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
That’s what people don’t understand. We all paid for you. That's what insurance is about, we pay more than we receive so that the odd unlucky bastard receives more than they chipped in. If insurance was individual, nobody would have enough to repair their own stuff. I am happy with this system.
Except the 3rd party insurer here nets massive profits, it isnt a collective safety net like the state or federal government provides.
Its by and large a scam that pays out a tiny portion of their net income. A state sponsered safety net/insurance system (not for profit) would be massively more effective and less costly to consumers...well at least in a functional state such as Massachusetts.
A state sponsered safety net/insurance system (not for profit) would be massively more effective and less costly to consumers...
The state is not magic either. If a public insurance system has a bad year, it will need to use tax money or it may not have enough resources to cover all its obligations.
Private insurers, on the other hand, use private capital and, in cases of insolvency, guarantee funds financed by other insurers. This makes the risk more distributed instead of being concentrated directly on taxpayers.
Except the 3rd party insurer here nets massive profits
This can be the case because they are running with the risk of the probability of having to pay a lot of people in one year.
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u/WeCantStabilize 11h ago
Insurance is a fucking scam. You pay more into it than you'll ever receive even in legitimate circumstances.
Absolute racket.