The concept of insurance is stupid

The concept of insurance is stupid.

What replacement system do you propose then?

Paying for goods and services directly.

Got a ticket and your car taken away didn't you?

How so?

/u/waterguy12

Nope. I was just wondering who was the evil genius who decided everything needs to be "covered" by paying a middle man every month when we could just pay for what we want and need instead.

And when you can't afford the 3 million dollars to repair the substation you just crashed your car into, how are you going to pay for that?

Or how about the $750k for that chemo?

Hmm...

>pay millions of dollars for insurance
>get jerked around on a tiny thousand dollar claim

Yeah. Insurance is a Jew meme.

I don't know a lot about this stuff so enlighten me
Do insurance companies pay less for these kind of services?
Where does the money come from?

You don't have enough money to pay for all the shit you could potentially fuck up in your lifetime. Sure if you live in the woods and don't own anything, maybe don't need it. But if you got a 9-5, a family, and like to go places, chances are you're going to fuck someone else's stuff up and without insurance you're going to jail and losing everything you own.

Its necessary to have it in this age, yes.
This is because shit is expensive.
But the money comes from somewhere, right?
Unless insurance somehow pays less than someone who would just pay up front, then that money is coming from everyone else who pays for that insurance, and when something happens theres no guarantee they'll pay for it.

Just keep your dumb shit to yourself until summer is over and you're back in high school.

Insurance is an essential part of our society, even if you don't like it.
The concept of Insurance is: Everyone pays for the service. Only a very small percentage of the people paying for the service will use it. Thats how paying nearly nothing a year can pay out millions for a claim. And there are so many differnt kinds of insurance. You can ensure pretty much anything you want.

Insurance companies pay the damages from all the money they collect from their clients because not all of their clients will have an accident that will require a payout. Using statistics tells them which groups of people are riskier to insure and premiums are adjusted according to a group's risk and individual histories. Get into an accident? You now pay more for your insurance because you've shown you're a risk.

I'll just stick to questioning things that need to be talked about and you'll just continue trying to discern which kind of faggot I am out of all of us. This IS Sup Forums, remember.

This really NEEDS to be talked about? Or do you just not understand the importance of insurance in modern life?

Insurance wont pay for that $3million station anyway. Most limits stop at $100k

An insurance company won't and can't ensure for more than they have liquidity of. Say 100000 people pay an average of 1000 dollars a year.
That's 100 Million in income a year. Add that to all the Liquidity and Capital they have and that's how much "stuff" / money they can ensure. It's a Very Risky business model that has very high returns. Now let's say they have 100 claims a year. That means each claim has the average of 1 million plus 1/100th of their assets. So it's all about money management.

But I do have enough money to cover the state minimum for public liability. So why should I be paying for this coverage ontop of having my own savings

You can get a General Liability Floater and insure literally anything. Can get a hundred million dollar pocliy. But your premium and deductible will be huge.

This is what I imagined it was like, thank you for explaining it.
Though this doesn't make it acceptable for them to constantly jew you over small claims when these companies rake in millions.
I don't even wanna know what their paychecks are up on the ladder.

They may or may not pay less for them. I imagine if an insurance company had a preferred company they used for a certain service that they might get it at a slightly cheaper rate.

Basically, you have a big pool of insured people. Lets make an example where you have 100 people who all pay $1000 each a year for car insurance. So thats 100k every year coming in for the company.

Now lets say theres a 1% chance an insured person has an accident. So one of them has a $20k accident and writes off their and the other person's car.

So the insurance company pays them out, and loses 20k. But all in all they've kept 80k from the 100.

Why pay for insurance then?

Peace of mind. You know that if you lay for insurance at 1k a year for 5 years, you will never get stuck with a 20k bill you cant afford if you happen to be involved in an accident.

Non amerifat here.

Is Obamacare compulsory or something?

True but only $30,000 is required by law in my state. The vast 99% majority of people (who carry insurance) have reasonable insurance coverage

It's called bankruptcy, user. Maybe look it up?

Ive put alot of thought into auto insurance and the best solution I can come up with is the bond idea I mentioned in the last thread

Communism

OP here.
I have a much better understanding of insurance now, though I still have my gripes.
Can't really think of a replacement for such a system that isn't communism, and i'm gonna stay away from that can of worms.

You are hedging against risk.
Yes, insurance is wildly profitable and includes extreme price gouging (I worked as a consultant for government & major corporations and could put 1000% markups on underwriter cost). Yes it involves fucking with clients on the most flimsy of excuses to avoid major payouts, and the creation of a cycle of bureaucracy to ensure clients view making a low value claims not worth pursuing.

Fun ways to make people give up, because they don't care enough to go through with shit. They claim an item was stolen? Ask them for a police report. Most people cbf. Or the cops just don't care.

Other stuff?
*Make them find their old receipts (assuming they have them) to prove they actually owned the items in the first place. We simply insure what the client says they have.
* Check through their list and deny anything that is missing or not adequately described.
*A claim statement that justifies the value of each item being claimed and details any damage. This has to be counter-signed as 'legitimate' with some kind of judge, lawyer, justice of the peace, with every document notarised. Original documents only as well, can't risk forgery.
*Take photos of every item. Require more photos later in the process.
*Insurance includes clauses that insurer can salvage claimed items. When you make final offer, also note that the payment will be made after the item has been picked up by your staff as salvage.

Most people give up somewhere along the line.

Loved seeing scammers thinking they'd get a payout for a shitty old scratched/chipped/worn table, chairs, couch and still keep the barely damaged items. They always folded upon realising they'd get $350 for a 4 year old leather lounge, but we'll get a slightly worn lounge for our breakroom or for staff to take home, and they will have to go spend $3000 to replace it with a new one.

If you can't bear the loss of the item (or damages for fucking something up) then insure against that loss. Simple.

Keep your receipts and out-jew them, is what you're saying?