What is the aim for insurance companies?
Honestly, What is the point to an insurance company? They rape you of your money and god forbit you have that one fluke, and go to engineer a claim, you most likely enjoy to fight near them and if you get your bearing, more than likely they rape ya even more of your money. You recompense alot for this crap, and when you need to use it, you should be capable of get the money lacking putting up a fight or anyone raped more afterwards. It seems similar to a joke. Criminal is more resembling it. Rape us of our money then brand us fight to use it. I can hold a savings article and put all that money into it and gain it without a fracas. I hate insurance... and honestly if i ever get into an accident... i wouldn't bring up to date them...Id just draw from raped of more $ most likely. There should be one rate across the board base on age, experience, vehicle, etc... not this $5000 from progressive then $1000 from geico. That is bull! But this is a screwed up world anyways.
Answers:
As far as I know, nearby is no requirement for carrying insurance. There is only a requirement for financial deposit. If you don't like the road the insurance companies work, then post your own money beside the State and become a qualified self insured.
The reason for insurance is to share the risk. That scheme that you won't have to reimburse 100% of any potential accident, (your failure or someone who hits you) out of your pocket.
So...if you can afford to be a qualified self insured, go for it, and you won't enjoy to worry in the region of the premium amount, or how much money is paid out. All you will enjoy to worry just about is whether you have adequate money in the edge to pay any claim you are at eccentricity for, or whether or not you can afford to lose your house, your paychecks,etc.
PS, I live in one of the chief rated insurance states. Yet, I still take-home pay it, and am thankful to grasp it. The insurance company provides me cost of defense if needed, takes perfectionism of my screwups, and because other people may not pass insuance in ruin of the law, it protects me from them too.
Your ring.
Faye is correct, one more item I would like to incorporate - if you want a government controlled rate for auto insurance, move to Massachusetts. The rate is impossible to tell apart there no situation what company you go to. It isn't cheap any.
Now that you get that off your chest
Is in attendance a question within this? Or is the only query "what is the reason for insurance companies?
The foundation for them is because people want to buy insurance to protect themselves from catastrophic losses. For example. Say you catch appendicitis. Do you want to pay the $10,000 or so that it's going to cost to move about have surgery or would you a bit have insurance to cover the cost?
I must say aloud though, if you're getting a quote of $5000 from Progressive, you must be a really bad risk. How abundant tickets and accidents do you enjoy? Premiums are based on a great deal of statistical information. One of the factors is what are the probability that this guy is going to get into an quirk that costs a lot of money? If you hold a lot of tickets and accident, that makes you a intensely high risk and you will take-home pay a much higher premium after I will.
The rates ARE based on age, experience, vehicle, etc... It is also base on your risk factor. They count the fact that you enjoy accidents & tickets.
That is why near are different rates for different people.
Go to Massachusetts. They set their rates for auto insurance. There's no competition.
Because there's a maximum rate for bad drivers, the obedient drivers also pay much more in that for insurance than everywhere else.