If you’ve read this blog for very long, you know that I periodically go off about insurance and specifically insurance companies. Seems like there isn’t a week goes by that we don’t have some issue with some kind of insurance. I have been of the opinion since about the time I turned 16 and eligible to drive, that insurance is basically a scam or rip-off. I understand that insurance (rates) are supposedly based somewhat on statistics, but it has never made sense that I had to pay the highest rates for car insurance solely because I was under 26 years old, a male and not married. When I was 26 years and 1 day old, according to my insurance company I was such a much better driver that my rates were reduced by 40%. Just like that — in one 24 hour period, I was no longer a high risk to the insurance company.
A lot of people seem to think because you pay your monthly insurance premium, you don’t have to worry about accidents, unforeseen circumstances or just plain bad luck — after all, that’s what your insurance is for, to protect you from all that stuff. The truth is insurance companies will do whatever they can to squirm out of their responsibilities and use all sorts of stonewalling tactics to take your money without giving you any of theirs.
Insurance is an instrument used by individuals and organizations to protect themselves against a risk. The idea is that you pay a (relatively) small amount of money over time to protect yourself from a possible catastrophic financial loss. The insurance companies do extensive research to determine the likely amount and frequency of payouts, then add their (fair/unfair) profit margin, and come up with the premium to the policyholder. Of course you have to take into account they also add pay for agents and account for insurance fraud. You will almost always pay more into insurance than than you will get back. I have heard that occasionally someone does experience a catastrophic loss that the insurance actually covers. I believe that is a rare case, indeed.
My grandfather paid health insurance premiums for well over 50 years and never filed a claim. After 50 plus years of premiums, he got sick — twice. The second time he got sick, the insurance company walked away, leaving him with no insurance. If you say, “I’m unlucky,” or “I’m a careless person,” so I will buy good insurance, I can assure you the insurance company will figure this out and cut you off before long.
So I’ve accomplished nothing except venting a bit. Insurance companies aren’t going away, and they’re not going to become any more accommodating. They’re still at top of my dislike list, way above used car salesmen and aluminum siding salesmen. As they say, there are worse things in life than death. Have you ever spent an evening with an insurance salesman?
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