The Big Insurance Scam

Shawn Olson

Posted Oct 19, 2004
Last Updated Aug 10, 2014

I recently received a scathing email from a banker regarding my views on insurance. The banker said that I must be living in another world than the rest of humanity because I think that the insurance industry is one of the biggest scams to face the modern world. Well I do live in another world at times… but I don’t think his disgust with me on this issue is well founded.

First, I feel it is important to divide the logic behind insurance from society’s current implementation of insurance. It’s important to separate them because I want to make it clear that the reasons behind insurance are wise… and I do not dispute the value of creating a safety net in the form of insurance. The problem lies in the way insurance companies do their business.

The basic concept of any insurance is this. You know that this world is precarious. You know that there are no guarantees for safety in health, finances or any other commodity. You know that many of the factors involved in the continuation of your safety are beyond your control, and even those factors within your control are fallible simply because no one is perfect. So, wherever possible and reasonable, you should fortify yourself in the event of calamity.

In ancient times insurance was carried out in the form of storing grain for winter months. In fact, we still do that… but our minds have long forgotten how precarious harvests are.

The logic behind preparing for unknown disasters is not in dispute. What’s to be disputed is that marketing strategies mixed with political tinkering have not only covered basic truths of reality from many people’s minds, it has also created a system that encourages increases in the cost of several industries. Some of those industries, such as the auto industry, are areas where the average American is forced to pay insurance companies for services they often never use.

The blanket over many eyes is the false security insurance provides. Being prepared for disaster is important… but there is a line beyond which a levelheaded strategist won’t go because the frequency of disasters is so low that paying to defeat a phantom risk is too costly. There are an infinite number of disasters that could happen at any moment… but most never happen because of intelligence and order. If you want to prepare for them all you will end up spending one hundred percent of your time planning to defeat the infinite list of tragedies that could come your way. And then after all that you can have a heart attack and die.

Again, I’m not arguing that being prepared and having a plan to deal with tragedies is wrong. But the insurance companies want you and me to believe that they will protect you from tragedy—when in reality there is absolutely nothing insurance companies can do to protect you from tragedy because they have no bearing on the actions you take in your life. They know that they can’t do anything about it… but they market their services as a form of protection.

Consider auto insurance. A drunk driver slams into you. Insurance had nothing to do with the other motorist getting drunk… or with you being on the road that night. And if you die… there is nothing that the insurance company can do about it.

The logic is then turned to say that you and I need to carry auto insurance to protect other drivers from us. Again… there is no protection. Carrying the insurance does not do anything other than help defray the cost or repairing the damages after the fact of tragedy. Of course this is how it works… but marketing schemes continue to make the insurance seem like a protection from disasters.

Health insurance companies are scams too because they put it into everyone’s mind that we are entitled to living past one hundred years old; they also increase the cost of health care because of the plans that pass covered patients’ bills onto insurance companies… allowing hospitals to charge extortionately higher for medications that would otherwise cost much less. One manual on reducing hospital costs stated "Hospital costs for medications are notoriously high.” One of the recommendations offered (buying these medications with insurance plans) displays the mental block that Americans have with this issue—they assume that they are getting the medications cheaper because of insurance when in reality the practice allows pharmaceutical companies and hospitals to raise the cost of medications and treatments… a cost that is passed back to the insurance companies and then right back into the consumer’s lap.

Some types of insurance companies are even forcing doctors to close shop—as in the case of obstetricians that can’t keep up with the rising premiums in malpractice insurance.

Insurance companies are businesses. They exist to make a profit. There’s nothing wrong with that. But they play a major role in raising the cost of living and in sustaining the increase in cost. Those industries that have snuck through the back door of the legislative process (like auto insurers) have created a monster in the system that is a giant parasite on the American economy—private companies are essentially taxing the American public.

Furthermore, the floor seems to fall out when you consider another fact. In times of major disaster, when a company, family or individual needs the help most—when they really expect all the expense into insurance companies to pay off—insurance companies find ways to fall short on their promises.

One shady tactic of insurance companies is in the fine print of many insurance plans. Oftentimes the consumer was never educated by the insurance companies about lasering, a strategy insurance companies use to limit financial loss by limiting their financial responsibility in costly claims. Lasering allows insurance companies to limit their payments on partially self-funded companies when, for example, the insurance company knows an employee has an expensive illness.

The recent barrage of hurricanes in Florida is another case in point. Insurance companies struggled to pay for all the damages. Who came in to clean up the mess? The U.S. Government has already spent more than $1.8 billion in aide on Florida. Of course… insurance companies paid their part… Economy in News reported that the hurricanes that hit Florida could cost the insurance industry $50 billion all told. One company, it said, "might even have to dip into its reserves to cover the costs.”

That means a rise in premiums. That means the cost of living goes up. It will go up for the big picture, not just for the home owners of Florida; the cost of the disasters cannot be paid for from the funds pulled from Florida alone—it’s the homeowners living in areas with extremely low chances of disaster that pay a large portion of this bill. In other words… people who don’t need insurance are paying for the tragedies of those who do need insurance.

Entrepreneur.com reported that "small and midsize companies see health-care premiums outpace the cost of their employees’ claims”. The cost is going up… but the services are not.

Tragedy is not something to flirt with. Being prepared to handle it is wise. Requiring financial responsibility among people partaking in hi-risk activities that can harm others is prudent. I don’t recommend banning insurance companies. But I do recommend boycotting most of them and pressuring lawmakers the open their eyes to the cutthroat scams being pulled on the American people by the current insurance industry.

To end, I want to quote from the banker who felt offended by me. He wrote, "Insurance companies never know who the next driver is that may cause a 10 car pile up and cost them $1,000,000. It could be you.” I suppose that’s true. They also don’t know who the next person to steal my wallet will be; when a meteorite will hit the USA again; when a drunken tanker captain will smash into shore again; when a swarm of killer bees will attack a bus full of children; when a rogue politician will start a war.

There are many things that insurance companies don’t know. But there are a few things they know well… like getting your money. See, insurance companies are good at eating the pie and having it too. Actually, they are good at taking your money and keeping it too. The odds are that you’ll never see a return on the "investment” you’ve put into the security of insurance companies.

Insurance

Skeptical essays about the insurance industry.

  1. Insurance Fraud: The True Story
  2. The Big Insurance Scam
  3. Obama's Health Care Reform

Comment

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russell

May 2, 2022

Great article. This is 2022 and the insurance industry is still taking our money and keeping it, an dropping you if you dare(!) make a claim. How is this scam allowed to persist?

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Mark

Jan 13, 2015

Yes indeed, all one big pile of scam-a-roo!

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Carrie

Aug 10, 2014

"First, I feel it is important to divide the logic behind insurance from society’s current implementation of insurance. It’s important to separate them because I want to make it clear that the reasons behind insurance are wise… and I do not dispute the value of creating a safety net in the form of insurance. The problem lies in the way insurance companies do their business."


Dear Dear, that's quite an eclectic view that serves the exploitative insurance racket well.


Insurance is inherently a parasitic investor class tool to create wealth of the backs of the mass of working people. Why do blogs like this always end up blaming a few bad apples but don't see the true exploitative nature of the entire system, in this case insurance (Capitalism)?

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Shawn Olson

Aug 10, 2014

Thank you for sharing your thoughts.

I believe that you may have taken the passage out of context. This article was in response to a banker's response from another article I wrote called Insurance Fraud: The True Story. The truth is that my own opinion is that the Insurance Industry itself is the single largest parasitic entity against the American Common Wealth. There is nothing in my opinion or body of work that suggests anything other than this.

In the quoted passage, the intent is to make it clear that there is a biological incentive for preparing for disasters (storing grain in anticipation of famine, for example). That is the core of why insurance is, in some ways, fundamentally essential. Understand that this could simply mean educating yourself to avoid problems, etc, and using wisdom as an insurance policy. But that basic logic should be contrasted with the insurance industry driven by remote entities that get the backing of lawmakers to enforce the public into systems of paying for services that most never need or use.

I'm pretty sure that if you read this article again and the one it links to, you will probably see that your estimation of the article was inaccurate.

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Rocky

Feb 18, 2015

Well said Carrie

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richard sievert

Jul 10, 2013

The scandals will not be forgotten, and every bad decision will be one day be met by a question, and that will be why? You rotten scoundrels are all seen even if you were behind led walls, says the firm body of knowledge, and that love is the key to even fire!

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Mhover

Jun 18, 2013

Insurance is a rapidly growing cancer. Good article!

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JTL

Mar 29, 2013

Apparently now it's home owner's insurance going through the roof.

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K-man

Apr 20, 2012

Everybody knows it is a scam. The thing we should be asking ourselves is how people can take back their lives and money from these thieves.

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Sundiii

Feb 16, 2012

Yes insurance is a devilish scam that's existed for millennia & should be eliminated forever! USA like it because it "creates jobs" for tiny wages for 99% of the people. When monthly premiums are 270 up into the thousands, it's too expensive, so eliminate it & end wage slavery is the only solution, which will also end world poverty.

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jb

Feb 13, 2012

Insurance is a scam. No question.

Say your a doctor and you make a mistake in the or. Your then Sued and your insurance goes up. In order to stay in business you must raise your rates. Now the poorest of your patients cannot afford your service. The are left with only one option. Get health insurance. All Insurance is a pyramid.

In the last paragraph you can see bow rising Insurance costs create demand for more insurance. Think about this. You pay taxes to the government who's job it is too protect you from outside threats. That's why there's always a war and an enemy. You pay insurance to protect yourself from internal threats. Ie other Americans. The big problem here is where is the checks and balances? If the government can rob me to fight fake enemies abroad and insurance companies can rob me to fight against bad drivers or accidents within. Who is protecting me from the government and insurance? I would really like to know because I feel like there's a big giant dick jammed up my ass with giant balls slamming into my heels every step I take but no one seems to notice anything out of the ordinary going on.

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terry mullen

Dec 28, 2011

what about these 800 lawer numbers,that the lawyer sends the insured to a doctor who annalizes them , and the treats them,the facilities are owned by busness people, they send drivers to pick up the patients,and they pay marketing companies to do the adds, i know someone who works in one, and frankly its scares me,the players are to strange

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Dec 9, 2011

People have heard that gambling is a tax on dumb people. That statistically, you're throwing your money away. If the house is in the gambling business, they have to turn a profit. How can they turn a profit, if your average cost/gain ratio is anything but below breaking even?

The same appears true for insurance. They're a company, a business. And you seriously hope to sink any amount of money into these people and get more back? That's impossible. For any insurance company to turn a profit, they must give back less money to their customers than their customers give to them. Which means that on average, the customers are, once again, just throwing their money away. Why pay someone else to cover your bill when you could be paying less out of your own pocket?

It's simply a scam, a tax on stupid people. And remarkably, in some cases, it's government enforced. It's not unheard of for people to pay more for the RIGHT to drive their car (insurance), than it is to actually get it to physically move (fuel)!

How f@#$% up is that?

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K

Nov 7, 2011

HOW DO WE FIGHT BACK THE UNFAIRNESS of the health insurance company.
I received a package of changes which must have cost BCBS a pretty penny to put together and I am sure it does NOT benefit me.
SO, HOW DO 'WE THE PEOPLE' FIGHT BACK?

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Shawn Olson

Nov 11, 2011

If I knew... I'd give a solution. Unfortunately, I don't really think it's something that can be solved easily because our society is already saturated with the conviction that it is "right" and "responsible" to buy into insurance.

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Bobby Brown

Nov 4, 2011

I agree with this article but I would like to exapnd the theme. Insurance is the ONLY industry in which a person can buy a prodcut, have to pay again to use the product and when they product is used the product may self-terminate. We all buy insurance, (this is called the premium) we all have to pay something on top of the premium which we paid, (this is called the deductible) and in many cases the insurance company may decide that because we decided to file a claim, our policy could be canceled or our premiums will go up.(This is the self-termination I mentioned earlier.

No other industry on earth does business like that! To add insult to injury, many companies will fight a claim tooth and nail refusing to pay for this procedure or that piece of roofing shingle etc. If I get sick, my insurance company will only pay for labwork if it is done at the hospital where I work. Now, I believe that all medical labs have to have a particluar standard of expertise in order for them to operate and those starndards are the same wherever I go in the US. Yet my insurance company seems to think otherwise. It really makes no sense!

Further, I remember reading something years ago that said insurance companies use pretty much the same tables, algorithims and financial models that casinoes in Las Vegas and Atlantic City use. Obviously, the gambling industry exists to make money and only a fool would open a casino in which the house would lose the bet more times than it won. Insurance is the same thing, except it is legal in all fifty states and in some cases it is required that person purchase insurance. That is also a business rarity: forcing the public to buy something. I am not required to buy food, clothes, and I can live outside if I choose to--many people live there lives without those things, though perhaps not because they want to. Yet I am forced by law to purchase something, that statistically speaking I will not use very often if ever.

Risk is a part of life. Careful planning can eliminate the need for insurance in most cases. Imagine how much more money people would have to enjoy life if we didn't waste it on fear of the uknown?

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Shawn Olson

Nov 11, 2011

Well put.

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Rory Kremer

May 26, 2011

Of course a banker is going to disagree with you...they are as crooked as the insurance industry.

Our country will be better off once people quit spending money on intangibles. I you cant eat it, drink it, live in it, drive it...dont buy it.

Those who sell intangibles (lawyers, bankers, insurance sales persons) are of course going to call you crazy, since you are not buying into their scams.

Your line of thinking perfect, and I obviously live in the same, other world, that you do.

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Adom L

May 10, 2011

I don't want a return on my investment with my insurance. It's money I'm glad is wasted. I've been in car accidents, had hurricanes hit my house and destroy my fence and spent time in an emergency room. Only once did I feel my insurance company scammed me and fell short with my coverage.

I get it. Most of the time I'm paying for a service I don't need so people who do need can benefit from it and the company can make a profit. That's how it works. I'd rather be the guy who pays in and doesn't have to get tossed around in a crumpled car to collect. But previous comments are right. There's no insurance like covering yourself. I've got friends with good jobs who couldn;t come up with the $1000 deductible when their houses were damaged in storms. If you're paying so much for insurance that you can't save enough for the deductible you're paying too much. Insurance rates need to be addressed annually and once you've got a certain amount saved you can probably look at lowering coverage. Own your house? Maybe you don't need quite so much life insurance or homeowner's insurance. Cars paid off? Decide whether you still need insurance for fixing the car or just to cover injuries.

The article is right in that insurance is a necessary evil to an extant, but needs to be used responsibly. I don't, however, think that is should be treated like some kind of lottery where you're the winner if you get hurt bad enough to get a big settlement.

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Shawn Olson

May 16, 2011

I am perplexed by any statement including the phrase "It's money I'm glad is wasted". But to each his own.


I never would say that having to make an insurance claim is like winning the lottery since it implies some kind of pre-existing disaster. It is like the lottery, however, in terms of the randomness of benefiting from it.

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Malcolm Thompson

Mar 24, 2011

Hi guys, did you know that if you do not claim for 10 years, you become a high risk and they sometimes double your premium ? This is the ONLY wrong thing about insurance. They crunch the numbers and see that people who have not claimed for 10 years are twice as likely to claim in their 11th and 12 year on no claiming - so they punish you with higher premiums hoping you will go elsewhere.



Anyone else had this?



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Amber

Feb 15, 2012

I just reached my 10th year and was shocked when I received my bill it more then doubled and all they can tell me is that their rates went up. I have never filed a claim and am not finding any better rates as well :(

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ok wow

Mar 4, 2011

Agree with this article 100%... insurance is nothing but a filthy scam. But as "Bob Fisch" says, it goes a lot deeper than just the insurance companies. Lawyers and judges make their livings from insurance cases- so that their interest in justice is corrupted from the get-go. Why is medical insurance so costly? Because if doctors mess up their insurance providers will be sued for millions. Why millions? Because the fat-cat lawyers on both ends of the equation are milking the insurance companies for as much as they can. The entire system has lost sight of what insurance is actually about i.e. PROTECTING PEOPLE. Sadly, it's become nothing but a two-fisted money grab.

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Susan Richards

May 6, 2010

I agree, insurance is a ripoff. If you have a car accident and file a claim they raise your premium so that they get back everything they paid out plus a profit. They never ever lose. Any lawyers out there that want to start a class action against these crooks. They should not be allowed to raise your premium because you have a claim. If so, then what's the point of insurance. They make a ton of money off of people who never file a claim. But as soon as you file a claim they raise your premium. This should not be legal.

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unknown

Jul 10, 2013

many things in this world are like that, and shortly going to be eradicated by, and unknown force arm up!

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Bob

Mar 18, 2010

A MODERN-DAY PROTECTION RACKET Whoever first got the idea to offer "protection" i.e "insurance" against life's tragedies, lawsuits, whatever was a pure genius. Initially insurance may have been a good idea, but today it's a good idea gone to the dogs, namely the new racketeers known as the insurance industry. Even notice how little you hear about organized crime these days? Why should they risk arrest and jail when there are plenty of legal, if immoral, ways to steal the public blind. While there are any number of other legal scams like the credit card industry, the education system including the unbelievable college text book ripoff publishing industry, the health care system, and who could forget the American "tort system" which is the heart and soul of our legal system. But to me the insurance system is the worst of all the American "fleecing" scams because it not only takes money under false pretenses it also sells a false sense of security. I would love to see the establishment of a national insurance co-op funded by the premiums of citizens and managed by a board elected by them. This has gone way too far. It's a crisis of immorality and lack of integrity and borders on the criminal.

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fddf fdf

Mar 1, 2010

insurance is important in business, especially in goods shipping, and insurence against civil claims. However insurance for physical person's use can be justified only in few cases - e.g. if you live in really disasterous region or you have dangerous work.

Everything else IMO can be covered and will work more effective by creating personal savings account and put aside some sum. The logic is of course simple - insurence companies are very very negative to pay out any money and will find proof that they have no obligations in particular case. If you can finance your own misdeeds, you're safe and don't need to stress about them.

A person should be able to finance for himself at least a month in hospital etc. The situation is different in countries where strong healthcare system is established.

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JD Long

Dec 17, 2009

I have searched and searched for a book I read back in the 80's, entitled "How Insurance Companies Rip You Off, and What You Can Do About It". This was after getting my insurance license so I could sell for A.L. Williams (which is another story). The book was written by a man who had been in the Million Dollar Round Table and became disenchanted with the Whole Life business, due to the inequities in the pay back vis-a-vis the premiums paid. This was a great expose' book. I would love to read it again, but I'm afraid the insurance companies have bought and destroyed all the copies. How's that for a conspiracy theory? I'm really pretty sure the title is right, but I don't remember the authors name. Have you or anyone else ever heard of it? I actually checked it out from the library in about 1982. Now, it's not even in Bookfinder.com. Thanks, JD

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Eric Yohe

Dec 12, 2009

Insurance is organized crime at it's worst. Raise revenue, cut expenses. That is the companies fidicuary responsibility to it's investors. The insurance companies are not in the business of helping people, they are in the investment business. This is the basic problem with insurance. In most cases we are legally forced to buy it. Our premiums are invested to give the company and investors their return. The less they pay out to customers the more return for investors. This is capitalism, and that's great. I'm a business owner, that's how I provide for my family and employees. The difference is, I can't deny my customers service, lie to them about what I'm going to do, or drop them as customers if the use my service. Does that make sense to anyone; pay auto insurance premiums for years, get in an accident and either be dropped or have your rates go up! What other "business" can operate this way and get away with it. Insurance needs to be non-profit or non-mandatory. It is one of the big, sad lies of our society and it's a pathetic shame. If you work in the industry, shame on you. You'd be better off working in one of those "penny stock" boiler rooms, cold calling fools to invest their hard earned money in the latest big deal.

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Joe Peden

Dec 4, 2009

As a motorist in the U.K we are bled white by insurance companies and our government. we need to come together and stand up to this bullying.I would like to know what happens to all our money and why do I have to pay an excess when I already pay them for cover.It is a way of making money that the Mafia would be proud.I say No to insurance No No No,if you work for an insurance company please kill yourself for the good of mankind.

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Crooks For Sure

Sep 27, 2009

Insurance companies are the closest thing to legalized robbery in the states. They force you to get covered or you go to jail? You know what Uncle Sam? Stick a cork in it.

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M Moose

Sep 8, 2009

We have lived with insurance for so long we think it is normal. It is a betting scam where we all have to bet against the house and I think we all know how stupid that is. The insurance companies know all the odds and have all the data. If they are willing to insure you for something rest assured it probably won't happen and if by some wild chance it does you can also rest assured that the fine print somewhere will keep them from paying up. I love the thought of betting that I will die before I'm 75, of course the odds are I won't so they plead with me to protect my loved ones in case something happens to me but when I actually get to an age when the odds are I will die then the coverage is either dropped or reduced to part of the actual amount already paid in. Medical insurance is even worse. If we want to fix our system then insurance reform is not the answer...doing away with insurance is.

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Chris

May 6, 2009

News flash for the insurance-lovers out there: INSURANCE COMPANIES WOULD GO BROKE IF THEY PAID US MORE MONEY THAN WE PAID THEM. Insurance should only be used for catastrophic risks. Americans have become so ignorant of this, that companies like GM have been effectively bankrupted by labor that expects ridiculously comprehensive insurance. Insurance should not pay for very likely events - your cavity in your lower left molar, your wife's pregnancy, your yearly checkup. This only increases the overall cost. You used to pay the doctor or dentist for their services, now you pay them AND the insurance company - they all need to be paid. We aren't ahead by including insurance companies into the game for routine expenses. Figure it out, folks.

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Ismail Bhai

May 2, 2009

A great article! The whole world is following trend with this insurance crap. Why should anyone else be help responsible for your fate? The American public needs to realize that if they saved the same money that they put in insurance, they would be better off.

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Al Liepold

Feb 26, 2009

I could not say it any better, If I could I would not buy any and take my chance. But the insurenc companies had it made mandatory to by law to carry insurance, by buying politisens. And pass that lobing cost on to me also.

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Chaotic lives kept

Nov 3, 2008

Your article survives the passage of time, always in the limelight and its impact current. It interested me and intrigued me, to the point I felt I should add a few of my responses

"Insurance companies are businesses. They exist to make a profit. There’s nothing wrong with that."



Oh yes there is. There is a lot of 'wrongness' in there. And by not admitting is as dipping your (our) head like an ostrich, not in sand but in a pile of excrement, to avoid seeing it.

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WILL HERDMAN

Sep 17, 2008

THE PART OF THIS ARTICLE THAT IS MISSING IS THE PART ABOUT SCAMING THE AMERICAN PEOPLE ON THE SALE OF INSURANCE WHAT THEY WILL NOT TELL YOU IS MOST LAW FIRMS CAN NOT INTERPET THE POLICIES. IF THE COMPANYS TURLEY WERE IN THE BUISNESS TO PROVIDE A SERVICE THEY WOULD NOT NEED TV ADDS WHEN YOU TAKE CARE OF THE COMSUMER BASE IT WILL TAKE CARE OF YOU BUT ALL CEO BELIEVE SPENDING 65% OF THEIR BUDGET ON ADVERTISING IS GOOD FOR BUISNESS WHEN IN FACT THE AMERICAN PEOPLE PAY THE BILL BOR THESE ADDS ONLY TO MUTR THEM OUT. AND IF YOU SHOULD GET IN A AUTO ACCIDENT YOUR INSURANCE COMPANY WILL NOT BE THEIR TO HELP AND THE LAWMAKERS HAVE PASSED SO MANY LAWS TO PROTECT AMERICAS BIGGEST SCAM IN 1944 THEY PUT A LAW IN PLACE IF A COMPANY FILES CHAPTER 11 THEY DO NOT HALF TO TELL THE POLICY HOLDERS SO GOOD LUCK BE SURE TO SAY HELLO TO THE LAW MAKERS AND WATCH FOR THE NEXT SCAM.

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p carmean

Jan 31, 2011

Keep continuing your case. it works

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Patrick OMalley Jr

Jul 9, 2008

Great, Heres my idea; insurance companies must offer a form of profit sharing, ie. straight cash back annually and quarterly, or in stock whatever the policy holder decides, but lets be factual the 1000 bucks you dump on them every year never comes back and thats not getting what your paying for. I buy a house the house is there. There it is. I buy insurance, maybe i never use it. but they say good thing you have it just in case. Its almost like to get my money back I should get a car accident. some people do this by arson. Its criminal but the addition on the back of the house looks pretty good. This payback would help the consumer and spur compitition.. Patrick

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rich sievert

Aug 4, 2009

heaven turned it's huge head at what you said '

thank you

also at what was written for your response'

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Brian Tye

Nov 9, 2006

This is actually one of the dumbest articles I have ever read. The auto insurance companies have never said they would physically protect you from a drunk driver. However they would represent you financially. Where did you ever get the idea that they offer physical protection. They aren't god. I do think insurance companies make too much money and profit off of people who rarely use their services. Please get some better logic and examples.

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Shawn Olson

Nov 15, 2006

If you took time to reading the article you would have seen that I am saying that Insurance companies market their services as actual protection without stepping over the line and promising physical protection. Case in point... last week I saw an insurance commercial of diver in a shark cage... his boat blows up and he is sinking (trapped and surrounded by sharks) into the abyss... the commercial then asks something like "are you safe?" Now the commercial did not say "We will save your life" explicitly... but what is the intended emotional response? Of course the insurance companies MARKET their "services" as physical protection to scare the public into a paranoid mindset.



Reread the article and tell me it's still dumb... and I will shake my head and say that you are missing the point. Insurance companies need to see some boycotts and political pressure to straighten up and stop stealing from Americans.

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D Paul

Mar 18, 2009

Brian, you obviously didn't read this "dumb" article very carefully... the author never claimed that insurance companies offer physical protection. He said that insurance companies market their services as a way to protect yourself and your family from whatever 'might' happen, and the suckers that buy insurance interpret the worthless cards they carry as some kind of magical shield of safety.



Insurance companies scare and intimidate us into buying their product. But get in a car accident, or fall off a ladder... and see how much your insurance company protects you when you get the bill.



A better bet is to just save the money you'd spend on insurance in a savings account at your local credit union, cuz then you'll get ALL of it back, plus interest.



INSURANCE IS A SCAM!

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Aisle Nevertell

Nov 2, 2006

I work in the insurance industry. I do IT, thus reaping none of the rewards of the scams.

You're absolutely correct. I've witnessed money-grubbing underhandedness of a daily basis.

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Bob Fisch

Sep 21, 2006

Thanks Shawn While i agree with a lot of what you've said i'm afraid you've under estimated the depth of this much deeper matrix scam. you see the insurence co.s take the profits that they reap from americam workers and invest them in other co.s such as pharmicutical or hospitals them selfs then they jack up the price so that it is inposible for you to pay out of pocket so that you must buy their insurance to survive and when you cant pay then they pas the bill along to medicare or medicaid and get the tax payer to foot additional billing thanks to the polititions they pay to pass bills favoring insurance co.s. See thres realy nothing to this free enterprize stuff if you know the right people Good luck -- Bob

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Bob Marley

Oct 20, 2008

YOU ARE ABSOLUTELY RIGHT! YES, INSURANCE IS THE BIGGEST SCAM THAT HIT PEOPLE RIGHT IN THE FACE, AND MOST PEOPLE DON'T EVEN RECOGNIZE IT! IT'S LIKE GET AN INSURANCE CUZ IF U DON'T, YOU'LL DIE! YOU WON'T BE PROTECTED BY THE DANGERS IN LIFE! INSURANCE ARE GODS! THEY CAN PROTECT YOU FROM EVERYTHING! YES THE FACT OF THE MATTER IS, MOST PEOPLE ARE STUPID ENOUGH TO BELIEVE THAT THEIR INVESTMENT IN INSURANCE IS THE RIGHT THING TO DO AND EVEN A REQUIREMENT IN LIFE! ESPECIALLY AUTO INSURANCE! YOU PAY LIKE $200+ DOLLARS EVERY MONTH FOR THE REST OF YOUR LIFE (AS LONG AS U HAVE A CAR) AND EVEN IF U GOT INTO AN ACCIDENT AND THEY WILL PAY FOR *SOME* OF THE DAMAGES AND WILL EVEN INCREASE THE INSURANCE AT LEAST $100+, EVEN IF IT WASNT YOUR FAULT, THEY DONT GIVE A DAM, ALL THEY WANT IS YOUR MONEY AFTER ALL.



SO IF YOU THINK ABOUT IT, THE BEST BUSINESS TO GET INTO HAS TO BE AUTO INSURANCE, YOU GET ALL THE MONEY YOU WANT, ONLY HAVING TO PAY SOME AND WILL EARN IT BACK ANYWAY WHEN YOU INCREASE THEIR INSURANCE RATES, SO INSURANCE HAS TO BE THE BIGGEST FRAUD IN THE HISTORY OF MANKIND.

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god

Jul 11, 2013

not quite but close ' The biggest scam is freedom it is gone

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Rocky

Feb 18, 2015

Insurance is another form of Gambling. Trust in the LORD with all your heart And do not lean on your own understanding.

Heath is a right, not a privilege. Well in most other countries anyway (Canada, France, Cuba).

Mandatory insurance is proof of a corrupt system. Corporations are people is another. Where will it end?
Regardless of the law, Lead by Example & Refuse to purchase insurance.

Common Cents Revolution /

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