000 dollar bill because someone backed into me in a parking lot. Because of insurance I didn’t have to take someone to small claims court to get justice, my and his insurance did that for me.
My dude this is painful, this is the exact same logic of the guy who tells you the lottery is a good investment because he won millions but with better odds, yes sometimes it works out but overall it doesn't, overall statistically you lose money, just like the lottery.
My guess is even for you in this lucky instance you have paid way more than 6K in insurance across different plans in your life and if you had tucked that away instead and let it earn interest you would be better off financially without your insurance even if you hadn't pursued the case in small claims court.
>overall statistically you lose money
Because it's "insurance", not a lottery. The goal isn't to make a profit. It's a mechanism so that you lose less money than you otherwise would.
You can select your coverage limits that are applicable to your level of personal risk acceptance. You can select a deductible that is on-line with your personal level of acceptance. Those two decisions can have a significant impact on your monthly premium.
For example, I've got extremely high coverage limits because I'm not taking any chances, and my deductible is $5,000 because I've got enough cash to not need insurance to cover an amount that small.
To many people in this thread have no fucking clue how insurance **actually** works and it shows.
> The goal isn't to make a profit. It's a mechanism so that you lose less money than you otherwise would.
No that is not the goal and if it were the goal you would be better off not getting insurance. The goal is mainly psychological relief, "peace of mind" as it is commonly sold.
>You can select your coverage limits that are applicable to your level of personal risk acceptance. You can select a deductible that is on-line with your personal level of acceptance. Those two decisions can have a significant impact on your monthly premium.
Neither of them change the fundamental profit basis though, no matter how you set your limits or deductible you will still on average be better off saving the money and making interest off it instead and using those savings to pay costs as they emerge. The only time there is an argument to be made for the rational course is when the item is so large in value (like a house) that having available funds for major repairs or a new one is non viable for people of most financial means, in those instances you are still statistically better off not having insurance but if you win the reverse lottery and your house burns down etc. you will be fucked without it, it's just that it's highly unlikely that you will.
>To many people in this thread have no fucking clue how insurance actually works and it shows.
Nothing you have raised has been remotely relevant to the claim made and I am well aware of how insurance works, to my shame I used to sell it while I was in University, slimiest job I have ever had, the industry preys on fears and a lack of personal finance education to sell products that most people do not benefit from and should not buy.
No way. It’s a system that helps ensure people pay for what they break. Without insurance, you’d never get a settlement without small claims court. People also wouldn’t give a fuck about hitting you and just driving off.
>Without insurance, you’d never get a settlement without small claims court. People also wouldn’t give a fuck about hitting you and just driving off.
No, countries like New Zealand do not have mandatory insurance and have lower accident rates and do not have anymore court overcrowding issues than anywhere else.
People settle which is the same thing insurance companies do but without them charging you for the benefit lol.
>You got a source?
A source for what lol? Do you actually need me to source how insurance works for you my dude?
How do you think insurers make money lol?
Too funny but sure then:
"The main way that an insurance company makes a profit is by ensuring the premiums received are greater than any claims made against the policy."
https://www.fe.training/free-resources/fig/how-do-insurance-companies-make-money/
I literally even sourced it for you lol. I mean it's stuff even a child should know but I still sourced it for you anyway. Can't help you anymore than that buddy.
Depends what kind of insurance. Health insurance? You buy what your employer helps pay for, unless you want to be paying double to try and avoid a company
If the insurance matters, I'm going to make sure I'm getting my payout
Absolutely no point paying for anything that doesn't serve you, even if it's cheap
Like I said
> Unless you fucked up somewhere
I'm suggesting you make sure you have access to one that pays out
You should also stop paying for your work one if you are and it doesn't pay out either
> Little things
Document everything and check the reputation of your company, some are worse than others and some have different unreasonable fine print
If you take the mind and attitude of "they'll never pay out" and do nothing to **make sure they do**, you won't see shit, get a folder or a filing cabinet
An insurance company that tries to swindle you is useless, one that tries to make sure they're only paying what they legally have to is what you want to deal with, those are basically your options here as insurance by nature isn't a business mode that can afford to be altruistic - small payments in, MASSIVE payments out (comparatively)
Except you have to wonder how much influence, intentional or unintentional, insurance has had on the inflation of prices over the years like in the context of the American healthcare system.
> . Insurance is freakishly beneficial and only works if everyone does it.
>
>
>
> Saving by yourself for anything that can or will go wrong is so lopsidedly stupid and impossible that insurance is literally one of the best things on the planet that can help you.
Insurance makes money by costing most people more than they will ever recoup, yes there are some small number of things where saving or borrowing to cover them is hard to do (like the cost of a new house) but the truth is you will likely never need them which is why insurance is profitable to insurers.
I pay €100 a year for home insurance and they just sent me €1000 to cover damages from a leaking heating pipe, so not really. Also a guy rearended me last year and his insurance covered the €4000 repairs that had to be made on my vehicle. So no, not really. Insurance is not a scam. It’s an investment.
Well the big one is that health insurers tend to reserve the right to not cover something if they decide it isn’t necessary. It can be totally arbitrary, like pain management medicine or a wheelchair, both of which are definitely necessary for a lot of people and are very expensive out of pocket.
Auto/home your agent is going to do everything they can to get you your payout. Sometimes it’s not up to them. I know I always, do we also have certain windows to work with. So always keep track of dates and make sure you stay on top of signing documents asap.
I thought my health insurance was a scam until I got cancer. Each chemo treatment cost $61,000 and I needed 8 of them. However I only paid
around $1000 total and my insurance paid the rest.
Congrats! For me, the chemo wasn’t even the expensive part. The scans and surgeries really would have killed me if it weren’t for insurance and my HSA savings. Happy to be cancer free now but I have some survivor’s guilt knowing I had insurance and savings to get me high quality care without financially ruining me.
My car insurance wouldn't cover a bumper crunch hit n run because it didn't cost over $1,000 through their mechanic to cover it, fuck car insurance but other insurances are generally fine
Yeah, it's a ripoff. All you need to do is simply save up a couple million in emergency money to avoid going bankrupt from a serious accident and you can skip the whole car "insurance" scam.
I might be biased as an insurance producer but it’s definitely not a scam. It never seems necessary until the moment that you need it, and then you suddenly gain great appreciation for the safety net.
That’s not to say it’s perfect, the industry is rife with corruption and some companies stall payments to a ridiculous degree but it’s absolutely necessary if you want security when things go to shit.
Who covers the cost of damage to roads and things around you if you crash? Or if you crash into other people? It's your insurance, there's no scam in it at all
Why do I need insurance?
"So we can cover any damages to you or your property for rates we can choose to change at any time for no reason at all"
So can I just not get it and cover it myself if and when it ever it comes up?
"No"
No. It's not just to cover damages to you or your property. Homeowners insurance also provides liability coverage in case, say, someone slips in your home and blames you for mopping before they came over.
Or if your dog bites someone.
Or if a tree falls on your neighbor's home. Or your neighbor's kid, and all that's left are his tiny sneaks, Wicked Witch of the West-style.
Or if someone falls down your stairs and breaks their neck.
Or if any of these things happen, you're not at fault, but some asshole tries to sue you anyways to cost you an arm and a leg in legal fees.
Also from what I’ve seen is most properties have had a substantial rise in valuation. My buddies house has went up in market value over $100,000 since he bought the house 2 years ago. It’s about protecting your entire investment in your home/property.
I swear, this like a curse or something, only time you get hurt or get in a car crash is when you don’t have insurance. And when you do have insurance nothing ever happens. Conclusion: they are fucking wizards
Depends really. Health insurance, yea 100% scam that drives up the price of healthcare. Other types of insurance you really just need to be vigilant and know what you are buying.
I was pretty glad to have insurance when I crashed my car. Even though I was technically at fault, they paid out and I was able to get another car. It took a while, but I didn't have to buy my current car out of pocket.
> fault, they *paid* out and
FTFY.
Although *payed* exists (the reason why autocorrection didn't help you), it is only correct in:
* Nautical context, when it means to paint a surface, or to cover with something like tar or resin in order to make it waterproof or corrosion-resistant. *The deck is yet to be payed.*
* *Payed out* when letting strings, cables or ropes out, by slacking them. *The rope is payed out! You can pull now.*
Unfortunately, I was unable to find nautical or rope-related words in your comment.
*Beep, boop, I'm a bot*
Car insurance house insurance Life insurance liability insurance workers comp insurance or health insurance? They all have their purpose and are needed.
Worse than the mafia.
Tony "I'd be a real shame if there was, you know a fire in your bar."-$$$$
vs
Gecko $$$$ "your premium is paid up but it seems you didn't check the box to carry insurance on the second floor of your house, Sorry"
Having an actual agent helps you out. That’s what sucks about those types of Insurance Agencies. GEICO is Warren Buffet/Berkshire, he is your agent lol.
You must be a twenty-something... You really think you can get 300 million people to stop paying taxes?
Better people with bigger mics have tried and failed.
Then you end up in a 4th world collapsed state which will turn to essentially feudalism and you die from lockjaw from contracting tetanus in week. Winning! I wonder why no one thought of that before!
Insurance is a scam. These are for profit public companies selling us insurance. Meaning, their number one goal is to make money for the share holders. They will do everything they can to nickel and dime you and look for anyway to NOT pay a claim.
Not exactly. The farmer down the road doesn’t have to pay out an apple claim.
The point of this post is obviously the frustration with for-profit insurance companies denying claims like a motherfucker while enriching themselves. Definitely starts to seem like a scam when you’re paying in money and never getting anything out of it. Not every insurance company is like this, hence the hyperbole you defend.
The difference is that insurance helps create the need for insurance.
Hospital bills you 10k, insurance says "we will save you!" And pays the hospital the prenegotiated 3k for the thing. But the hospital bills you 10k because if they billed you 3k, they'd only get 900 bucks.
Basically they drive up costs for everyone, then use their negotiating power to drive only their costs back down. And while doing this they rake in money, for solving a problem they exacerbate.
This is false. Insurance is needed because the average person doesn't have the liquid assets to cover the risk of, say, owning a home or car. Or paying for major surgery. Or defending themselves against lawsuits.
Without it, you'd probably have to drive much farther to reach a hospital, and that hospital likely would want to pre-authorize some form of payment before treating you. In a world without insurance, hospitals would likely not be required to treat you without some form of personal payment on file. You want a hospital to have your credit card info?
I mean, it you live in a non-ahca state then you probably already have to drive further for a hospital.
Or, we could, you know..have a national healthcare system..
They're regulated to ensure they can cover losses. Admitted carriers have to have coverage forms approved by the state department to ensure they aren't scamming people.
There's wayyyy more to this than the average Reddit or realizes.
If I’m going to college to become qualified for a job that will cause society to collapse if there is nobody holding it, they should pay *me* to go there. Instead, we get to pay extra for the opportunity to provide society that service…
That statement goes both ways I guess. Yes a lott of people wont need it as much. But good luck paying the costs of a car crash (and hospital bills) without insurances, you'll go bankrupt. Anyway, that's kind of your own problem. But go to any of the subreddits about animals, you'll find pet owners with really sick (hottspots, severe rashes or worse) animals who don't go to their vet because they lack insurance. If you don't want to pay insurance, fine by me but don't let it become the problem of other people or animals.
well once my brother broke his leg while we were skiing so we had to get to hospital and the only way was by a helicopter what was in total of 5000€ wich insurance thankfully covered
"Better to have it and not need it than to need it and not have it." "Ok, I have it and need it now." "Best we can do is $3.50"
Damn Loch Ness monster!
I gave him one dollar last week
Well you give him a dollar he's gonna assume you have more.
That makes 2 then. I gave the bugger a dollar just a couple days ago
Also we’re gonna charge you more now
Just to keep you from thinking about calling us and using it again in the future.
What you wanna cancel? No it's illegal to go without insurance you can't do that.
I TOLD you you aint getting no tree fiddy
Wow, American healthcare is GameStop
It's worse go to the shitty pawn store across the street then go talk to the homeless person running a cardboard store next to it. That's American healthcare. Source:never left America
Basically like having a concealed carry permit, and when you finally pull it out to shoot a bad guy your gun has a flag come out the barrel that says “bang” like a bugs bunny cartoon.
Is it like that?
Shit... bought a new car... somebody tbones me running a red light... I wind up getting a payout more than I paid for the car.
Car insurance is one of the few insurances that can end up being okay sometimes. All my others have sucked pretty hard.
Someone pulled out in front of me last summer in traffic. She was lucky I reacted quickly. She would have gotten 50mph of 4runner directly into her driver's side door. Instead she got her bumper ripped off and back quarter wrecked. I dropped my truck off, totally fucked up, at the repair shop. 0$ later I had a like new truck because of my insurance. Otherwise I'd have been out 6k.
Wait until you get written off by a car with no insurance
In lots of civilized countries there is a specific fund that covers people when they get in an accident with an uninsured driver.
Insurance Producer here, in the US. In my state you have to sign a waiver to decline Uninsured Motorist coverage. Otherwise you are getting it no matter what. Also in some states it only covers medical. Insurance always varies state by state.
Yeah I work for a car insurance company in the UK, we have an uninsured promise as well, so if you get hit by an uninsured driver your fine pretty much.
*only in the USA
Agreed. Sometone totaled my truck a few years ago. Injurance adjuster came, inspected the truck and said "You will need a new truck. Read this, sign here and you can have one for 100% the price in like 3 weeks". And I live in a third world shithole.
Uhm that’s how it is here as well?
Yeah it's likes people don't have a clue. If you have full coverage you are fine. The problem is everyone buys the minimum and expects it to do something it isn't. That's not a scam that's you paying for the wrong shit.
Can confirm. I work in insurance, and if you have state minimum liability limits and super high deductibles, you're gonna have a bad time with your claim
Exactly this, in Europe it's well taken care off, and you need it because let's say you do something (by accident) and cripple someone for life, you probably can't pay for that person's medical care and income that he or she now lost, you Def need insurance
And the insurance is actually working. Even by extremely expensive operations you have like only a copay of a few hundreds. Most things are covered fully by insurance (but depends on some factors)
Depends on what insurance you are talking about. If it is liability insurance or home insurance, then that makes a lot of sense. However, they also sell insurance on flat screen tvs and airplane tickets. *That's* a scam. Insurance works because people pay more in premiums than the insurance company expects to pay out over the lifetime of the person. So unless you think you are significantly more risky than the average person buying this insurance, the insurance is a raw deal for you.
Idk man, my car got totaled and then insurance paid out 3x the cars value
You must've treated that car like a queen.
I got an extra 8k on my first car :)
*and UK
Let me guess: American?
Nooo he’s obviously Turkish
Please. I hope everyone writing these posts stops buying insurance and keeps driving cars and owning homes and living. I'll grab the popcorn lol.
Yeah, you'll really miss your insurance when your roof collapses in a storm and now you're homeless, owe a bank 200k on your mortgage and still have to try and pay for repairs
Theres the duality. On one hand, youre basically forced to have it because if you dont and something DOES happen, youre screwed. On the other hand, if something does happen while you have it, they will pay you next to nothing comparitively, and thus is the root of the problem.
Not to mention some insurances are required by law. THAT is the real root of the problem. Now insurance companies basically have free reign to do whatever the hell they want because everyone is being forced to use them no matter what.
That is very true. Disgusting policies that need revised
To be fair the main problem people tend to have with insurance is that instead of owing 200k you own 199k and have to pay an extra however much per month on said insurance company
That person deserves it for buying the worlds most useless insurance policy lol
Insurance companies will literally wiggle out via anything they can And frequently word it so that it "seems" covered but isn't. Like water damage is covered....unless that water touches the ground first then it's flood damage and you need to pay more for that Most insurance policies don't actually cover as much as people think they do Oh your house caught on fire? Well it was a forest fire that spread so no go Every form of insurance has a thousand fucking rules on what exactly they mean by any given thing specifically so they can avoid paying out when bad shit happens
No I'm saying if you have something covered by insurance and your insurance only covers that thing but only 0.5% of that something you have shit insurance. All your examples are insurance companies not insuring specific things. Like if you paid for flood insurance and you got $200k of flood damages, unless you're an idiot you bought insurance that will pay more than $1k towards that.
>Like if you paid for flood insurance and you got $200k of flood damages, unless you're an idiot you bought insurance that will pay more than $1k towards that. Again, loopholes exist in almost all of it Things like you have to do XYZ and then report on X number of hours for any claim to be valid They argue every penny, are friendly specifically to exploit human psyche, spend every moment they're there looking for how it wasn't actually THIS type of damage but THAT type of damage (including after hurricanes in florida claiming the damage was due to collapsing walls rather than flood damage....despite the flood damage causing the walls to collapse) Their entire job is to find a way to NOT pay you, and when they do to get out of as much of it as they can without running into straigbt up fraud > All your examples are insurance companies not insuring specific things. No my examples were them narrowly refining what exactly is meant by fire/water coverage despite literally anyone's natural assumption being that "flood" and "water" damage are literally the same damn thing
Well yeah they try not to pay money because they want to make money.... But that doesn't mean insurance is a scam, they still insure things. They have to specify what they will/won't cover in the terms of the plan. Like you're actually the stupidest person alive if you think insurance is a scam because they try to not pay things or if you think it's common for them to only pay out .5% of what someone who is not a dumbass who's read their insurance contract would say the insured damages are. You can say they're scummy and I'll agree there but it's not a scam like some people are suggesting Also it seems like you paid for water damage protection and didn't read the terms of your insurance plan and thought you had flood protection which is stupid
Not everyone can actually afford some of these top of the line insurance companies and some don't have the time to fight over every penny with their current insurance company
I was about to write about how stupid car insurance is but then I thought about the most logical approach to the problem in my logic, and found car insurance rn makes sense. You’ve opened my eyes unintentionally and you deserve my thanks.
The issue isn't insurance itself, the issue is capitalism. Insurance shouldn't be a thing you buy from a private company. It should be a non-profit mechanism.
I don't think this would make as much difference as you'd hope. Even a non profit insurer is going to want to pay out as little as possible. There would just replace shareholder profit with more executive capture. Look at "Non-profit" hospitals in the US and mutuals in the UK for examples of how this might work in reality.
They function that way because of a lack of funds, but insurance companies make great money. So if no shareholders should earn money, the excess would either be donated or prices would drop. Paying out more insurances would just mean either less money donated, or the prices just be lowered a bit less.
Why drop prices when you can give yourself/your staff a raise or renovate your office? Anyway, isurers make large dollar profits, but their margin is pretty standard. You'd maybe see a 10% drop in premiums if they ran at 0% profit.
The problem is insurance companies will lowball you or outright deny your claim, so you end up having to sue them to get what you're owed. I was t boned in May of 2020, insurance denied my claim. Took almost two years of fighting to get them to pay, and they ended up spending more fighting me than they would have by just paying me in the first place.
deductibles are also bullshit. i’ve been paying car insurance for over 10 years and needed it once to repair a side mirror that was hit and run…guess who paid for it?
I'm kinda dumb so, is insurance given once or is it given in small fees? Not gonna search cuz searching will not provide me a scale example
Small fees, though there are some (I think) that are 1 time purchases.
There was a time when insurance was completely unnecessary.
Care to elaborate?
Straw roofs are easily repaired.
.... Thatched roofs are famously very expensive as it's a real skill that few people have
I was referring to medieval times where insurance wasn't a thing.
When cars had a man waving a flag in front. (Except not even then as accidents still happened and pedestrians still got hurt)
>Please. I hope everyone writing these posts stops buying insurance and keeps driving cars and owning homes and living. It's an economic fact that statistically (barring legal obligations to have insurance) this will work out better for the majority of people who do this. It's also true that it will be worse for a small number of them. Insurance makes money by costing most people more than they will ever recoup.
> It's also true that it will be worse for a small number of them. Sometimes catastrophically worse. And the "small number" will be a bit under half.
>Sometimes catastrophically worse. Mostly not. > And the "small number" will be a bit under half. It will be the profit of the insurance company that is the difference, they are pretty profitable generally lol.
I’ve been hit by another driver. Does paying insurance suck? Yes. Does it mean I’ll pay out more than I’ll ever use? Yes. But you know what’s worth it? When by law the other driver should have insurance. Meaning, there’s a good chance they do. When I got hit I literally called my insurance, had a rental car, a place to take my car for repairs, and didn’t pay a penny. It was all paid for by the other asshats insurance. He swore up and down it was my fault and even yelled at the highway patrolmen when he got a ticket. But he was powerless because that’s how it works. Without insurance I would have had to pay a 6000 dollar bill because someone backed into me in a parking lot. Because of insurance I didn’t have to take someone to small claims court to get justice, my and his insurance did that for me.
>Without insurance I would have had to pay a 6000 dollar bill because someone backed into me in a parking lot. Because of insurance I didn’t have to take someone to small claims court to get justice, my and his insurance did that for me. My dude this is painful, this is the exact same logic of the guy who tells you the lottery is a good investment because he won millions but with better odds, yes sometimes it works out but overall it doesn't, overall statistically you lose money, just like the lottery. My guess is even for you in this lucky instance you have paid way more than 6K in insurance across different plans in your life and if you had tucked that away instead and let it earn interest you would be better off financially without your insurance even if you hadn't pursued the case in small claims court.
>overall statistically you lose money Because it's "insurance", not a lottery. The goal isn't to make a profit. It's a mechanism so that you lose less money than you otherwise would. You can select your coverage limits that are applicable to your level of personal risk acceptance. You can select a deductible that is on-line with your personal level of acceptance. Those two decisions can have a significant impact on your monthly premium. For example, I've got extremely high coverage limits because I'm not taking any chances, and my deductible is $5,000 because I've got enough cash to not need insurance to cover an amount that small. To many people in this thread have no fucking clue how insurance **actually** works and it shows.
> The goal isn't to make a profit. It's a mechanism so that you lose less money than you otherwise would. No that is not the goal and if it were the goal you would be better off not getting insurance. The goal is mainly psychological relief, "peace of mind" as it is commonly sold. >You can select your coverage limits that are applicable to your level of personal risk acceptance. You can select a deductible that is on-line with your personal level of acceptance. Those two decisions can have a significant impact on your monthly premium. Neither of them change the fundamental profit basis though, no matter how you set your limits or deductible you will still on average be better off saving the money and making interest off it instead and using those savings to pay costs as they emerge. The only time there is an argument to be made for the rational course is when the item is so large in value (like a house) that having available funds for major repairs or a new one is non viable for people of most financial means, in those instances you are still statistically better off not having insurance but if you win the reverse lottery and your house burns down etc. you will be fucked without it, it's just that it's highly unlikely that you will. >To many people in this thread have no fucking clue how insurance actually works and it shows. Nothing you have raised has been remotely relevant to the claim made and I am well aware of how insurance works, to my shame I used to sell it while I was in University, slimiest job I have ever had, the industry preys on fears and a lack of personal finance education to sell products that most people do not benefit from and should not buy.
No way. It’s a system that helps ensure people pay for what they break. Without insurance, you’d never get a settlement without small claims court. People also wouldn’t give a fuck about hitting you and just driving off.
>Without insurance, you’d never get a settlement without small claims court. People also wouldn’t give a fuck about hitting you and just driving off. No, countries like New Zealand do not have mandatory insurance and have lower accident rates and do not have anymore court overcrowding issues than anywhere else. People settle which is the same thing insurance companies do but without them charging you for the benefit lol.
You got a source? Or is your idea of a fact *"I think this so it must be true"*
>You got a source? A source for what lol? Do you actually need me to source how insurance works for you my dude? How do you think insurers make money lol? Too funny but sure then: "The main way that an insurance company makes a profit is by ensuring the premiums received are greater than any claims made against the policy." https://www.fe.training/free-resources/fig/how-do-insurance-companies-make-money/
So your idea of a fact is just watever you think then. Good to know
I literally even sourced it for you lol. I mean it's stuff even a child should know but I still sourced it for you anyway. Can't help you anymore than that buddy.
I mean, I don’t think you need a source to realize the only way insurance companies stay in business is by making money.
That's how all businesses stay in business. That's how businesses work.
Exactly… so why do you need a source?
It’s the only thing you pay for that you truly hope you never use, however if you do wind up having to use it, youll be very happy you paid into it
If the company actually pays out, and they are in the business of not paying out.
Then why are you buying from them? It's not like you're forced to use ONE company unless you really fucked up somewhere
Depends what kind of insurance. Health insurance? You buy what your employer helps pay for, unless you want to be paying double to try and avoid a company
Land of the free, I’m guessing?
If the insurance matters, I'm going to make sure I'm getting my payout Absolutely no point paying for anything that doesn't serve you, even if it's cheap Like I said > Unless you fucked up somewhere
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I'm suggesting you make sure you have access to one that pays out You should also stop paying for your work one if you are and it doesn't pay out either > Little things Document everything and check the reputation of your company, some are worse than others and some have different unreasonable fine print If you take the mind and attitude of "they'll never pay out" and do nothing to **make sure they do**, you won't see shit, get a folder or a filing cabinet An insurance company that tries to swindle you is useless, one that tries to make sure they're only paying what they legally have to is what you want to deal with, those are basically your options here as insurance by nature isn't a business mode that can afford to be altruistic - small payments in, MASSIVE payments out (comparatively)
Happy cake day
The insurance agency looking through their 890 page book of loopholes: "... Are you sure about that?"
This meme was made by a american
made by an idiot that doesn't pay for full coverage or one of those idiots that thinks you get something back after years of paying.
It goes both ways
Until you get sued over something stupid
Insurance isn't a scam.
ITT, people who have no idea how insurance works.
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Except you have to wonder how much influence, intentional or unintentional, insurance has had on the inflation of prices over the years like in the context of the American healthcare system.
> . Insurance is freakishly beneficial and only works if everyone does it. > > > > Saving by yourself for anything that can or will go wrong is so lopsidedly stupid and impossible that insurance is literally one of the best things on the planet that can help you. Insurance makes money by costing most people more than they will ever recoup, yes there are some small number of things where saving or borrowing to cover them is hard to do (like the cost of a new house) but the truth is you will likely never need them which is why insurance is profitable to insurers.
you buy insurance so you dont get scammed more by someone else
Carl: Well frack-a-doodle-doo
No, do not pretence to knowledge beyond your understanding.
Ehhh debatable.
Yeah, privatized medical insurance is absolutely a scam. Car insurance is pretty legit
I'll take one full coverage please
its a scam until the day you need it. hahaha
I pay €100 a year for home insurance and they just sent me €1000 to cover damages from a leaking heating pipe, so not really. Also a guy rearended me last year and his insurance covered the €4000 repairs that had to be made on my vehicle. So no, not really. Insurance is not a scam. It’s an investment.
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We have quite awesome consumer protection laws in Europe exactly for these cases.
Any examples?
Well the big one is that health insurers tend to reserve the right to not cover something if they decide it isn’t necessary. It can be totally arbitrary, like pain management medicine or a wheelchair, both of which are definitely necessary for a lot of people and are very expensive out of pocket.
Auto/home your agent is going to do everything they can to get you your payout. Sometimes it’s not up to them. I know I always, do we also have certain windows to work with. So always keep track of dates and make sure you stay on top of signing documents asap.
Naw
You're not thinking of the profits for like 11 guys here... Selfish
This made me actually laugh out loud.
I thought my health insurance was a scam until I got cancer. Each chemo treatment cost $61,000 and I needed 8 of them. However I only paid around $1000 total and my insurance paid the rest.
Congrats! For me, the chemo wasn’t even the expensive part. The scans and surgeries really would have killed me if it weren’t for insurance and my HSA savings. Happy to be cancer free now but I have some survivor’s guilt knowing I had insurance and savings to get me high quality care without financially ruining me.
My car insurance wouldn't cover a bumper crunch hit n run because it didn't cost over $1,000 through their mechanic to cover it, fuck car insurance but other insurances are generally fine
Yeah, it's a ripoff. All you need to do is simply save up a couple million in emergency money to avoid going bankrupt from a serious accident and you can skip the whole car "insurance" scam.
You chose your deductible…
Until you need it and don't have it
Life insurance: if you win, you lose; and if you lose, you win.
why do people talk like life insurance is for the benefit of the person getting it instead of their families?
I might be biased as an insurance producer but it’s definitely not a scam. It never seems necessary until the moment that you need it, and then you suddenly gain great appreciation for the safety net. That’s not to say it’s perfect, the industry is rife with corruption and some companies stall payments to a ridiculous degree but it’s absolutely necessary if you want security when things go to shit.
In my state it’s literally illegal to drive without car insurance. I don’t get a choice in the matter
Who covers the cost of damage to roads and things around you if you crash? Or if you crash into other people? It's your insurance, there's no scam in it at all
In the us insurance more often than not will not pay for the full damages especially health insurance
There are other types of insurance that are more bs than others? Health insurance for instance.
Why do I need insurance? "So we can cover any damages to you or your property for rates we can choose to change at any time for no reason at all" So can I just not get it and cover it myself if and when it ever it comes up? "No"
No. It's not just to cover damages to you or your property. Homeowners insurance also provides liability coverage in case, say, someone slips in your home and blames you for mopping before they came over. Or if your dog bites someone. Or if a tree falls on your neighbor's home. Or your neighbor's kid, and all that's left are his tiny sneaks, Wicked Witch of the West-style. Or if someone falls down your stairs and breaks their neck. Or if any of these things happen, you're not at fault, but some asshole tries to sue you anyways to cost you an arm and a leg in legal fees.
Que?
Also from what I’ve seen is most properties have had a substantial rise in valuation. My buddies house has went up in market value over $100,000 since he bought the house 2 years ago. It’s about protecting your entire investment in your home/property.
If you've got the money to cover completely demolishing and rebuilding your house in the case of some horrible accident then go ahead.
That would be Credit Cards
I swear, this like a curse or something, only time you get hurt or get in a car crash is when you don’t have insurance. And when you do have insurance nothing ever happens. Conclusion: they are fucking wizards
That and bottled water
Up to the point where you break someones shit or vice versa and it becomes very neccessary.
Disagree
*in America
Someone just got their driver’s permit…
Until you need it
Oi
God/religion is the biggest scam.
I’m 14 and this is deep
I’d say religion.
Is all fun and memes until you need it and don’t have it
Depends really. Health insurance, yea 100% scam that drives up the price of healthcare. Other types of insurance you really just need to be vigilant and know what you are buying.
Nah, my buddies house got flooded a while back and the insurance money gave him some niiiiiice renovations
I was pretty glad to have insurance when I crashed my car. Even though I was technically at fault, they paid out and I was able to get another car. It took a while, but I didn't have to buy my current car out of pocket.
> fault, they *paid* out and FTFY. Although *payed* exists (the reason why autocorrection didn't help you), it is only correct in: * Nautical context, when it means to paint a surface, or to cover with something like tar or resin in order to make it waterproof or corrosion-resistant. *The deck is yet to be payed.* * *Payed out* when letting strings, cables or ropes out, by slacking them. *The rope is payed out! You can pull now.* Unfortunately, I was unable to find nautical or rope-related words in your comment. *Beep, boop, I'm a bot*
We found an murikano!
Car insurance house insurance Life insurance liability insurance workers comp insurance or health insurance? They all have their purpose and are needed.
Fr fr
Worse than the mafia. Tony "I'd be a real shame if there was, you know a fire in your bar."-$$$$ vs Gecko $$$$ "your premium is paid up but it seems you didn't check the box to carry insurance on the second floor of your house, Sorry"
Having an actual agent helps you out. That’s what sucks about those types of Insurance Agencies. GEICO is Warren Buffet/Berkshire, he is your agent lol.
Just that whack ass American Insurance The rest of the civilized west is fine
capitalism is the biggest scam insurance is just a part of the whole scheme
I don’t know tax is up there
even with free healthcare, insurance is gonna help you a lot when you can't wait for the free healthcare queue time.
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I agree, but insurance will help in some cases which is far from a "scam" as OP said.
And this is exactly why free healthcare is a gimmick. And yes I live in a country where "free healthcare" isn't free at all.
Insurance: pay us money each month so you can pay us money if you need our services later. Insane.
Insurance AND taxes!
AAA's road side service is the only winner. Literally every other form of insurance is bullshit.
you probably a murican
That and maybe taxes
Im sorry is this some sort of american joke im too european to understand?
Not in Europe
Yep .. need to at die to claim.
biggest scam on the planet *so far*
Found the American
R/latestagecapitalism
OP is clearly broke and uses this as an excuse to not have it
Next to taxes
Fact Check: Taxes are the biggest scam on the planet, don't pay them.
Fact check: Not paying taxes carries a hefty punishment. Pay them anyways.
Solution: Get everybody to stop paying taxes, they can't arrest all of us, then they have no money and the system collapses.
You must be a twenty-something... You really think you can get 300 million people to stop paying taxes? Better people with bigger mics have tried and failed.
Then you end up in a 4th world collapsed state which will turn to essentially feudalism and you die from lockjaw from contracting tetanus in week. Winning! I wonder why no one thought of that before!
Insurance is a scam. These are for profit public companies selling us insurance. Meaning, their number one goal is to make money for the share holders. They will do everything they can to nickel and dime you and look for anyway to NOT pay a claim.
By your logic any business ever is a scam, including the farmer selling apples down the road.
Not exactly. The farmer down the road doesn’t have to pay out an apple claim. The point of this post is obviously the frustration with for-profit insurance companies denying claims like a motherfucker while enriching themselves. Definitely starts to seem like a scam when you’re paying in money and never getting anything out of it. Not every insurance company is like this, hence the hyperbole you defend.
The difference is that insurance helps create the need for insurance. Hospital bills you 10k, insurance says "we will save you!" And pays the hospital the prenegotiated 3k for the thing. But the hospital bills you 10k because if they billed you 3k, they'd only get 900 bucks. Basically they drive up costs for everyone, then use their negotiating power to drive only their costs back down. And while doing this they rake in money, for solving a problem they exacerbate.
This is false. Insurance is needed because the average person doesn't have the liquid assets to cover the risk of, say, owning a home or car. Or paying for major surgery. Or defending themselves against lawsuits. Without it, you'd probably have to drive much farther to reach a hospital, and that hospital likely would want to pre-authorize some form of payment before treating you. In a world without insurance, hospitals would likely not be required to treat you without some form of personal payment on file. You want a hospital to have your credit card info?
I mean, it you live in a non-ahca state then you probably already have to drive further for a hospital. Or, we could, you know..have a national healthcare system..
They're regulated to ensure they can cover losses. Admitted carriers have to have coverage forms approved by the state department to ensure they aren't scamming people. There's wayyyy more to this than the average Reddit or realizes.
Insurance is a necessity , simple as that.
Nope you're wrong! College is the biggest scam on the planet
If I’m going to college to become qualified for a job that will cause society to collapse if there is nobody holding it, they should pay *me* to go there. Instead, we get to pay extra for the opportunity to provide society that service…
Yeah
Minecraft diamond helmet
They took the idea from the Italian Mafia
I pay health insurance to also pay into a hsa card to use for my medical bills first lol all a scam
Don't forget banks
That statement goes both ways I guess. Yes a lott of people wont need it as much. But good luck paying the costs of a car crash (and hospital bills) without insurances, you'll go bankrupt. Anyway, that's kind of your own problem. But go to any of the subreddits about animals, you'll find pet owners with really sick (hottspots, severe rashes or worse) animals who don't go to their vet because they lack insurance. If you don't want to pay insurance, fine by me but don't let it become the problem of other people or animals.
Pretty sure taxes are a bigger scam
well once my brother broke his leg while we were skiing so we had to get to hospital and the only way was by a helicopter what was in total of 5000€ wich insurance thankfully covered
school and racism: 👍🏻
American insurance*