Since we pay for car insurance in case sh-t happens, shouldn't we get that money back if sh-t doesn't happen?

Question

Car insurance is the biggest rip-off ever. I hate paying it. Sooo in case stuff happens, insurance takes care of it but then your rates go up!?! WTF? So if nothing goes wrong for a full year, shouldn't we get our money back?

Answer 1

I agree. Many people buy insurance and then won't turn a claim in because their rates will rise.

Answer 2

u seem like a total dumbass from ya qs and answers

LAMEEEEEEEEEEEE

iwish u would allow ims i would deff be enertained by ur dumb convo

Answer 3

Uh, no, then how the heck would they make money?  that's why it's called an "insurance", genius . . .

Answer 4

No, You did get something for your money. They "assumed the risk" for a stated period.

Answer 5

There is no absolutely answer for your question.However,explorer the information here will give you some ideas.HOpe it helps.http://car-insurance.online-tips.info/ca...

Answer 6

Then it would be a saving account.  And they would ONLY pay out what you put in.

But I agree with you that it does feel like a scam

Good Luck...

Answer 7

That's a Funny question..

The concept of insurance is based on something called the "Law of Large Numbers".

A large number of people pay small premiums into a pool or to an insurance company, It is expected a certain percentage of these people will suffer a loss or have a claim meaning a large pay out.

The money collected from the many are then used to pay for the losses of the few.

Premiums are charged according to the individual risk factors, loss history and likelihood of filing a claim for those paying into the pool while allowing a necessary percentage for operation and maintenance of the pool or company along with some expected profit margin for the investors or stockholders who orginally setup or own that pool or company.

As you can see, there really is no reasonable way to expect that one should be able to get their premiums back. That money has already been spent to pay for the losses of others who were in the pool.

Some years the company gets the premium and loss projections right and the stcokholders make a profit,

Some years they get it wrong and can pay out millions more than they took in.

In those bad years, the stockholders have also lost some of their investment money because it was used to pay the claims that exceeded the prermiums received by the insurance company, .

Insurance is basically a way of sharing the risk of a loss with others who are also in the pool.

This is why your insurer must always be vigilante for fraudulent claims. Fraud is the single number one cause of increased premium for the policyholders and losses above the expected average for those in the pool.

Fraudulent claims cost the policy holders money in the form of increased premiums and costs the stockholder money in the form of lost value in their stock.

Answer 8

tried to give a thumbs up to that >one< chick but apparently I am not worthy enough to be able to vote, so count this as a vote.

Answer 9

Your premium goes to paying other people's losses, and it is invested.  How else do you think the insurance companies pay for losses? If nothing happens in a year, your rates go down since you will get a safe driving credit.  

Car insurance and any insurance is not a rip off.  You pay $1000 for Homeowner's insurance,  the house burns down to the ground, and your insurance pays you $250k!   Seems to me that the insurance company lost a lot of money for that risk.

You pay $1200 for auto insurance.  You total your brand new vehicle and the other party's new vehicle.  The total damage for both about $50k.  The other driver was seriously injured sustaining a fractured femur requiring surgery.  His two passengers were also seriously injured with similar injuries.  All three claims settle at your policy limit of $100k per person, but only after suit was filed and some litigation had to run it’s course.  The defense attorney’s expenses total $20k.  You were also injured and your PIP coverage paid you $25k for your medicals and lost wages.  Total paid out $395k for your paltry $1200 premium.

Think about it.

Answer 10

This sounds like a good  plan to me. And you do not have to have any claims for it to go up. Mine did so I called and ask why, they said the state(Texas) said they could  have a rate increase so they just raised my rates. The last time I made claim was in the early 70's

Answer 11

Idiot, Al state Does that

and my GF is amazing looking (I bet there's a reason you named yourself Count Chocula.. can't be for being skinny)

Answer 12

Do you get your premiums back for life insurance if you don't die?

I have nothing else to say to you