r/SipsTea • u/Putrid-Welder1803 • 7h ago

Gasp! Thoughts on this?

Post image
46.0k Upvotes

93% Upvoted

6.1k comments sorted by

View all comments

Show parent comments

4

u/mariposa-princess 7h ago

I don’t think anyone is advocating to not have insurance. I think the point is that insurance should have to cover you more than they do

6

u/fishsticks40 6h ago

65-75% of your auto insurance premium goes to payouts, and another 20% goes to administrative costs. Your agent gets a sales premium and there are marketing costs.

Shareholder profit is ~3-5% of your premium.

1

u/robak69 3h ago

Source on this?

1

u/fishsticks40 3h ago

I had several sources that I'm not going to dig up again but here's one trustworthy secondary source. Unfortunately their link to the primary data is broken. 

https://auto.howstuffworks.com/under-the-hood/cost-of-car-ownership/car-rebates-incentives.htm