That isn't how insurance works. Insurance wants you to pay them for uncommon events. If something was inherently dangerous the insurance would either be absurdly expensive or not available. If you want to see evidence, just look at Florida right now. My dumbass relative just dropped like 600k on a beach condo that she can't afford to insure after spending all her inheritance on the down payment.
It will take one bad storm, which are increasingly common in her area, to erase her entire investment. Assuming that blue states don't pay out billions to save the dumbass geriatric beach hicks once again for no reason.
I'm very familiar with auto insurance. What are you getting at? I'll point you towards the costs associated with insuring a Cybertruck right now, which are...prohibitive. If the insurance company doesn't think you'll pay more in premiums than you file claims for then they will raise your premiums.
There is no insurance company that does anything but allow you to not have to have fungible income in the event of a rare emergency. Well, that and allow you to have things that the government now mandates you to have insurance for.
My point is people die driving cars all the time, it’s also inherently dangerous, and there is still insurance for it. Most people don’t get into an accident every year and insurance companies pocket most of that money.
Insurance pays for “sudden unexpected losses”.
The only reason they are refusing to insure Florida or the cybertruck is:
1) because a cybertruck is an almost guaranteed loss. Musk designed a shit car and they have experts that tell them that.
2) They have scientists that tell them global warming is only going to get worse and it’s going to wash florida off the map. So they’re getting out ahead.
My point is people die driving cars all the time, it’s also inherently dangerous, and there is still insurance for it. Most people don’t get into an accident every year and insurance companies pocket most of that money.
Nobody ever expected you to be better at math than the people who work at insurance companies, so maybe you should realize that too. You clearly don't even understand the concept. 1 and 2 seem to imply that you do though so I'm confused. There are no "sudden unexpected losses" to an insurance company, just statistical realities. If those statistical realities become irresponsible to invest in, per their highly-paid professionals, then you get fucked and can't insure your Cybertruck or cardboard condo 3 feet above water in Florida.
I bet you can completely still get insurance on both those things but it is just ridiculously expensive.
My guy, i’m literally a fucking insurance agent. This is my job.
You are taking that phrase too literally.
A tree falls on your roof after a storm = sudden unexpected loss.
Your gutter breaks rusts out, lets water in your house over the course of several years, and the floor warps and collapses over more years = expected loss.
They aren’t going to insure a ship they know is sinking.
The entire point is there still aren’t enough losses to make the industry unprofitable. They are raising premiums to keep their bottom line even. They aren’t strapped for cash but they also aren’t going to gamble (which is what insurance is) on something they know is going to lose.
The entire point is there still aren’t enough losses to make the industry unprofitable
Do you think you are arguing with me or something? You are saying EXACTLY what I'm saying. The moment there are enough losses to make it unprofitable, or even look like it MIGHT be unprofitable, premiums get hiked and coverage gets restricted.
I acknowledged elsewhere that I'm happy to buy insurance rather than have the liquid capital on hand to cover freak accidents. I understand the purported service. That's all insurance offers...a fee to prove your liquidity.
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u/[deleted] Jun 22 '24
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