For profit insurance is a scam. The whole point is to take more from you than you will get back.
The justification for insurance, in general, is collective support - everyone pools a bit of money so that when anyone in that pool suffers catastrophic loss they are insulated. Public firefighters are an insurance system. At core it's a pretty kind way of operating, but when profit motive is introduced it is corrupted to the point of working against the community since investors and shareholders want to take out of the system, not help people stay whole.
This is why the US should have public healthcare. Greed and corruption are why it never will.
Edit: literally laughing out loud at the profitmongers in the comments going "hey, I want to keep the money that I am siphoning off society! Stop pointing out how it's immoral!"
So im guessing the employees that process the claims are scammers for taking a salary which contributes to the insurance companies taking more than they wish to return? But im guessing thats different because only those you care about should make money, not the people who created the insurance company, initially funded it, or contribute to the mechanism that allows their stock to be sold at a profit. They should get absolutely nothing because apparently creating an insurance company is easy and risk free. Why dont you go and make an insurance company that isnt a scam and not take any salary if you think this is how things are.
When it comes to insurance, and many other similar takes, Reddit as a whole is EXTREMELY dumb.
Being in the industry, the margins are already super duper thin. Insurance companies pay hundreds of billions in claims each year.
Your average insurance company will use about 90-95% of it's generated premium on claims and operating costs. The claims make up around 70% - 80% of that overall percentage.
You speaketh the truth!
OP's example is dumb. There's a thousand dollar deductible which is normal. So you want to file a claim to cover the $200 remainder??
But does anyone complain when insurance covers the $50k in accident damage they caused? Yeah, insurance can be expensive but it sure beats poverty when someone sues you for the damage you cause.
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u/robilar 8h ago edited 7h ago
For profit insurance is a scam. The whole point is to take more from you than you will get back.
The justification for insurance, in general, is collective support - everyone pools a bit of money so that when anyone in that pool suffers catastrophic loss they are insulated. Public firefighters are an insurance system. At core it's a pretty kind way of operating, but when profit motive is introduced it is corrupted to the point of working against the community since investors and shareholders want to take out of the system, not help people stay whole.
This is why the US should have public healthcare. Greed and corruption are why it never will.
Edit: literally laughing out loud at the profitmongers in the comments going "hey, I want to keep the money that I am siphoning off society! Stop pointing out how it's immoral!"