Dr. Martin Hash Podcast

The odd thing about insurance is that nobody ever wants to collect, they just want to have it. Unfortunately, there’s the moral hazard of insurance where people act irresponsible because they are insured, or even cause intentionally damage so they collect on the insurance. There’s also the perverse incentive of fault-based insurance, somebody else can trigger your insurance to pay them: intentionally harming themselves or pretending since pain is subjective. This is the way people without insurance get rich from your insurance. That’s why a dozen states have No Fault insurance, which means if someone else hits you with their car, it doesn't matter, your insurance covers you and their insurance covers them: no lawsuits, no Civil court, no worrying if they’re insured, no paying for Uninsured motorist. The only lawyers will be Criminal lawyers determining whether laws were broken. However, insurance only really works if everybody is insured. If half the drivers drive without insurance, even if they suffer the consequences financially, they aren’t included in the insurance pool so your premiums will have to be increased to cover the additional risk. Combine that with all the hanger-on industries that exploit insurance, and soon, like medical insurance, it becomes unreasonably priced for the amount of security it provides. Insurance deserves the poor reputation it has, no fault of your own.