Is insurance the root cause of high prices?

Question

Heathcare, auto, home, un-empolyment, workmans comp, and mal-pratice

Answer 1

Insurance cost are directly related to claims paid. Things I've seen:

Policy holder who wanted $8000 to repair $600 copula that fell off the top of a falling down garage.

$5000 auto claim for Mercedes due to 5 MPH bump against concrete wall (which wasn't even scratched).

Every day I check this board and there's someone posting a question about an expensive home repair and wants to know if their homeowners insurance will cover it. It's not a maintenance policy people.

Numerous families tell me they're in perfect health who take $300 a month in prescription meds (Ritalin. paxil, Viagra ..)

I'm only scratching the surface. Why does family health coverage run $1000 / month? Because people run to the doctor for everything. Are you shy? Anxious? Can't sleep? Can't wake up? Have cloudy toenails? Restless Legs? RUN RUN to the doctor and get a prescription cure. Then wonder why everything is so expensive.

And blame the insurance companies.

Answer 2

Unfortunately, claims are paid based off of state law and court cases. Frivolous lawsuits are what has raised prices in the insurance industry unfortunately. A woman burned herself and a court awarded money, an insurance company did not willingly pay out that claim.

Health care costs are sky rocketing and thus making health insurance more expensive. I am not sure how insurance causes ANY kind of unemployment so a big no there. Workers Compensation costs have risen once again due to health care costs. Autos have increased in price because people are willing to pay the larger prices for the same vehicle, as well as increases in costs of raw materials. Homes are more expensive because it has been a sellers market for the last 5 years or more.

Research a bit before you throw out a generalized question like this again please.

Answer 3

Um, no.

For healthcare, it's cost of care. If you divided the total amount spent on healthcare in the US, by the number of PEOPLE in the US, it's slightly over $7,000 PER PERSON. Plus, here in the US, we're just not taking care of ourselves (reading statistics that 30% of americans are overweight).

For Auto, it's careless driving (although roughly 30% of all payouts are for fradulent claims.)

For Home, it's a combination of high liability claims (mostly dog bites and trampolines), and really bad weather.

For unemployment, well, there isn't private insurance to cover that.

For workers comp, I think that might be fraud, and medical costs.

For malpractice, it's a combination of lack of accountability (after all, you have no way of knowing if YOUR doc has had a thousand claims!), and extreme "punative damage" awards.

Answer 4

its insurance claims that make insurance expensive

for example - burning yourself on a hot cup off coffee bought from a fast food place

its crazy claims like this , which incidently get paid out ( when did the lunatics take over the asylum ??) but cheaper to pay out than go to court
that make it so expensive

all the best
Ian