Want to Pay Less For Insurance?

11 Oct
 

by  • October 8, 2013 

Increasingly worthless Federal Funny Money – and increasingly hard-to-find decent-paying jobs – have put an economic choke-hold on millions of Americans, compelling them to cut back on everything that’s not absolutely essential.insurance racket picture

Too bad they can’t cut back on insurance – which for most of them is as far from essential as Federal Reserve notes are from sound money.

Insurance is a terrible deal for most people. A financial sink-hole that grows wider and consumes more with each passing day (and each newly “adjusted” premium).

No doubt this is why it has been made mandatory.

First car – now health.

Most people have, of course, been duped into believing otherwise – that insurance is essential – via the inculcation of fear. A whole industry (a mafia, actually) is predicated on it. Scare the crap out of people; convince them that catastrophe is right around the corner and inescapable.

The fallacy ought to be obvious.

If it’s true that catastrophe lurks – and is inescapable – insurance companies would go broke instead of rendering us broke.

Unfortunately, this simple deduction is not obvious to most people. Even though it’s right in front of their noses each time they pay a premium – for years on end.Obamacare lead

Insurance is one of the greatest scams going – to a great extent, because it’s a scam you can’t say no to. Vegas is crooked, but you don’t have to go there. A back-alley card game is fixed, too – but no one makes you participate.

With car insurance – and now, Obamacare – you must participate.

Or else.

This is essential. Take away the marks and the “house” makes no money. Imagine a card game in which the only people playing could not ante up yet were entitled to say call. Now think about car and health insurance – with the only people voluntarily signing up being those who fully expect to cash in.

Grab a piece of paper. How many years have you been paying for car insurance? In that time, how many claims have you filed? I will go out on a limb and guess you paid a lot more for insurance than the insurance paid out to you. Many – probably most people – will discover they paid so much in over the years that had they been involved in an accident, they could probably have paid for the repairs out of pocket.

If they still had the money, of course.Flo picture

And what if you never have an accident? People have been conditioned – by the insurance mafia – to regard this as a near-impossibility yet it’s just the opposite. Most people never have more than a fender-bender accident – and it is not all uncommon for good drivers to go their entire driving lives without ever being involved in a significant wreck.

It has to be this way – or else the numbers would work against the insurance mafia, rather than against you.

Most “accidents” are not random events that just happen. They happen – for the most part – as a direct result of factors under one’s control. Control those factors, and the risk of being the cause of a serious accident falls to very small. In which case, car insurance is a bad bet. Just as health insurance is a bad bet for a healthy 25-year-old. (Or for that matter, a healthy 45 year old.)

Certainly, accidents happen. But most “accidents” aren’t.  Just as it’s no “accident” that obese/sedentary people who live on fast food tend to die sooner – and to develop diseases such as hypertension and diabetes that are largely avoidable if one maintains a reasonable body weight, eats moderately and exercises regularly.

Smart people know this, of course – and would skip car insurance when they still could – and said no thanks to health insurance when that was still possible.premium picture

Better to just put some money aside – and drive attentively and competently (with the strong inducement to do so being the knowledge that you’ll pay for it – directly – if you’re not attentive). Probably, nothing will happen. If it does, you’ll have the money to pay for it. If not, you’ll have the money to pay for other things.

For the same reasons, why would anyone other than a Forrest Gumpian innumerate pay $300 a month for health insurance and then a $30 co-pay on top of that when a routine physical might cost $300 once? Using health insurance to pay for ordinary check-ups, stubbed toes, the sniffles – and so on – is as ridiculous as using car insurance to pay for oil changes and tune-ups. At least they haven’t gotten around to forcing us to do that yet.

But probably, it’s on deck.

After all, why not? People expect Obamacare to “cover” everything – so why shouldn’t their car policy, too? Never mind the obvious – that when things are made “free” by government fiat, they tend to become both scarce and expensive.

In criminal cases, the basis of any investigation is cui bono – who benefits?

Who benefits from making insurance something you can’t elect to skip? If insurance is so wonderful, so essential, does it not follow that most people would eagerly sign up without being forced to? And if most people must be forced to sign up, does that fact not tell us something about the value of insurance?

How come it is not necessary to mandate that people buy ice cream? Or clothes? Or toothpaste?innsurance mafia pic

People – stupid people – claim that mandatory insurance (both car and health) lowers cost by dint of spreading the cost around. Has it not occurred to them that any business that can force you to buy its product or service has virtually no pressure bearing down upon it to reduce the prices it charges? That such cartels become insolent and tyrannical precisely because they can – precisely because you have no choice? Have you ever heard of a business that charges less when it can get away with charging more?

Ever?

The same chowderheads who yammer about the machinations of Big Oil never seem to be troubled by the machinations of health cartels. At least, you can still say no to Exxon-Mobil. Thanks to Obama – and his Rethuglican accomplices – you can’t say no to Humana, Aetna and Kaiser Permanente.

Why are insurance companies among the most profitable “businesses” around? Why is it that one of the very few “bright spots” in the economy is the “health services” industry? How come car insurance costs more today than it did before it was made mandatory?

Could it be because they’ve made us all an offer we can’t refuse?

Consider at-gunpoint car insurance. If you were presented with a bill for say $800 and found the cost exorbitant and could decline to pay, there would be an incentive for the insurance company to lower its quote. Better to get $600 out of you rather than nothing out of you.

Now extrapolate that across the millions of people in this country. Do you suppose costs would tend to increase – or decrease?

The answer is obvious – as is the reason for the insurance mafia’s insistence upon a mandate.

Even if a person is only forced to cough up $400 a year – a “cheap” premium these days – he will pay, over the course of the next 25 years – $10,000 (not adjusted for inflation, and assuming the premium remains the same – which of course, it will not).

Now let’s assume he owns two vehicles. Double your fun – $20,000 out the window over 25 years.insurance mafia 2 For most people, that’s a lot of money.  Imagine how much better off you’d be if you had that $20,000 in the bank – instead of out the window. Now add a couple thousand a year for Obamacare on top of that. Plus house insurance. Plus life insurance. It adds up to serious money. Over a lifetime, the average person is probably spending six figures on insurance.

Is it any wonder why everyone’s broke – or getting there?

cui bono?

People like Obama (and most Republicans, too) have the cheek to use terms like “market” in the same sentence as “mandatory.”

“Customer,” too.

Do you feel like a “customer” when you are waiting on line at the DMV? Ever try to shop the competition? Or just say, “no thanks – I’m not interested.”

Oh. That’s right. You can’t. You are a “customer” in the same way that a rape victim is a “date.”

In corporate-cartel America, market terminology is abused much in the same way that the Soviets mauled words like “democracy” – and the Nazis, “freedom.”money down the drain pic

They’re inverted to convey the opposite of their actual meanings.

Anyway, it’s no mystery why most people are sinking fast, financially. When you add up the annual cost of insurance extortion – just car and health, for openers – it is probably the second or third biggest fixed expense most people have to deal with, after shelter and food. But unlike shelter and food, insurance – as such – provides no tangible benefit. It is a bet – a bad bet – imposed on you at gunpoint.

Again, think Vegas. That’s the model.

Insurance is based on the house winning almost every time. Which means you – and I – lose almost every time.

I don’t know how you feel about it, but I prefer it when the odds are in my favor. Especially when my money is involved.

Thank god (more likely, inertia) that they haven’t yet got around to forcing us to buy home and life insurance.

We recently said “no, thanks” to the company that issued our house insurance policy – chiefly because the bastards jacked up the renewal by almost $200 a year for no legitimate reason – that is, no reason having anything to do with us. We’d never filed a claim, done nothing to suggest higher risk. The agent told us as much – and said that the premium was going up simply because premiums were going up for everyone. Most people have no choice but to pay up – because their home loan requires them to have insurance. (This, by the way, is reasonable. Until you’ve paid off your home, the risk of a loss is not entirely yours.)

Because we own our place, we were able to say no. It felt really good to toss their letter in the trash – and to think about the $1,200 and change we won’t be throwing out the window this year.

Too bad we can’t do the same with car insurance – and now, health insurance.

We’ll all be “covered,” I guess.

But I’d rather not be broke.

Or constantly have other people putting guns to my head.

How about you?

Throw it in the Woods?

PS:This site is almost entirely reader supported now. No Google. (They blacklisted us – so we dumped them. See here for the full story about that.)

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