Insurance is a scam?

Why would we need it to be a law? Insurance is in case something happens, well what if nothing ever happens, all that money goes straight into their pockets. If it's law, they should make a new law where, after a certain number of years that you never got in an accident you get your money back. The main reason a hit and run occurs is, jail, or they don't have insurance. You would solve half the problem!

I read in the DMV booklet that you can show proof that you have $35,000 in an account, and you wouldn't have to pay insurance, does anybody do this?

I believe it is often a scam. Insurance companies are greedy.

For an example of how it could improve, take a look at ICBC (Insurance Corporation of British Columbia). Auto insurance in BC is operated by the province.

And please do not rag about socialism. Certain things should be taken away from private corporations if they become too abusive. Insurance is becoming too abusive.

We could also go into health insurance here as well --- but let's save that one for later.

It's a law because it used to be voluntary but the only people who didn't have it were people who couldn't afford to pay. Insurance laws vary from state to state. It makes sense that you should have auto insurance if you're going to be driving.

The idea of insurance is to mitigate risk. If you got the money back that would distort the risk pool and cost more for everyone else.

7% of my yearly income goes to paying insurance on two cars worth less that $2000. I wish I had $35k. Mitigating risk is a luxury. We should have a public system we can pay into to opt out of insurance that only pays out actual damages and issues a refund...rather than making a profit off of us.

Mandatory insurance laws are meant to protect the public from uninsured drivers. If an uninsured driver hits you and can't afford to pay for the damage, you would get nothing. Did you ever stop and think about how much accidents can cost? If there are serious injuries, settlement payments can run into the millions. Where would you get it from if you didn't have insurance? Let them garnish your wages for the rest of your life and go on welfare? People have had to do this, and it causes problems for everyone else.

In California you can deposit $35000 with the DMV instead. They figure that if you can afford to do this, you should be rich enough to pay for any accidents. But having put up this bond doesn't exempt you from paying for accidents you cause, even if the cost is higher than the value of the bond.

I don't believe you have to have $35,000 in the bank...just be able to come up with it. If you have the assets. This is basically a type of bond insurance.

Most everything that people sell is a scam.

Insurance on vehicles is a law...so get the best deal.

Cheaper isn't always better. If you ever get sued you might need more insurance or a good lawyer.

Answer: yes!