The Insurance Geldscheisser by Eric Peters

The Insurance Geldscheisser

by Eric Peters
EricPetersAutos.com

Recently by Eric Peters: Garage Security

Insurance is a con. Worse than Social Security, even – because you pay in and (normally) never get anything back.

Consider: You pay say $800 a year to insure your car. Over a ten year period that comes to $8,000. Gone. Out the window. You’ll never see it again.



Think about this. Most people don’t have major accidents. Insurance companies know this – and bank on it. For every dollar they pay out (grudgingly and after much-ado, usually) they take in probably ten more. Insurance companies are hugely profitable enterprises. I won’t call them businesses, because businesses – properly described – provide a useful product or service. They also don’t force you to to be a “customer,” as insurance companies do, having successfully egged on their bought-and-paid for agents in state government (that is, politicians) to pass laws making insurance “coverage” mandatory.

It is no coincidence that the bankrupting of America has tracked parallel with the rise of FIRE (Finance, Insurance, Real Estate). When you add up car, life, health and home insurance, many people are spending $10,000 a year or more for …. nothing! They’ve been gulled into believing they’re “covered” but they’ll be disabused of that notion if they ever have to file a claim. 

Yes, the insurer might pay… something… eventually. But if it does, it will also double – or cancel – your premiums for future “coverage.” Ask anyone who has filed a major claim. Even after decades of just paying in. As soon as the math starts working out in favor of the insured – even a little bit – the terms of the relationship are swiftly altered to correct the imbalance.

Now let’s talk about car insurance specifically. It was made mandatory on the argument that it’s just not right to permit people to operate potentially lethal and always dangerous motor vehicles on public motorways without the driver having the means to compensate potential victims for any damages or injuries he might cause.
But that was just window dressing. The real motive was to create a coerced and captive “customer” base that had no choice but to pay up. Government-enforced cartels are secure from market pressure; they don’t have to worry about pleasing people – because the people have no choice. Oh, they can shop Tweedledee, perhaps. But he’s not much of an improvement over Tweedledum.

Well, how about a real alternative?

Why not return some market discipline to the insurance racket by making it mandatory only for those drivers who cannot demonstrate the financial means to cover damages equivalent to current mandatory state minimums for basic liability-only coverage?...........................

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http://www.lewrockwell.com/peters-e/peters-e40.1.html 
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