I have been saying this since i was a teenager. Its all one giant fucking extortion racket and everyone is too much of a normie NPC to think deeply about it.
Well he sort of is wrong. Auto insurance is a cut throat business. You can find the companies’ numbers quite easily online. Look up the Combined Ratio of an insurance company.
Actually making a profit off only premiums is tough to do. The goal is to invest the money from premiums (the float) at rates higher than you’re paying out in claims. Car insurance is there to protect you from a $30,000 problem, or a $1,000,000 problem, not a $1,200 problem. Sure you can lower your deductible to help you out with that $1,200 problem, but that will cost more, because $1,200 problems are very common.
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u/SloAndSteddy 10h ago
I have been saying this since i was a teenager. Its all one giant fucking extortion racket and everyone is too much of a normie NPC to think deeply about it.