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Politics : A US National Health Care System? -- Ignore unavailable to you. Want to Upgrade?

To: J_F_Shepard who wrote (35988)	4/20/2014 5:34:01 PM
From: i-node	Read Replies (1) \| Respond to of 42652

>> Is that why millions and millions choose low deductibles for health, car, home insurance??? The American People aren't exactly known for making sensible decisions when it comes to finance. I seriously don't know why anyone would have a low deductible for homeowners or car insurance. The entire concept of "insurance" is protection against unmanageable losses. There is nothing unmanageable about a $250 car accident or $1,000 damage to a home.

To: J_F_Shepard who wrote (35988)	4/20/2014 6:50:07 PM
From: Lane3	1 Recommendation Recommended By gamesmistress Respond to of 42652

Who decided that??? Lord love a duck! It makes no sense to buy insurance for oil changes on your car. During underwriting, your premium would be determined by the insurance company to be risk plus overhead, risk being the cost of an oil change times the number of times during the year you change your oil. You'd end up paying the same thing in premiums that you would have paid directly for the oil changes plus a premium for the insurance company's service. You would be throwing money away to buy a policy like that. Makes no sense. For you, that is. The insurance company would love to have that business if you're stupid enough to bite. Is that why millions and millions choose low deductibles for health, car, home insurance??? Or aren't they buying insurance? Low deductible insurance is insurance. You just pay a higher premium for that low deductible, which distributes that cost over time rather than having it hit you all at once. Kind of like power companies that spread your payments evenly over they year rather than you getting small bills in spring and fall and big bills during seasons where you use more power for heat or cooling. It's a way of budgeting for people with cash flow problems. It's not a smart use of your money, however, if you can afford to be smart because you pay that higher premium whether or not you have car wreck. That money is gone. Money in the bank for insurance companies. If, OTOH, you choose a higher deductible you only have to pay that money if you are unlucky enough to have an accident. So, in answer to your question of who decided that, the smart people, because they understand not to play that game, and the insurance companies, who understand underwriting. Insurance companies, though, may not be above taking suckers and the vulnerable for a ride.