Are You Getting the Most Out of Your Insurance?
Posted on | November 19, 2008 | 5 Comments
Please use Subprime Blogger to get your information on Bank of America mortgage rates. Rates are near all time lows, so now is the time to educate yourself.
robability theory is what insurance companies use to price their insurance policies. What probability theory states is that the probability of an event to occur is defined as number of cases favored for the event over the total number of outcomes possible. Insurance companies do their best to make sure that each policy has independence so they will reduce their risk. The likelihood of one car crash causing several thousand car crashes is extremely small which encourages insurance companies to insure as many individuals as possible independently.
The question that one most pose is “are you getting the most out of your insurance?” Personally, my medical insurance company is making a killing off me as I am a healthy young adult; 8% bodyfat with no health issues. I am extremely far from the regression line for medical insurance as I have one doctor visit a year which never costs my insurance company over $200 while they receive over $50 a paycheck from me. That being said, I will never go without health insurance as I would be risking my life if something unforeseen were to happen.
While my medical insurance company is making out, my auto insurance company hates me. Recently I had my car broken into which ended up costing over $4000 to fix. Obviously this was not my fault and it actually happened in a low risk area so my insurance company has no grounds to increase my rates. It will take over 5 years of me paying insurance to pay them back for that one claim. Ultimately I am a good driver as I have not had a ticket in four years and have only had one major accident when I was 16.
Once again, my question to you is, “are you getting the most out of your insurance?” Are you the driver that speeds all the time, has several accidents and raises my insurance rates or are you the good driver that is losing money by paying car insurance? Are you the smoker with several health issues that has over 15 presciptions per month or are you the healthy adult who is paying for the previous individuals unhealthy activities?
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5 Responses to “Are You Getting the Most Out of Your Insurance?”
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November 19th, 2008 @ 7:38 pm
What’s amazing is that with fewer cars on the road, auto insurance companies are still raising rates!
November 19th, 2008 @ 8:03 pm
[...] the rest of this great post here [...]
November 20th, 2008 @ 12:24 pm
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January 27th, 2009 @ 11:18 pm
There is obviously a lot to know about auto insurance rate comparison. I think you made some good points in
January 30th, 2009 @ 3:17 am
Are You Getting the Most Out of Your Insurance? made some good points. I did a search on car company insurance rate and found most people agree with your blog.