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Re: Makes sense to whom? Makes sense to me, for one.
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Posted by TML [Email] (#2212) [Profile/Gallery] (more from TML) on Fri, 17 Jun 2011 13:14:12 Share Post by Email
In Reply to: Re: Makes sense to whom? Makes sense to me, for one., Bill Homer [Profile/Gallery] , Fri, 17 Jun 2011 12:04:08
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The problem is it's not really a balanced equation. The insurance company can do anything in order to make more money. On the other hand, do we as the consumer have the ability to opt out of their service? No, insurance is mandated by law. So it really is legalized theft, even in principle. In practice, it's actually worse. You pay them to "insure" you against loss. However, after having paid for insurance, if you actually make a claim, then they don't really pay you for your loss. They give you a loan. If your claim is $5000, then they will increase your rate by $1000 per year for the next 5 years; usually even more than that, because hey, why not make another profit? The only time they ever really pay out is in the case of a liability claim, because then they don't have the ability to raise your rates by a million dollars.

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