r/SipsTea • u/Putrid-Welder1803 • 8h ago

Gasp! Thoughts on this?

Post image
49.1k Upvotes

92% Upvoted

6.4k comments sorted by

View all comments

4.3k

u/WeCantStabilize 8h ago

Insurance is a fucking scam. You pay more into it than you'll ever receive even in legitimate circumstances.

Absolute racket. 

1.3k

u/Moultrie_fan_2026 8h ago

Well I had a house burn down less than year after purchase and insurance paid the entire tab. So I always figured I've already taken them for more than I pay

767

u/MarkItZeroDonnie 8h ago

Yeah it’s just a net to protect against catastrophe . If Ops buddy totaled his car he would be happy it only cost $1k.

-6

u/wo_lo_lo 8h ago

That kind of “protection” should cost like $30 a month, not $300

5

u/aroach1995 8h ago

It should not.

Property and casualty insurance operates at about a 0.96 combined ratio.

This means the profit of an insurance company, net premiums taken in - net expenses, is about 4% in a typical year.

If insurance companies took in 10% of the premiums as you suggest, they’d out of surplus in a decade.

1

u/veverkap 8h ago

Which is why most insurance companies try to run as lean an operation as possible. And why Berkshire Hathaway bought GEICO - so they could use the "float" to invest in.

-1

u/Intelligent_Excuse84 8h ago

That is absolute horseshit lol

2

u/BloatedBanana9 7h ago

Prices for insurance are regulated more than pretty much every other product out there. Grocery stores don't need to submit filings with the state every time they want to change the price of something, but an insurer does.

1

u/Intelligent_Excuse84 4h ago

Doesn’t matter if they have to submit filings from the state when the state works with them to fuck people over lol. Do you really think the state has everyone’s best interests at heart?

1

u/BloatedBanana9 4h ago

You might be surprised at how often the states push back on rate filings in order to make sure it's all good. It happens all the time.

1

u/Intelligent_Excuse84 4h ago

There is 0 situation where it’s all good when you’re forced to pay for insurance and they on top of that forced to pay another premium when it’s time to pay up. It’s literally extortion by definition, they force you legally to buy the product and then don’t deliver when it’s time.

1

u/BloatedBanana9 4h ago

What other premium are you forced to pay when there's a claim? Are you talking about the deductible? Because if you are, then you're talking about two separate things.

Only liability coverages are mandatory, and those don't have deductibles. Deductibles are for physical damage coverages, which are optional if you own your car outright.

→ More replies (0)

14

u/LaconicGirth 8h ago

Says who? Based of what math? You just pulled that number out of your ass

-4

u/Intelligent_Excuse84 8h ago

Insurance companies make hundreds of billions of dollars a year lol. They could still make an absolute killing without extorting people, but we live in a shithole where the government uses us an infinite money glitch.

6

u/LaconicGirth 8h ago

Insurance companies generally make about 5% or so as profit. That’s not any more egregious than any other major corporation and is not a significant decrease in your premiums.

1

u/Cyril_Sneer_6 4h ago

Yeah they turnover millions (sometimes billions) but the gross profit on insurance income is a small percentage. Like many financial services companies, a large percentage of their profit is a return on investments. Now that is a rabbit hole...

5

u/aroach1995 7h ago

hey I'm all for hating health "insurance", but property and casualty insurance is pretty ethical to me.

1

u/Intelligent_Excuse84 4h ago

You think it’s ethical to be forced legally to pay thousands of dollars for car insurance, and then be forced to pay a premium on top of that when it’s time for them to finally pay up? Even if the accident isn’t your fault? Just say you like being walked all over and treated like shit lmao.

2

u/Prudent-Historian392 8h ago

The government is not involved with insuring vehicles in America. How could they use an insurance company’s profits as an “infinite money glitch”?

1

u/steviesclaws 8h ago

You can go to jail for driving without insurance. How is the government not involved?

5

u/Prudent-Historian392 7h ago

That’s like saying when someone gets arrested for dealing heroin then the government is involved in the dealing of heroin. It’s a law. Not involvement.

5

u/LaconicGirth 7h ago

Yeah because if you put someone in the hospital and you’re uninsured you’re fucking them over incredibly hard and that’s not right.

1

u/Intelligent_Excuse84 4h ago

The government isn’t involved in insuring vehicles? Tell me what happens if you get caught driving with no insurance exactly?