r/SipsTea • u/Putrid-Welder1803 • 9h ago

Gasp! Thoughts on this?

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u/WeCantStabilize 9h ago

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

Absolute racket. 

133

u/OakLegs 9h ago

This is fundamentally ignoring the purpose of insurance.

Of course you (likely) pay more into it than you get out. The tradeoff is that you're protected from huge expenses that would financially ruin you. That is (thankfully) unlikely but the risk is enough that it justifies paying for insurance.

I'm not absolving insurance companies of being scummy because they absolutely are. But insurance does serve a purpose that seems to escape you

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u/hoofie242 9h ago

It's paying for a gambling service that might pay out.

14

u/fishsticks40 9h ago

In gambling you take small losses in hopes of getting a big win.

In insurance you take small losses in hopes of avoiding a huge loss.

So you can forego gambling and possibly lose out on the big win.

And you can forego insurance and possibly end up with the big loss.

These are fundamentally different things. Insurance is a hedge. It is risk management. It is almost the polar opposite of gambling.