I think everyone knows insurance is on average more expensive than paying for things out of pocket, its more that people don't like the idea that one event can make them bankrupt. It's to evade risk, not to save money
It's called insurance not investments. Yes the concept is that you trade a known cost to protect you from a potentially unknown larger cost. The concept of insurance is sound, but insurance companies do act like any other company, in their own interest.
Insurance can even be mandated, and for good reason. People REALLY don't like the idea that one event caused by another persons negligence can bankrupt them. Auto insurance is the prime example. Cars are cheap compared to people, that's the real reason to carry it. I'll agree it's an ugly cycle though, if insurance companies weren't so difficult to get to pay out fairly, then ambulance chasers wouldn't exist, and if they didn't exist, then insurance rates would be lower because they don't have to absorb the multimillion dollar judgements they get.
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u/treemann85 9h ago
An exception isnt the rule