Have you noticed that what you’re forced to pay in car insurance premiums – an outrage in itself – also bears almost no relation to what you’ve actually done as a driver?
More precisely, to what you haven’t done as a driver.
No claims filed against you. No “accidents.” You pay (and pay). They collect.
Curiously, the principle is never applied in reverse. The policyholder – who is literally held up at gunpoint, forced by the government to pay and if he fails to pay, will be accosted by men with guns, not because of any harm he has caused but because he hasn’t paid – never receives a refund for not having cost the insurance company anything.
Meanwhile, all it takes is a “speeding” ticket or two to negate decades of claim-free driving. They collect more – even though you still haven’t cost them anything.
What a racket. Literally.
The ticket is punishment for ignoring a rule. But it is taken as equivalent to a claim – even though no damage has been done to anyone. It serves as the pretext for rate “adjustments” which could never be justified otherwise, given the absence of claims filed.
And not even that.
You can have an accident and ticket-free driving record extending back decades and still be forced to pay rates out of all proportion to the risk you present.
Italicized to emphasize the point.
You – an individual – are dunned based on statistics about demographics. Sex, age and marital status, for instance. Lumped into a collective with others who share these and other general characteristics. The insurance mafia then imputes risk based on what others in this collective have done – and mulcts accordingly.
Somehow, this is legal.
Somehow, this does not trigger ululations of outrage in the manner that walking across the street to avoid having to walk past a young black male does.
Both are forms of profiling. The assigning of risk values based on general characteristics.
If it is insulting – and unfair – to avoid this particular black guy because of some generalized angst about black guys as a class, then why is it ok for the mafia to express a similar fear of young guys (black and white) via generally higher premiums for all of them?
The third rail glows white hot!
It’s a nice racket. The government forces us to buy insurance from racketeering cartels who base what they charge us on profiling that would incite a civil rights “inquiry” in almost any other context.
And of course, we can’t say no.
That being the chief reason why insurance costs as much as it does for the should-be-obvious reason that whatever you’re forced to buy is always going to cost you more than it otherwise would, even if you said yes (freely) to it.
Mandatory insurance is literally an offer you can’t refuse.
Mafia apologists will claim that no one is forced to buy insurance; people are only required to buy it if they have a motor vehicle.
This is like saying no one is forced to pay sales tax on pants since no one has to buy pants. And it doesn’t address the no-harm-caused (but forced to pay regardless) issue or the effect on cost of compulsion.
Compulsion is at odds with the basic concept of insurance since it serves to mute the risk signal that is the the heartbeat of legitimate insurance.
If everyone is compelled to be “covered” then there is less reason to be careful – to avoid taking risks that could incur losses.
Why worry about it? I’m covered!
People forced to buy insurance are more likely to use it, too.
Instead of paying out of pocket to replace a cracked windshield or minor body damage they file a claim. Understandably – as it’s the only way to get a return on their “investment.” But this results in costs going up for everyone (just as mandated health insurance has gone up in cost for everyone) because everyone is using it for everything.
Insurance – in concept – is meant to be used only for some things. The big things. That is how risk is spread – and costs kept low. But mandated insurance upends this. Costs go up because there is no incentive to keep them low. We’re forced to pay for coverage – and this gives us ab incentive to use that coverage.
Many of us have to resort to using the coverage, too – precisely because we’re forced to pay to be covered. And pay more. We have no cash left to “cover” small things out of pocket.
It’s all been Hoovered away by the mafia!
Most of us would be able to afford to pay out of pocket for little things if it weren’t for the fact that we’re forced to be “covered” for everything.
Just the same as most of us would be able to pay for small doctor bills if we weren’t forced to pay for “coverage” – which always costs more than the little things.
The final outrage?
Mandatory insurance doesn’t force people to buy coverage. Just responsible people. The people, in other words, who pose the least risk – and who are most likely to take responsibility for harms they actually do cause. Who would freely buy reasonably priced insurance to cover the big things – which would be reasonably priced if they were free to say no to unreasonably priced insurance.
Irresponsible people, of course, remain perfectly free to skip mandated insurance – and impose harms they aren’t held responsible for – because they can’t be held responsible for them under the system as it is and they are well aware of this.
What does the system do to the illegal alien who drives without mandated insurance and wrecks your car?
If you answered – absolutely nothing – you get a star.
He has no money (that can be snatched, at any rate) and no on-the-books wages that can be garnished. The government doesn’t want him in jail because that costs money and the object of government is to take it. Even if he does go to jail, what benefit is that to you?
Your car is still wrecked – and guess who’s gonna pay to get it fixed?
You know the answer to that one, too.
. . .
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When I still had a US driving license, I titled and insured my car in my Mother’s name. She didn’t drive so she had a “perfect” driving record. If I were ever ripped-off by the Revenuers, there was no insurance discovery of the ticket so her insurance rate remained the same.
That’s fucking brilliant! Too bad my mom passed away though…
If she moves to Chicago she’ll still be able to vote in the 2020 election…
I work with a guy who’s not afraid to “self insure” (kind of) His wife drives a 15 year old SUV that has full coverage on it. He claims it costs her $800/yr. He drives a paid-for expensive 1/2 ton luxury truck and a valuable classic car. He has “drive out” tags on each. Each have titles he has not filed with the DMV. He carries documents showing he “just” bought the vehicles and updates the Bill Of Sale monthly. In this way he pays no vehicle tax (expensive where he lives- Treasure Coast of S. Fla.) and pays no insurance (also expensive where he lives) He says has been pulled over by AGWs for having drive out tags (his have an out of state dealer’s name on them) and he respectfully and most politely shows them “ze papers bitter” and goes on his merry way without citation. He says it saves him $3700/yr in tax and insurance. They key I suppose is not using debt to buy an expensive car. The borrower becomes servant to the lender and all their conformist rules.
Car insurance really is a racket. I know I’ve paid out many times more than my beaters cost in insurance over the decades and not gotten a nickel out of it. These days your credit score even affects your rate, so they’re in cahoots with the credit mafia as well – raising the rates of people who can least afford it, or those who prefer not to jump on the credit treadmill to begin with.
It used to be in New Hampshire insurance was not required for someone who was accident-free. I don’t know if that is still the case. You really have to like winter to live there though.
Eric “Insurance – in concept – is meant to be used only for some things. The big things. That is how risk is spread – and costs kept low. But mandated insurance upends this. Costs go up because there is no incentive to keep them low. We’re forced to pay for coverage – and this gives us *ab* incentive to use that coverage.”
Just a typo.
Hey, at least you have choices. Here in BC the government owns ICBC, the single mandatory insurer. This is supposedly a ‘not-for-profit’ state insurance company. And when ICBC builds up a surplus from overcharging and lower claims, the government simply grabs the surplus ($2 billion last time) for general revenue instead of lowering rates accordingly or refunding the obvious overcharging.
Worse, most of the drones around here think that is just fine. For the good of all, you know. Implicit in the attitude, good for me, fuck everyone who loses in this transaction.
It’s all the same with everything.
I swear I think that cops only exist to protect criminals from decent citizens.
You’re more right than you probably realize. On the one hand in a free society the position of an officer of the court- a peace office- has a primary function of protecting an accused from lynch mobs and aggrieved family- to preserve and orderly “due process” administration of justice.
On the other hand the function of law enforcement officers is to provide a steady stream of criminals for the system- to gin up victims for the corrupt courts and lawyers. Cops/law enforcers are a very recent phenomenon in these united states. Because what they do is supposed to be rendered impossible by the Bill of Rights.
I just moved a few miles into a historically black neighborhood that has been historically run down and is now flipping into steady middle class homes. My annual insurance on an 09 impala just went up $300 (for moving 5 miles) because people in this neighborhood– the few who actually do carry insurance that is –make a higher percentage of claims because when they get hit by a moron in a junker, that moron drives off never to be seen again. I have to pay more because my responsible neighbors have to make more claims for my irresponsible neighbors. Even though I have a clean record, I still have to pay MORE. RIDICULOUS! Forget the fact that in the neighborhood I moved FROM, the average car is worth $90,000. You’d think the increased risk of accident would be offset by the decreased car value in my new neighborhood where the average car is worth probably $4,000. NOPE.
I also only buy comprehensive top rate insurance because, like Chris below, there’s no point in making a claim for ordinary accidents. I just want good coverage in case I wind up in the hospital from an accident or my car gets completely destroyed. Again, I know, the illegal alien doesn’t have to worry about those potential hospital bills or “buying” a replacement car.
This started years ago under the guise of No Fault Insurance. Ad after ad on TeeVee showing people with no insurance not paying for damages. It was all false, no,,, some didn’t pay but the overwhelming but the majority did. I said at the time that it would lead to forced insurance and it did. It is also the precedent for forced Health Insurance.
It’s so bad that recently we received a notice that threatened our coverage if we did not get the Agent to verify (with pictures) where we parked our cars! It was comply or die. When I contacted them about it they said it was because my previous address was out of State (Texas) and fraud was possible……. Over 20 freaking years ago! And during that 20 years they happily took my premium payments. Afterwards I learned it affected many people. I personally believe it was the federale’s and their insipid “Real-Id” BS… I have to prove unequivocally I am a legal citizen while the Bolshevists at Corpgov uses citizen taxes to pay benefits and transports to a city of choice almost a million illegals a year that insult our country and trash our culture.
I’m beginning to rant so I’ll stop here by saying being forced this and forced that is NOT the principles the nation was founded upon. When the Bolshevists finally get in power (and they will) this will be the least of our problems!
Sorry,,, did not proof the comment.
“It was all false, no,,, some didn’t pay but the overwhelming but the majority did.”
It was all false, no,,, some didn’t pay but the overwhelming majority did.
And spell check, bless its little heart:
Here’s another sad part of all this crap. Even if someone else hits me and their insurance co. repairs my car. I just lost a lot of $ because now my car can only get wholesale on a trade. Generally many thousands of dollars.
Car insurance has almost become unusable for any claim except a total loss.
I should clarify, for people like me, who tend to trade in cars before they are considered wholesale trades.
For me, if I bring my car back to a dealer and he wants said car on his lot, I get a much higher trade value.
It has worked for me for 20+ years. My dealer is happy because he can make a few K on my low mileage late model car, and I get a great deal on a new car.
BUT, same dealer(s) say it can’t have any accidents or carfax reports or the car is worthless to him for his lot.
So a minor fender bender that was say a $5000 repair from insurance does two things, makes your rates go up and makes the car untradable at any decent value.
So again, for me, if the repair is anything under around $5K, I am still better off paying for it myself.
So what the hell is insurance for anymore? Only a major or total wreck for me.