Jewish Lies? What's the point of Insurance?

>>1562636
Well, i cant say much for home insurance, but Car insurance really is only enforced for the other drivers, not for you. I highly doubt any american has saved enough to repair a badly damaged Porsche. I think it was some bullshit MSN article i read that most americans have less than 2k in emergency savings.

>>1562636
Yeah if u don't understand a simple concept it's the Jews then by default

It's because of unexpected costs you fucking faggot. Most people can't afford to pay $10000 upfront when something happens. So they spread the cost by many people absorbing it.

Since out of 100,000 people paying $100/month it's unlikely very many will get injured but they have a safety net

>>1562636

The obvious point of it is to cover expenses that you cannot pay for yourself.

In the US, if you have to go to the hospital and don't have good insurance, then you are going to have to pay tens to even hundreds of thousands for care.

Health insurance is the major one that people think of, but it works the same way for warranties for electronics.

You don't buy TV warranties because you can already self insure if it gets stolen or broken.

It's a business, which takes risk, employees, and pays taxes, ergo, it needs to profit in order to grow.

Profit alone is amoral. It is the business ethics that determine morality.

>Couldn't you just save up the money yourself?
For a private person it makes more sense to save and invest the money. For a company it's better to have insurance premiums as running costs.

People pay ransom/protection then when they need to be reimbursed their own money is spent against them on law firms hired by insurance company finding a way to avoid paying damages.

>>1562636

WHATS THE POINT OF FIREFIGHTERS? WHY DO YOU PAY TAXES SO THAT THESE FAGGOTS CAN ROLL AROUND IN THEIR RED MONSTERTRUCKS? EVERYONE CAN JUST LIKE INSTALL SPRINKLERS AND SHIT, RIGHT?

WHATS THE POINT OF POLICE? WHY DO YOU PAY TAXES SO THAT THESE REDNECKS CAN RUN AROUND SHOOTING THEIR GUNS AND SHIT? EVERYONE CAN JUST LIKE GET GUNS AND SHOOT PEOPLE IN THEIR HOUSE, RIGHT?

>>1562645
I'm sorry it's just that I don't really know much about the real world being a sheltered neet eating mom's tendies <3
But I needed real people to tell me because there is no useful, non-biased information out there in layman's terms. So I have to keep playing dumb until I understand.

No, of course people who spend like niggers will be unable to pay that, but why not use the money you pay the IC's and have that be your policy instead?

>>1562662
Youre a fucking retard

Most people don't have that much cash laying around.

And even if they COULD afford it, it makes no sense to have like $30,000 liquid waiting for an accident.

It makes more financial sense to invest the money and have insurance cover it

>>1562657
I don't see how those are good analogies. You need an entire nation and years of history and tech innovation to make something that seems simple like a firetruck, which one man can't make. It's basically the Walmart vs mom & pop shop argument. But IC's are literally just either giving you your own money, other people's money, or you give them your money for nothing to replace something that already exists.

>>1562666
>Most people don't have that much cash laying around.

Do you even read? That's not the point. People don't have that much cash lying around because they use it to buy insurance.


>it makes no sense to have like $30,000 liquid waiting for an accident

now you're just playing dumb. how do you suppose the company's protect what they have? the same way you can. so that's just a red herring.

>>1562678
>>Most people don't have that much cash laying around.
>Do you even read? That's not the point. People don't have that much cash lying around because they use it to buy insurance.

People can make $200/month.

But having $30,000 on hand to pay in case of accident(or more) is very difficult for the average person.

>>it makes no sense to have like $30,000 liquid waiting for an accident
>now you're just playing dumb. how do you suppose the company's protect what they have? the same way you can. so that's just a red herring.

What? The insurance company makes money because they insure millions of people but a low percent actually require a payout.

Financially it doesn't make sense for you.

Due to the time value of money it would be foolish to have several $10,000's liquid rather than invested. This is why insurance is beneficial.


If I have $50,000 in cash in case of accident I'm losing the current inflation rate on it per year, as well as opportunity cost.

Insurance is the better choice

Disregard the rest of the people OP. The real reason is because people are careless with their money. Indeed, you can just save up the money you were paying for your own expenses. If you are just a little bit frugal and do not constantly get in trouble, you may save enough for accident reasons. And if you don't use it up, your children may inherit it instead of the company you essentially gifted it to.

Well, that's of course unless you do some sort of dangerous work, like security, police special forces, etc, in which case you may indeed spend less that you will get from the company.

I'll just comment on car insurance. I pay about 36$/mo for Libery Mutual 25/50/25 coverage. Never been in an accident. I have a cousin who had her DL for 12 years and never had insurance. You just risk getting a ticket if you get stopped or paying for damage if you hit someone. Full coverage is %100 retarded in 99% of cases.

>>1562687
>>1562687
>>>Most people don't have that much cash laying around.
>>Do you even read? That's not the point. People don't have that much cash lying around because they use it to buy insurance.

>People can make $200/month.

lol would they even have anything to ensure?
you wouldn't pay for huge insurance having few or worthless "valuables"

>Due to the time value of money it would be foolish to have several $10,000's liquid rather than invested. This is why insurance is beneficial.
>If I have $50,000 in cash in case of accident I'm losing the current inflation rate on it per year, as well as opportunity cost.

you're basically implying that insurance is a vehicle, that you pay a fee for, to preserve the value of your wealth. This defeats the purpose of having insurance since you may as well pay a fee for better service designed to do just that.

>>1562763
and by preserving wealth i mean making sure the cash that your employer pays you doesn't get died

>>1562687

t. insurance shill

This is why people should have a rigorous education so they don't act like retards.

>>1562763
>>1562778
You just don't get it

>>1562645
>$10000
>$100
Are those numbers even remotely accurate?

>>1562796
>tfw shill
>tfw your countless years of lurking /biz/ have failed you yet again

This is a business and finance board but it's somehow filled with people who don't understand insurance.

>>1562816
It's filled with neets and dumbasses that's what it is

File: sum ting wong.png (99KB, 312x317px) Image search: [Google]

99KB, 312x317px

>>1562816
>>1562817

it isn't just the fact people overstate how likely something bad will happen that they make money, they only make money coz they do this while insurance companies spread the risk.

Insurance only works when everyone does it. I live in NJ. Every accident which involved people I know have involved an uninsured driver.

My parked car got hit by uninsured driver, I paid the deductible. (So I was out $500 because someone hit my car parked in front of my house).

Friend got hit by uninsured alien. She was insured but still owes millions in medical bills.

The fact underinsured insurance exists is just a slap in the face. For those of you not in cucked states, it Means you pay even more for your insurence in the event you are hit by someone who can only cover some meme amount like $1000 through their policy.

>>1562641
In fact you aren't required to insure your own car in the US. You are required to own LIABILITY insurance, which covers damage you inflict upon other vehicles and persons.

>>1563041

>still owes millions in medical bills

What the fuck, please explain this to a Britbongian.

>>1563048
In no-fault states it's slightly different.

You can chose to have insurance, or not have insurance. After an accident, everyone claims against their own. You have as much coverage as you paid for. No insurance? You are out of luck.

I think it's a simpler solution; no assigning blame, and everyone can decide on their own comfort level.

>>1562678
>be you
>buy house cash
>lol burns down in 1 year
>didn't save up enough in 1 year to replace house
>even if house didn't burn down, have to save money for ~30 years - doubtful premiums will equate to a house even over that time peroid

Why is this so hard? Plus alot of insurance is required because people finance assets.

>>1563067
>car parked on street
>drunk driver smashes your vehicle
>your insurance premiums go up to cover the damage

Simpler yes, but retarded.

it's a meme. if you're young and healthy, you're better off allocating all your money that would be going toward a good insurance plan, and setting up a fund that will cover any costs should anything go wrong.

before i wised up, i was spending 3.6k on health insurance annually. now i just set aside that amount and let it collect interest.

>>1563058
She was riding a motorcycle so when the guy hit her with his truck, she took a spill and broke a bunch of bones. US medical system charges exhoribinant amounts(not unheard of for a Tylenol or simple pain relief pill to cost hundreds when administered at a hospital).

Not sure why the insurance isn't covering everything minus her deductible but do know they will do their best to Weasle their way out. So that results in the injured party having to get a lawyer to take the insurance company to court. That costs time and upfront money which many don't have

>>1562636
to eliminate risk dumbfuck

>>1562636
In theory, Insurance is the transference of risk from one party to another party who is better suited to handle the risk, thus minimizing risk in the economy as a whole and creating value. For example, consider a farmer and a commodities merchant. The farmer will sell his future crop to the merchant at an agreed upon current price, insuring himself against future unpredictability in grain price fluctuations due to a bumper crop, for instance. The merchant is better suited to handle the risk of fluctuating prices because he likely has many contracts with clients in many commodity markets, and is unlikely to lose all of his bets if he understands data well. The farmer focuses on growing stuff, the merchant on data trends.

In practice, insurance is a sham because the government got involved and requires you to have it in many cases, lowering the competitive value in the marketplace. So insurance companies now won't pay out claims unless you take them to court, and they have no incentive to provide better service because you're required by law to have it. A "better" firm that DOES pay out will not enter the marketplace because they cannot operate at the same profitability as firms that do not pay out, and investor capital will always flow to firms where profitability is the highest.

Read t sowell

>>1563078
>be you
>not understand statistics
>gladly bow to your jewish overlords as you pay them in blowjobs

I'm no actuary, but I do know the last part in any insurance company's algorithm for predicting profit
E(X) = probability of accident(mu) * (number of accidents(X) * mean payout) < $0

So they give you far less than you put in.
If you put every dollar you would'v given to insurance companies into a personal fund
then E(X) = $0 plus you don't have to pay late fees
since every other variable would be the same, you can expect to pay around $6 less a year
based on 2009 data (which has only gone up but im too lazy to see by how much)
http://www.businessinsider.com/statistics-about-the-health-care-industry-2011-2#americas-five-biggest-for-profit-health-insurance-companies-ended-2009-with-a-combined-profit-of-122-billion-11

you basically pay $6 a year for headaches, lawsuits, and the incentive to be more careless and less responsible with your money

>>1563134
bingo
finally a decent explanation
as an individual this almost makes sense, as a society it sounds fucking retarded
fuck game theory or some related field