In the following article you will find out more information about why insurance is so expensive in US
Insurance is a contract where you agree to pay money and the company agrees to pay if the item or the person that is secured suffers any damage, in a certain period of time. In simple words, you are paying just In case something bad happens, to have it covered.
The first company in the United States was formed in 1792. Firstly people were pessimistic about this project, and thought that this is only a lie so they would not want to pay even the cheapest price to secure their lives. However, as the time passed by, more and more people started to use the insurance and because of that reason, we are living in a time where the insurance is maybe more expensive that the damage that could happen to the item or property that we are securing.
Generally if you do not live in United States you will have a decent price on insurance that you can afford and that will mean nothing to you if you pay it. But for the people who live in the United States, they are simply being robbed with the insurance and with the taxes. Yea it is a robbery. I mean if you are securing yourself, what can you do, it is your life so any price is worthy paying, but what about cars and property? For a year they take quite a lot of money, so if you are paying insurance every year, you will spend more money that the actual damage that may happen to your car, to take for an example.
Why is the insurance so expensive? Well, the answer is simple, they see that more and more people tend to use it as a security, so they can’t lose any customers, they can only get more money. Let’s be honest, from 10 people they will probably pay damage for only 1. Sometimes they will pay for more, but sometimes they will pay for less, however the percentage remains the same. In fact the chances are only 10 % that the company will need to pay to a person that pays them to be secure. With this result, what are the needs to make such a big prices for the insurance? I don’t get it. I guess that if they reduce the price, every person will use insurance and there will be more chance that damage or a loss can happen. But looking on the other side, they will make more money.
All in all insurance is really helpful, but the companies are getting quite greedy. This is really bad and is а big issue; because the world is in big economy crisis and they can’t lose any more money. The taxes are already cutting enough of our wages. We just hope that the United States insurance companies will cut down the unreal charges.