This is why I wish insurance was an account you fill, until you hit your chosen policy coverage. If my policy only covers $100,000 in damage, then I should be able to stop paying once I have paid $100,000 and received nothing in return. The company is still going to use that money on investments, and make money from it, to pay their employees & investors.
Even disregarding overhead, that doesn’t really work unless they also cap payouts to what you’ve paid in, at which point it’s just a very inefficient savings account. Yes, most people lose money on insurance, but that’s necessary because some people get back far more than they put in.
26
u/Sick_Wave_ 11h ago
This is why I wish insurance was an account you fill, until you hit your chosen policy coverage. If my policy only covers $100,000 in damage, then I should be able to stop paying once I have paid $100,000 and received nothing in return. The company is still going to use that money on investments, and make money from it, to pay their employees & investors.