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I feel car insurance companies are legally stealing our hard earned money from our pockets. Am I the only one?

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I feel car insurance companies are legally stealing our hard earned money from our pockets. Am I the only one?

Postby anshel51 » Wed Jun 26, 2013 11:23 am

I know there are accidents, but insurance companies are collecting way more money than what they pay for accidents. And they will raise the premium after the payment; to ensure the difference is paid back quickly.
I commute through I 95 every day, I see thousands of vehicles. I ask myself, where all the money we are paying goes? What can we do in America to stop that abuse? I feel the Geico’s lizard is mocking us.
In Puerto Rico, drivers have to pay $100 compulsory per year to motor vehicle. That money stays in the government; and is used for municipal constructions. Should we copy that?
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I feel car insurance companies are legally stealing our hard earned money from our pockets. Am I the only one?

Postby beldene » Wed Jun 26, 2013 11:33 am

I know there are accidents, but insurance companies are collecting way more money than what they pay for accidents. And they will raise the premium after the payment; to ensure the difference is paid back quickly.
I commute through I 95 every day, I see thousands of vehicles. I ask myself, where all the money we are paying goes? What can we do in America to stop that abuse? I feel the Geico’s lizard is mocking us.
In Puerto Rico, drivers have to pay $100 compulsory per year to motor vehicle. That money stays in the government; and is used for municipal constructions. Should we copy that?
So many answers, so far off base.

Insurance companies exist for a profit... Even though many are technically "non-profits".

We are legally compelled to purchase insurance, thus forced to pay into these obcene profit generators.

Yes, insurance companies have losses. Some of them are actually insured against those losses. They also have the ability to forgo payout in the case of "Acts of God" like when a hurricane destroys thousands of cars, they get to say "Oh, we can't afford that!" and not only fail to provide the protection you thought they offered, but now occasionally get government handouts to generate even more profit.

Now that we have to do the same with healthcare, or face massive financial penalty, we will really be screwed.

Insurance is a scam. It's not much different from a lottery. They will never pay out more than they have taken in. They will always have a "big winner" to offer testimony as to how great the game is.
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I feel car insurance companies are legally stealing our hard earned money from our pockets. Am I the only one?

Postby verddun » Wed Jun 26, 2013 11:38 am

States regulate insurance rates, and companies are required they can show they have reasonable assets, but not sitting on a huge piles of excess money. But how many vehicles were ruined by Tropical Storm Sandy? Tens of thousands, and all those owners would be filing insurance claims.

Let's say you pay $1000 a year. A fender bender will be multiple thousands of dollars.

And I will cue you in on a secret. Ever wonder why some of the highest portions of your premiums are for uninsured motorist and under insured motorists? Many of those cars you see are not insured.
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I feel car insurance companies are legally stealing our hard earned money from our pockets. Am I the only one?

Postby madntyre36 » Wed Jun 26, 2013 11:49 am

They have convinced the government to force drivers to buy their product. As such, they're pretty much free to earn as much money as they want.

Unless something's done to repeal obamacare, this same scenario will play out with health insurance, except it will apply to everyone not just those who drive.
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I feel car insurance companies are legally stealing our hard earned money from our pockets. Am I the only one?

Postby erich » Wed Jun 26, 2013 11:56 am

It is in capitalisms nature to eliminate the middleman. Insurance companies are middleman.
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I feel car insurance companies are legally stealing our hard earned money from our pockets. Am I the only one?

Postby stewert36 » Wed Jun 26, 2013 12:04 pm

Ever heard of profit? It's a very American thing. Insurance companies aren't in the business out of the kindness of their hearts, or as a civic duty. There are in it for profit. You can't make a profit unless you take in more than you put out.
Of course they charge more than the cost of accidents.
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I feel car insurance companies are legally stealing our hard earned money from our pockets. Am I the only one?

Postby emmery42 » Wed Jun 26, 2013 12:11 pm

Some provinces in Canada have government car insurance, which is obviously cheaper and more effective than private companies.

Here is the US, people prefer private companies because they don't like government intrusion. Look at how outraged people were when Obama tried to make even a small change to the health insurance system. Do you think people would tolerate such changes for car insurance?
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