Car Insurance

LabRat · 08-22-2007, 02:44 PM

A business is an entity that exists to make people that work there (or those who invested in it) money.

Insurance companies are businesses who take the risk that the little and big people that they insure will, in the long run, claim from them less than they have paid into the system. If there weren't people who paid in more than they took out, where would the money come from to pay YOUR claim?

A good company will use some of that profit to generate even more profits, through investments outside of the insurance industry to cover claims in the event of a massive claims spike, such as from say, a massive streak of thunderstorms that cover the midwest causing thousands of water, wind and hail damage to autos homes and businesses. Even a 'good' company will likely have to raise it's rates to cover such losses.

When a massive number of huge claims are made, a company will likely not have enough $$ to pay those claims.

How come I never hear anyone bitching about casinos? They just take your money, and you don't even get a card and free calendar at Christmas.

08-22-2007, 02:44 PM	#6
LabRat twatfaced two legged bumhole Join Date: Jun 2004 Posts: 3,143	A business is an entity that exists to make people that work there (or those who invested in it) money. Insurance companies are businesses who take the risk that the little and big people that they insure will, in the long run, claim from them less than they have paid into the system. If there weren't people who paid in more than they took out, where would the money come from to pay YOUR claim? A good company will use some of that profit to generate even more profits, through investments outside of the insurance industry to cover claims in the event of a massive claims spike, such as from say, a massive streak of thunderstorms that cover the midwest causing thousands of water, wind and hail damage to autos homes and businesses. Even a 'good' company will likely have to raise it's rates to cover such losses. When a massive number of huge claims are made, a company will likely not have enough $$ to pay those claims. How come I never hear anyone bitching about casinos? They just take your money, and you don't even get a card and free calendar at Christmas. __________________ Strength does not come from how much weight you can lift, or how many miles you can run. It comes from knowing that you set a goal, and rose to the challenge. Strength comes from within.

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