Free Republic
Browse · Search
News/Activism
Topics · Post Article

To: plain talk
(Hello, I just wrecked my car and my house is on fire...I'd like you to insure them) Points well made. I am waiting for the liberals to demand that they can sign up for auto insurance after they wreck their car.

Auto insurance is a good example but not for the reason that you cite. To drive, all states require the driver to carry at least liability insurance. Most states require auto insurers to insure a certain amount of high-risk drivers in order to sell insurance in the state. There is a limit to how much they can cherry-pick the best customers. Why? It was decided that for society as a whole, it is better for everyone to have to pay a little bit more for auto insurance than to have someone suffer a catastrophic loss due to an uninsured driver.

32 posted on 05/07/2017 5:10:19 PM PDT by CommerceComet (Hillary: A unique blend of incompetence and corruption.)
[ Post Reply | Private Reply | To 19 | View Replies ]


To: CommerceComet

The point being that in either case - health or auto - the insurance model breaks down if people are allowed to game the system and wait until they have a catastrophe and then sign up for insurance and expect the insurance companies to pay for it. This makes everyone’s rate goes up in order to subsidize someone who refused to buy insurance.


36 posted on 05/07/2017 5:21:47 PM PDT by plain talk
[ Post Reply | Private Reply | To 32 | View Replies ]

To: CommerceComet

Why? It was decided that for society as a whole, it is better for everyone to have to pay a little bit more for auto insurance than to have someone suffer a catastrophic loss due to an uninsured driver.


As a risk for an activity. But note that the insurance even in your example is liability insurance...not mandatory coverage on your own car, or even on you.


72 posted on 05/07/2017 10:29:46 PM PDT by lepton ("It is useless to attempt to reason a man out of a thing he was never reasoned into"--Jonathan Swift)
[ Post Reply | Private Reply | To 32 | View Replies ]

Free Republic
Browse · Search
News/Activism
Topics · Post Article


FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson