I've maintained that most insurance is scam, but here's at least some good ranking.
Parents had Allstate, and they didn't cover a freak fire in their truck cab. They had just purchased it for cash at $17k, and that while thing went up in smoke.
I opt for the absolute minimum that is legal*, and then just have a good stash saved up instead.
https://youtube.com/shorts/-0YI3pPekwc
*Do you think being legally required to have insurance is a factor continuum to the problem? Just a thought...
Yes, mandatory insurance also artificially inflates the prices of cars and homes. If you didn’t have insurance, how much risk are you willing to take on? Probably much less, lowering overall demand.
I worked for the corporate side of a giant US insurance company, and the level of waste and inefficiency is absolutely mind boggling. They love to make themselves the hero’s but will do absolutely everything they can to wiggle out of paying claims. Disgusting.
Agreed. This is why giant, national insurance is a bad idea to begin. The idea is nice: everyone pays a little so that unfortunate individuals don't lose everything. The problem is that the company that manages it has an intrinsic conflict of interest in not paying the unfortunate. It is unavoidable. Game theory will show that the optimal policy is to pay out as little as is legally required to customers.
The solution is to gamify the system to optimize mitigating and distributing risk from individuals to their neighbors who desire their good. This is not to make professional insurance customers (sue-happy vultures, etc.) or large companies that love to line their pockets and make excuses. This is to keep people from losing their shirts when they get into a fender-bender and need some chiropractic care, or help replace a vehicle after a freak fire in their truck cab.
This is already done for health in cost-sharing plans. (We use Samaritan, and I know there's a Bitcoin-backed/-integrated one out there, too.)
