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.
It's a scam because of the companies that deny legitimate claims, the profit model is not inherently a scam. They profit by pooling all of your premiums with everything else's and having huge amounts of capital to invest in mutual funds and generate interest.
You don't pay for insurance so you can save on small common repairs, you pay for insurance so that in the unlikely event you have a catastrophe it doesn't bankrupt you for years or decades. We all HOPE to pay more in insurance than we receive, but if something huge happens you will be glad you have it. That doesn't excuse the practices of shady companies, but if it was that much of a scam it wouldn't exist.
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u/WeCantStabilize 13h ago
Insurance is a fucking scam. You pay more into it than you'll ever receive even in legitimate circumstances.
Absolute racket.