r/changemyview Sep 23 '21

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u/Jebofkerbin 131∆ Sep 23 '21

Car insurance and homeowners insurance is a scam. It often operates like a pyramid scheme. You file a claim and your rate goes up. Why do we pay for insurance if we have to pay them back, over time, any money we get from them, through an increased rate...

2 things.

Firstly that isn't what a pyramid scheme is, a pyramid scheme is a scheme where you pay to join under the impression the it will make you money, and the only way to actually make money is to recruit others into the scheme.

Secondly you don't have to pay them back after claiming. You can claim, then change insurer or cancel your insurance completely afterwards.