The Insurance Industry
giving you the business . . .

T   
he concept of insurance is the vector analog of the Ponzi scheme. Instead of the pyramid structure which relies on an ever increasing number of suckers joining in at the bottom level, we have the big circle jerk where money is passed around and around (with a SMALL administrative cost being deducted on each revolution).

What I mean to say is that absolutely no net physical good is accomplished at the level of civilization as a whole. Anyone might argue that some good accrues to individuals but such good as may come to them is more than equally deducted from the collective good.
The inherent stupidity of insurance is best revealed by observing of what it accomplishes in specific cases.

The Florida Hurricane

You probably witnessed on TV the devastation caused by the hurricane a couple of years ago in Homestead, FL. All the houses were destroyed and all the contents of those houses were lost and everyone lost their jobs and they still haven't recovered. But they had insurance. They felt good as homeowners (that they were protected).

Comes the wind < ) . . . There goes your roof . . . < ) There goes your neighbors roof . . . < ) Here comes your other neighbors roof slamming into your car which prviously had gone . . . < ) slamming into another neighbors car . . . < ) house . . . < ) boat . . . < ) whatever . . .
Here comes the rain . . . ruining everything you own . . . which has by now been transformed into 'kite' . . . and the next day they're wandering around thanking God for their good fortune (in that they hadn't been killed) . . . and asking for a telephone so they can call their insurance guy whose house was also blown away.

These are the same people who went to church on Sunday, professed their eternal belief in and love of the Deity, and then stopped off at the 7-11 to buy TWO !? or more lottery tickets.


I have to inquire . . .

"How much ($) did they spend on insurance over the years and how much did they spend on actual physical insurance", (the palliative as opposed to the prophylactic).

Quick Lesson

How to keep your roof and car in place
in a 160 mph breeze for under a hundred bucks

  1. Attach eye-bolts to foundation
  2. Clip on cable
  3. Toss over house
  4. Attach to tightener which you've attached to other eye-bolt

    For car . . .

  5. Take lug nuts off two diagonal car wheels
  6. Attach cable to wheel and eye-bolt in driveway
  7. Go in house and wait for storm to pass
That's the quick way. You could get more elaborate if you like.
The point is that for a couple of bucks and about 15 minutes work prior to the storm, the entire catastrophe could have been as much as 90% averted.

It wasn't.

The cause can be laid at the doorstep of the very concept of insurance. It is a defective idea, at least as presently understood. An insurance company is there to make money not to save you from disaster.
They want high rates, not low rates. The rake off is higher with higher rates and there is more latitude for the inevitable kickback. You're not in good hands with all state. You're in good hands when you are in your own hands and when you are thinking about defending yourself against eventualities you'd probably not like to consider . . . but you must.

If you think I'm wrong and that your insurance agent has your best interests at heart . . . read on.......

The Texas Circle Jerk - state sponsored fraud . . .

This circle jerk involves the judicial system, lawyers, auto-insurance companies and the gullible public (the ones with TWO!? lotto tickets).

This is how it works:
The state mandates auto insurance for everyone (not collision insurance but rather "liability" insurance). No choice is extended to the driver. Pay for this insurance from a private company or you are not allowed to drive.
This liability insurance covers damage to the other persons vehicle (!?) as well as to people injuries. Now any fool can see that if everyone has to cover everyone else's vehicle, it's logically equivalent to mandating collision insurance for every driver. And if all else was fair (which it isn't) each individual would pay this defacto collision insurance on a hypothetical vehicle of "average value", say, 6-7,000 dollars (?). This means, if you drive a clunker worth $1,000 you are subsidizing the insurance on other people's more expensive cars. This is a boon to the upper and middle class (but only apparently) so they will vote for it till hell freezes over.

Let's say you're about 24 years old. You have two small kids and a wife who works part time (because you can't make ends meet) and she needs to drive. So you have two cars. You had a few tickets as a teenager and maybe a fender bender. You work at one of those menial jobs that pays about 8 bucks an hour (of which there are millions) and your wife works at the corner deli part time for $5/ hr.
Your combined income (not including forms of welfare which you will undoubtedly need) probably won't exceed $16,000 net.

What will you be mandated to pay for insurance?

Plan on about 2-3,000 dollars minumum. That's maybe 10-20% of your NET INCOME for CAR INSURANCE ??????????????????????
Of course, these people can't possibly pay such an exorbitant sum. So there is a cottage industry devoted to the distribution of fake but necessary papers. And everybody knows it. And the percentage of the load carried by those who do pay just increases every day.

Who's to blame?

Well, let's see who gets what out of it. Then you decide.
The average guy thinks he'll pay less for full coverage (initially) and also harbors a secret hope that he will be involved in a non-fatal accident which generates a windfall. Every day lawyers are getting you every penny you deserve (millions for knee bruises, etc.).
[In the insurance industry, the sum of the parts does not equal the whole. Your broken leg is worth more than your life, that is, more than you could ever hope to make in a lifetime.]
The lawyer gets an enormous cut of those windfalls which potentially amount to thousands of dollars per hour. That's why there are so many lawyers. It's horrifically lucrative.
The insurance agents and their companies rake off incredible sums as well. True, they have to pay out the windfalls. But this is an advertising cost that keeps people willing to accept the "lotto" (just as getting caught in the illegal drug trade is the negative that keeps the price of drugs high).
The judicial system gets criminals. Anybody who doesn't pay the insurance lotto is a criminal and judges and police need easy criminals who can't run away in order to look good on the job. After all, somebody's got to go to jail and if not OJ , who?
The politicians get their kickbacks. Huge ones from the insurance companies. (We don't believe it, do we? ; )


Is ther a better way ?. . .

You better believe it. But the theory underlying it involves something called volitional vs. non-volitional culpability.

The actual solution is:
When you get your license to drive, you accept the following reality.
Accidents occur. Nothing you can think, do or say will alter that fact. Police will try to apprehend drunk drivers, speeders, etc. and you will try to drive safely in order to reduce the risk. But you may still get in an accident. You will not be hit by someone intentionally. They may be driving safely or negligently but they're not aiming at you. If you get hit . . . that's all there is. Suffer, die, go home without a car, whatever, but there is to be no lawsuit, no lawyer, no appeal. You will receive no cash settlement.
This is the true meaning of no fault.

Too harsh for you?

Then, buy some INSURANCE . . . for . . . !!! YOURSELF !!!
That's right. Just for you, the occupants of your car and your car itself if you want to lay out that kind of cash. Now, when you're wrecked, your insurance company pays you a check for whatever the agreed upon amount is. If you want insurance for pain and suffering as well, be prepared for some whopping monthly installments. (No one could afford it since they wouldn't be able to go to the defacto "public trough" anymore). You decide what sort of coverage to purchase and if you can't afford any you just takes your chances.

But who will pay for those who are hurt and have no insurance?
The real public trough. The burden every working man carries every day. They do so because, come what may, honorable men don't watch other people in their community die and do nothing at all. They're stuck with some sort of public trough no matter how you cut up the pie. It has always been that way and always will be. The difference here is that it will decrease to the lowest possible level which is in fact tolerable. After all, we're presently tolerating far, far worse.

The rakeoff in this particular insurance scam is comparable to that of narcotics traffic. After all, both are government sponsored, mandated and underwritten. If you get $1,000 extra from 10,000,000 drivers that's a 10 Billion dollar industry in Texas alone.
But maybe you don't think that insurance is all that bad. I think lots of people like the insurance buisness . . . like . . .

the people of south Florida . . .



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