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Originally Posted by rennlistuser3
yeah true, it's just that I have a feeling the numbers are higher than they need be. I mean I believe it was tirerack that gave free road hazard insurance on any tires you purchase from them. So they make their profit off selling the tires and don't need to resort to making money off natural hazards.
This is a philosophical topic and it will go way off topic but for me personally (and I might as well be wrong about this) I feel it is wrong to profit from other people's misfortune. Car accidents are a misfortune and it should be seen as an opportunity to make money. Same goes for medicine. There is something morally wrong to try and turn a fat profit from a human dying from a disease and has no other option but to pay up the asking price. Buying a car from a dealer or a phone from an electronics shop is a different matter. You buy it by choice and not necessarily need. But anyway, this is a very long topic...
I did a rough estimate for the cost of my car's ownership for say around 8 years not including gas or car insurance. It rounds up to around 200$/month. This is a rough estimate and I might be off by say 100$/month but it does generally give an idea of how expensive insurance can be relative to a car's worth. Maybe I should get a more expensive car to offset this lose.
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I have paid over 1/2 a million in insurance over the decades. I have made one claim for $2000. Yes it is expensive but it is a lot cheaper than if you are in an accident and have to replace your car. God help if you hurt or kill somebody since that $500,000 over 40 years all of a sudden looks like a great investment.
The Tire racks sells tires. The insurance company sells insurance. There is no comparing the two.
It is an economics and capitalism topic. There is nothing philosophical about business. Insurances costs so much because they have to pay out and still make a profit. The more profit the better. Look at it at a closer personal level. Would you walk up to your employer and say "I only need $50 a day to get by so that is all you need to pay me"? No, you want to turn a profit on your labour just as they do.
Know this reads like I am lecturing but my point is simply there is no sense getting upset at insurance companies. They are just a business like any other. The good news is that as you get older your insurance goes down!