Absolutely true that your premium covers uninsured and underinsured claims. This is how insurance works. They collect, by design, more in premiums than they expect to pay out. They monitor claims by area, demographic, car type, you name it. The companies that promise you a check fast do that because they want to settle fast for less than they would if you took your time to fully understand and document your loss. They know their exposure in a given segment in excruciating detail and they price to protect themselves.We had our rates go up last year, When I called to inquire why, the young lady sounded like she was reading from a script when she explained that it was because they had a higher number of claims in my area in the last year. I kept asking her what did that have to do with me? She did not have a good answer. So we switched.
In the Detroit area, I would guess about a quarter of all cars on the road do not have any insurance at all. My guess is the insurance companies are making you cover the costs these drivers are causing the industry. What a scam.
My intent is not flame or let this get out of hand for moderators, but this has crossed my mind as a small business and home owner. It is too bad law allows some but not all to self-insure.Ahem…go watch “The big short” and tell me we’re a democracy.
Capitalism says you sink or swim…unless you’re “To big to fail”.
Credit is a scam. ROIs on savings accounts are an insult. CDs? Pitiful.
Everybody wants my money to make them money but it’s a one way street.
My credit union is basically a convenience and nothing else.
Insurance is just your money into their accounts.
American greed…we eat our own.
That will depend on the neighborhood association and local ordinances. In my current municipality local ordinance, building/zoning and clear/treasurer at city hall have a legally binding management say that has stopped inane stuff and childish behavior the few times it popped up where we live not.Aren’t they bad enough as is?
Insurance companies owned by policy holders are called Mutuals. For the average policy holder they are still just insurance companies.My intent is not flame or let this get out of hand for moderators, but this has crossed my mind as a small business and home owner. It is too bad law allows some but not all to self-insure.
The way we have associations and coops that are legal has me feel some insurance coverage could be done that way. I think of how a neighborhood association could have escrow or a fund that could cover stuff like a fire claim but not likely cover a disaster hitting a neighborhood. Something like we moved our health coverage where basics and front line are handled by the physician and member owned coop, but we go to a different network for specialist coverage.
It has been frustrating to watch my 20 years claim-free basic liability policy for my business. Reasons for it almost always going up are very often matters that could be managed better.
I'm the wrong person for where a lot of frustrations and problems go unless we create a new category of extreme called extreme pragmatists or moderates!
Having worked in casualty claims for a long time this may be the dream but it's not the reality. However BS personal injury claims which is most of them, do drive up your premiums. Increasingly severe weather is too. The people actually handling claims don't want to delay, they want them off their inventory."With PI cases, it only takes a few large verdicts or settlements to retire.
It's a nice idea but I think you'd find it unworkable.Thus, they could be a mechanism for some level of being self-insured.
Unworkable by the lobbied and legislated power of the insurance industry. The same firms or similar that administer or help businesses self-insure could do it for other entities with about same levels of money involved. When I was in a firm that did some self-insuring is when I learned it was that and a few others' lobby power that made it possible.It's a nice idea but I think you'd find it unworkable.
They're mostly insurance companies. Some are third party administrators. It's not inexpensive. Self insured clients are the worst to deal with. If you think insurers are bad, self insureds are much worse. Do you think the mortgage companies also on your home owners policy are going to be interested in this idea?The same firms or similar that administer or help businesses self-insure could do it for other entities with about same levels of money involved.
My intention is not to pick a fight but I have experience from different angles or sides. Business owner, currently a c suite director, a few years of projects and assignments in insurance firms, and close associations with family and friends in other nations to compare the differences.They're mostly insurance companies. Some are third party administrators. It's not inexpensive. Self insured clients are the worst to deal with. If you think insurers are bad, self insureds are much worse. Do you think the mortgage companies also on your home owners policy are going to be interested in this idea?
No one with reasonable intelligence would stir that into action - that the dormant association do anything!I’m not fighting I’m giving you things to consider. Bring it up at your next homeowners association meeting.