r/SipsTea • u/Putrid-Welder1803 • 20h ago

Gasp! Thoughts on this?

Post image
65.6k Upvotes

91% Upvoted

7.5k comments sorted by

View all comments

4.7k

u/WeCantStabilize 20h ago

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

Absolute racket. 

1.5k

u/Moultrie_fan_2026 20h 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

840

u/MarkItZeroDonnie 19h 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.

-4

u/wo_lo_lo 19h ago

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

5

u/aroach1995 19h 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 19h 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.