How do car insurance companies get away with ripping peoole off?

[Anonymous]

Last company, $440 a month, Geico, $88 a month.

[Orion84]

Same as with health insurance, homeowners insurance, etc; it's because they can.

You're required to have certain kinds of insurance, by law. Not so much health insurance, but other kinds, and because if you actually DO find yourself in a situation where you need insurance, but don't have it, it can literally destroy your life, financially.

Imagine you don't have auto insurance, and you are at fault in an accident where the other person, or persons, are injured. Suddenly, you're on the hook for tens, or hundreds, of thousands of dollars. You're royally fucked. You will never recover from that.

Insurance companies know this, so they figure you'll be willing to pay their monthly premiums, because quite honestly, what else are you going to do? They know they've got you, 'cause they know you're screwed without them.

You can always change insurance companies, but eventually, they all end up raising their prices to be "competitive" with the current market. So, you may get a little reprieve, but you'll eventually end up getting fucked again.

That's life in the modern world. 🤷‍♂️

[WindAtMyBack]

Was it the same coverage?

There can be a big difference between companies, but I don't think I've seen THAT much difference for the same coverage.

I always shop around. But insurance companies are reluctant to give quotes over the phone there days.

As for ripping people off, I think the very nature of insurance is a ripoff. Insurance preys on your fears. The odds are against you, but people pay for piece of mind just in case something catastrophic happens.

I dropped my home owners insurance. But auto insurance is required by law to drive, so I have to get it.

[Asker]

Yes, and it started at $260 but they kept increasing it

[WindAtMyBack]

That's why you should check around every now and then.

For me it's the opposite though. Mine went down over the years.

[WindAtMyBack]

By the way, I'm currently paying $147 for six months. So less than $25 per month.

[Asker]

Mine was supposed to but whenever I asked about it they said they'd get back to me in a few days

[Anonymous]

People don’t check prices or Geico rejects them. I would definitely take Geico in that example if they accept you.

[Asker]

They did, saved me a ton lol

[Opinion Owner]

Good!

[AI Opinion]

The difference in insurance rates can be attributed to various factors, including the company's pricing model, risk assessment criteria, and available discounts. Each insurer evaluates factors like your driving record, location, vehicle type, coverage level, and more. One company may assess these factors more favorably for you than another. Shopping around and comparing quotes is advisable to find the best rate. Keep in mind that lower costs might also reflect differences in coverage or customer service, so it’s crucial to understand what you are paying for.

[DryGermanGuy]

Somebody sabotaged/weakened the much-needed oversight institutions?

[Anonymous]

It's easy for them in capitalism.

[Ariesman81]

Because you let them?

[Asker]

I mean legally, genius

[Ariesman81]

They're allowed to charge what anyone is willing to pay. It's up to you to do your due diligence, genius

[Asker]

You're not very bright, you can't sell your house beyond a certain number, legally, why is insurance different and why do you defend scammers?

[Ariesman81]

Why did you pay them $440/month when you could only be paying $88?

I can sell my house for whatever someone is willing to pay for it. There are no laws that say I can't.

[Asker]

No you can't, Trump got in trouble for it

[Ariesman81]

Trump had the DoJ weaponized against him. The banks also closed the Trump family's accounts.

[Asker]

No...

[In_Trance]

Because your government says you have to buy it

[Asker]

Trash government