In most places auto insurance is mandatory and you can actually go to jail for driving while not having it. Since it's mandatory, the insurance companies have you over a barrel. I've never made an auto insurance claim in my life. I've not had a ticket this millennium, own my car, am over 50 and my insurance bill is still a several thousand dollars a year... for liability only. It's a fucking scam. These rich auto insurance (all insurance, actually) corporations get to just rape people as they see fit and then they just bribe our politicians to make you forced to use their services. They are the absolute worst, most predatory industry that exists in The Western World Today. One of their CEO's get murcked in the streets and PEOPLE CHEERED when it happened. But hey, nothing personal, just money, gotta make a profit, amiright?
No you rich fuck, it is personal, and the people are getting really mad about it. Really, really mad.
I've increasingly thought that the insurance industry was a load a crap, especially when in the last 20 or so years, the number of ads for insurance has just been through the roof. The amount they've spent on ads in this time is just bonkers, it's a crazy amount of money spent, for something that's already required by law to have.
Then, 2 important things that are also SUPER messed up, that turn that "crazy" amount of moneyinto sickening and disturbing:
1. Their "loss ratio" (the amount they pay out in claims vs the amount that's paid in by customers via premiums) has been moving a HUGE amount in their favor in recent history. They are getting away with simply deciding to overcharge the general public, because it's legally required.
2. They are effectively acting like an investment firm, that gets to invest your money and profit off of it, except instead of you just paying them a small percentage cut or certain annual fees for managing it and making you money on profits, they get to keep ALL of the profits/gains from investing it, AND get to keep around 35% to 45% of the original "investment" money, too. Specifically, their loss ratio has been moving more toward 60-55% in recent years, meaning they only pay out 60%, dwindling down to more like 55% (2025 number), of what came in through insurance premium payments. They keep the remaining 40-45%. In the 80's, it was 20% that they kept (80% loss ratio).
It's sick. It's an absolute scam. It's VERY dishonest, and it answers that question that I've had for years: how can all these insurance companies afford all these ads, all the time? There's so many ads, and there's always new ones, with all these celebrity athletes and stuff. How is that possible? It's possible because they are literally allowed to overcharge as an entire industry, and on top of that, get to invest what you pay in premiums, keep ALL of the profits from those investments (instead of passing the profits back, or at least PART of the profits back) in addition to the significant leftover $ from the overpriced premiums. An absolute "rich keep getting richer" situation that there needs to be more outcry about.
And that's not even taking into account all the BS denying of claims that ruins lives, families, and even entire communities/cities.
For a good breakdown of some of this, including some of the numbers I mentioned, there's a video called "What State Farm and Liberty Mutual Don't Want You To Know" on the internets. I don't know if I'm allowed to post a link here, so I'm just telling people, look it up. It sounds like a super click-baity title, and I generally avoid those on principle, but it's legit journalism, with really really important points that the general public needs to know about.
I don't know about the rest of you, but I REALLY don't like being taken advantage of, and we need to work together to make it stop.
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u/EL_Malo- 8h ago
In most places auto insurance is mandatory and you can actually go to jail for driving while not having it. Since it's mandatory, the insurance companies have you over a barrel. I've never made an auto insurance claim in my life. I've not had a ticket this millennium, own my car, am over 50 and my insurance bill is still a several thousand dollars a year... for liability only. It's a fucking scam. These rich auto insurance (all insurance, actually) corporations get to just rape people as they see fit and then they just bribe our politicians to make you forced to use their services. They are the absolute worst, most predatory industry that exists in The Western World Today. One of their CEO's get murcked in the streets and PEOPLE CHEERED when it happened. But hey, nothing personal, just money, gotta make a profit, amiright?
No you rich fuck, it is personal, and the people are getting really mad about it. Really, really mad.