Insurance is just a way to push risks off to others for a fee. It is
important in situations where losses would be total but has moved into a
much less important and underserved role. Spreading the risk of losing a
ship load of goods keeps commerce humming. Insurance companies have now
instead become parasites on modern society. And the huge sums of money
involved attract bottom feeders and lawsuits.
It is important to be financially responsible for your actions and buying
auto insurance helps but at the same token insurance makes that
responsibility seem inconsequential. I am not sure what the answer is but I
do like the idea of no fault and some sort of pay at the pump as advocated
by Tobias.
Health care has gotten very expensive with more and more expensive
medications and routines. Personal action has little bearing on insurance
costs, heavy smokers are not charged more than non smokers. Again the huge
sums of money are attracting bottom feeders. I do not think insurance
companies should be involved in health care at all but rather it should be a
single payer with significantly increased personal responsibility.
I have insurance on my pickup because the state says I have to but I do not
have insurance on the trailer. I have health insurance because my wife has
it through her school. If I did not have insurance my medical costs would
be significantly lower than what insurance premiums would be. I might
carry something like catastrophic insurance just to make sure my relatives
would be spared a financial hit. I do hope that when the time comes I will
not want to go to extraordinary measures to prolong life.