Are all kinds of insurances scam?

The fact you need to ask this question means you already know the answer.

Hong Kong, where i live you dont insurance for shit, go reck cars in a pile up and abandon them can just buy a new one tomorrow anyway.

Scams in the sense that, on average, you pay more than you get? Of course, otherwise insurance companies would go out of business. But they are highly profitable.

You can think of it like gambling at a casino. You keep putting in $1 bills into the slot machine so that if it does come up jackpot, you're the one getting a big payout.

Getting insurance is still rational in a lot of cases though. For example when you buy a house, that's a huge leveraged bet on the real estate market that would be insane for most people to make without insurance. It's a once in a lifetime purchase, you're not buying thousands of homes so the average outcome doesn't matter. What matters is you not ending up on the streets with your life's savings burned away.

In china law it will cost you 15k$ a month for life if you run a guy over and he doesn't die.... if he dies flat 100k and job done, traffic accient.

It's not rational. You should only buy a house if you can afford it. Going into debt to buy a house is absolutely idiotic.

Fuck it always triggers me how absolutely moronic people are when it comes to risk management and probability

Chinese drivers make sure the fucker is dead as fuck and run him over and over

less jail time, loss cost, if the guy is flat out dead, vs if the guy is on life support for life.

And yet 20 years later almost all the people who "can't afford" a house now own a house.

It's like they know some weird trick you don't.

What if I told you someone with a little bit of intelligence could postpone that house and 20 years later have enough for 5

Makes you think

>It's not rational. You should only buy a house if you can afford it. Going into debt to buy a house is absolutely idiotic.
That depends a lot on so many things. First of all, you need somewhere to live anyway, so you're either buying or renting.
Typically, minimum payments/paying only on the interest is cheaper than rent. Of course then you are at the mercy of the housing market, but it has probably the best track record of any investment vehicle in terms of stability/safety.
Mortgages are heavily tax incentivized in a lot of countries as well. And they tend to have interest rates below 2%. If I could, I would take out a mortgage-equivalent loan of $200k at 1.5% or whatever and throw the money in index funds, because statistically speaking there's no way you're making less than 1.5% that way so it's basically free money.

You say "just save until you can afford a house" but that's not realistic for most people. Most people barely have any money left over at the end of the month, so they have to use leverage if they are ever going to make enough to retire early.

Here's a good idiot proof breakdown

youtube.com/watch?v=YE9qb1Nhw4A

You know why the jews get so rich? Because people are morons who have no clue how to manage money.

Yes

Only good for tornadoes,flood,tsunamis and other areas where no one wants to live.

ofc, its like lottery, the house always wins

insurance is risk mitigation.

all depends on how exactly large of a risk you think the insurance is covering is

All of them are a scam. It's basically a lottery. You are paying a lot of money for what essentially is a lottery ticket, and your chances of winning this lottery are about as slim as winning an actual lottery.
The difference between a normal lottery ticket and an insurance is that when you win a lottery, you get loads of money, while winning the insurance lottery just means getting enough money to pay for the thing that broke or got stolen.

Look at it this way. The insurance business is extremely profitable, it's a trillion dollar industry run by some of the richest people alive. They're making a profit, and that means that on average the person who is paying for insurance is getting less money than the average paid into the system.
Imagine 100 people paying a guy 1 dollar each. This guy then gives back 50 dollars to 5-10 of the guys. This means that on average if you gave this guy a dollar, it means you on average lost 50 cents.

The whole ''b-but what if I don't have insurance and something happens'' mindset is a fallacy. In your lifetime you are going to pay more for insurance than you would ever get out of it if something actually happened to you, your house or your car. Unless you're a fucking idiot, you are never going to burn down your house, get in a car crash, fall and break both of your legs etc. Save the money and avoid dangerous situations.
Even if you're some kind of a racer who is at a high risk of getting hurt, you shouldn't get insurance because all they do is bump up the cost of insurance.

The insurance will never mitigate enough risk relative to the cost, otherwise insurance companies would go broke.

Instead of throwing all that insurance money away you're better off investing it in something that produces actual value and on average you'll end up much much much better than some poor idiot who gave the money to the insurance jews. Even if you are unfortunate enough to get hit by a catastrophe.

Implying I'll get a job

But importing with niggers is the case example where theft insurance would pay off.

It's paying for theft insurance in an all-white/asian neighborhood where it doesn't make sense

Don't you think you're biased a little, on account of hating mainland chinks?

this is my argument: that insurance company owners also support mass immigration

Not just a lottery but a REQUIRED lottery that if you win they do everything they can to fuck you out of winning.

Every home owner on top of the LITERAL MOUNTAIN I live on requires flood insurance of all things. Why? Because fuck you that's why.

I've seen this video many times. I love Shkreli but he's being dumb here. What he's saying has no bearing on what the average person should do, because he doesn't even say the word "rent" in this video. Yeah sure, investing in the market would be better than investing in real estate, but you'd be homeless if you did.

Not all insurances are required. There are people who will go out of their way to insure things that they don't have to. People will give their money away for nothing.
Some fags buy a dog for 500 dollars and then they buy insurance for the dog. It's money down the drain with you getting nothing in return.

Are you sure you did? Because he outright states for the average person renting is always better than buying.

Real estate is a rich mans game.

>Not all insurances are required.

Come to the USA

What he's saying is that real estate doesn't make sense purely from an investment perspective for the average person.
But then he makes a huge leap of logic to "just rent instead" without even comparing the cost of a mortgage to the cost of rent.
He also uses a 6% mortgage interests rate, which is ridiculous. Where I live it's effectively 1.5% or so after you account for tax benefits.

I only have health insurance because im a mall guard and drive around beaners.

But that's not even the main issue. Let's take the "place to live" thing out of the equation because you can rent to live.

The issue is you taking 80-90% of your net worth and putting it on what basically amounts to a gamble that real estate prices will go up.

Whereas another guy who's smart will rent a place and use his money to diversify into all sorts of investments.

At the end of the day both have a place to live, but one is much more likely to go broke than another.

Depends. I have what i refer to as gangster insurance. They dont pay me, they dont pay them and they keep the cops off my back.

Then there is companies like fleet responce. A kid at a tire shop fucked up the jack spot on my car. They had it fixed and the only reason you can tell it happened is because the paint is so new.

Most insurance companies goal is not to pay. Deny claim unless absolutely certain they absolutely have to. Its a bit of a racket nowadays. Goodies and badies.

>another guy who's smart will rent a place and use his money to diversify into all sorts of investments

you understand that rent is more expensive per month than a mortgage right?

I'm done trying to educate you retards.

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You mean mortgage a house.

Posts pictures of jews digging through garbage cans, then says they are rich.

I pay $500 to rent this apartment
There's a twin to this place that's for sale for $49k
The mortgage for that would be around $250 a month
hence why landlords make money

Does a dollar today have the same value as a dollar tomorrow?

I'll let you ponder this and maybe you'll figure something out on your own

I understand that I wish my dad would have bought an apartment 5 years and had me pay him the rent
The 30k or so that I've paid has just completely disappeared and I have nothing to show for it

With the exception of health insurance, no. Home, auto, business, and life insurance serve valuable purposes and fill critical needs for anyone who has anything to lose. Anyone who disagrees has nothing to lose and therefore you shouldn't take their advice on anything.

Health insurance is not a scam, but it is obsolete as a private market solution. The public sector can probably do a much better job in the private sector on that one.

Insurance is this.

There are 100 people with $1000. Every month 1 of the 100 will get in an accident that'd cost $500. This would ruin most people. So to avoid that, each person pays $10 a month to one person, who agrees to pay for any accidents but also nets $500 a month in return. Is that a scam?

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>But that's not even the main issue. Let's take the "place to live" thing out of the equation because you can rent to live.
Yeah let's just remove the biggest expenditure in most people's budget, pretend it doesn't exist.

>The issue is you taking 80-90% of your net worth and putting it on what basically amounts to a gamble that real estate prices will go up.
No, you're viewing this completely wrong.

Let's say I earn $5 a month. I spend $2k on either rent or a mortgage. I spend $1k on myself, groceries, etc. I invest the remaining $2k in stocks and bonds.

In the rent scenario, I have $2k invested in stocks and bonds.
In the buy scenario, I have $2k invested in stocks and bonds, AND $2k invested in real estate.

Yes the real estate investment is heavily leveraged, but that's only a bad thing if you're losing money. If your investment pays off, leverage is an extremely good thing. And real estate is many more times likely to raise than fall based on historical data. Of course that doesn't mean it will only rise in the future, but if you had to bet on it going either one way or the other...

If you're financially illiterate: no
If you understand things like portfolio management, risk management, expected value, expected growth: yes

You're not actually gaining more "dollars today" by renting which is what you are refusing to acknowledge. In fact the way to maximize "dollars today" is by taking out a HUGE FUCKING LOAN RIGHT NOW, also known as a mortgage.

So much this. Even collision insurance on an old clunker car is worth it.

Yes borrowing to bet it all on red is heavily leveraged, but that's only a bad thing if you're going to lose. If your gamble pays off, leverage is an extremely good thing.

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Based on historical data, it rained yesterday and the day before that. That must mean it's going to rain tomorrow too.

More likely to make them poor.

THE MONEY IS GONE ANYWAY.
YOU WOULD RATHER BET IT ON BLACK THAN SET IT ON FIRE.

The worst that can happen to you is that you stop paying the mortgage and they confiscate the house. Now you are exactly where you would have been if you rented.

You know why ppl hate on obamacare (ACA)? Because if ur a healthy man who goes to the gym you will put into a 'pool' based on your LOCATION IN USA with some redneck 300lb with 5 kids who has diabetus and guess what? you will pay the premium each month for it >:)

Trump and his croanies arent bad people, they are trying to make americans responsible for doing retarded dumb shit u see on worldstar

the obama years turned this country into faggotloving basedboys

Most people in that position only carry liability. It basically fixes the other guy's car thus shielding you from a lawsuit.

You cuck should ask yourself why healthcare is 10 times as expensive in the US as in other countries. I have full coverage for 80 bucks a month and the insurance companies are still turning a profit (hint: Drumpf and his masters are making bank off of your stupidity).

Every insurance is like that. Young people pay the most for insurance for being a "risk" but their rates are calculated by the people with the biggest risk (literal old people) who pay the least.

You have a nice house and some land, gotta pay in to cover the trailer park down the road that catches fire every week.

And again in my area, the guy at the top of the mountain has to pay in to cover the guy at the bottom of the mountain.

PAY DEBTS GERMANY

Is the roughly $80K down payment used to get a mortgage (for $2K/mo) better off in other investments while you rent? Why did you leave out the initial investment/down payment?

Go to the dentist Cleetus.

Oh wait that would probably bankrupt you...

>Thick
You're a prime example of a rural Canadian retard

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Owning can be much cheaper than renting if you have the money up front.

I only pay about 600 a month everything included for my condo.

Renting the same condo costs just under 1200 a month. Similar sized homes with utilities would be closer to 1400-1600 depending on the weather that time of year.

I worked my ass off for almost 5 years straight starting freshman year. Had no life at all and basically just worked and went to school. Now my cost of living is like a quarter of all my friends.

>Does not factor in relatively higher cost of people's time, in real countries.

They're leaving out homeowners insurance, taxes, the usual maintenance stuff, garbage and sewer and any HMA or city mandates for land upkeep.

Anybody can compare a mortgage to rent but comparing homeownership to rent is a whole other deal

No more words. Just pay debts.

If I was renting I would be having a rough time and most of my money would go to housing

Owning I can work 2 day weeks and still be alright.

Then add my girl and it gets cut in half again.

I highly recommend buying over renting. You figure if it wasn’t worth it people wouldn’t but places to rent out. Of course it’s cheaper.

The interest of the (((Insurance))) and the customer is as opposed as can be. Before health Insurance the Dutch state had universal funds appropiated with tax to do that stuff. No problems arose as the Dutch State and the consumers both want to be healthy. for different reasons, (((employment))) and happiness respectively but still.
I hope you filthy id- fine Jow Forums users* learned something.

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>Cleetus thinks we owe his shithole country money.

Lay off the moonshine buddy.

>Is the roughly $80K down payment used to get a mortgage (for $2K/mo) better off in other investments while you rent?
In most cases, yes.

Sure, those need to be factored in as well. But they add up to be at worst on par with rent.

My main point is that you can't simply compare investing in real estate to investing in the stock market/a diversified portfolio and say "real estate is the worse investment, therefore no one should buy a home". Ignoring the utility value of having a place to live is a much bigger crime than ignoring insurance and taxes.

In Norway, mortgages are so tax incentivized, and capital gains from stocks are so dis-incentivized, that it's very hard to come out ahead of buying the most expensive house you can fool the bank into lending you money for. I think in America it's a lot closer between buying and renting, to the point where you have to judge it on a case by case basis, or maybe a state by state basis?