Do Americans Understand how Insurance works?

Question

Everyone pays in a little to cover everyone, but not everyone takes out of the system all the time, only on an as needed basis

But you knew that !

Answer 1

i dont get it.

Answer 2

Thanks for enlighting me on the subject. your not trying to sell me car insurance are you?

Answer 3

As an insurance agent, I tend to agree with you.

Most folks think that they can get a brand new car when they wreck their 5 year old beater.....that's NOT what it was designed for.

Insurance was designed for many to share the damages of a few.  It is meant to put you back in the same sahpe as you were, immediately before the accident - no worse, no better.

SOme folks will argue with that, but, that's how it SUPPOSED to work!

Good luck and I hope this helps!

Answer 4

Sounds like you got it all figured out. Why do you only phrase your question to Americans.....smart guy????

Answer 5

Insurance sales people are in a precarious position - we are the only people on the planet that will sell you a product you hope NEVER to use.  

However, should the worst happen (fire, flood, serious car accident), you will be more than gracious for the fact that the money you spent on the policy is far less than the amoun the insurance company spent on your behalf to either the damage to repair your home or to the injuries you caused to others in an accident.

The law of large numbers states that your chances of ever needing the amount of coverage you purchase from the insurance company are slim, but ask the families in San Diego that saw their house burn to the ground last year if they feel that insurance is a worthy investment.

I believe in the products that I sell and I believe that the insurance companies, though they are set up to make a profit, are the only ones that step up to assist our economy to get it back up and running after a major catastrophe.

Answer 6

Duh...

Answer 7

Mostly, they do not.

Answer 8

The answer to your question is a resounding NO.

but then most people not directly involved in business are pretty apathetic about how any business works.