I think most insurnace companies make stupid decisions, or at least several of the ones with which I’ve had the pleasure of dealing, did.
Instance #1: We backed into a mailbox in a driveway at a house we were looking to buy. The mailbox repairs were $600 as it was one of those brick mailboxes seen in nicer neighborhoods. The repairs to my car were also about $600. Our deductible was $500, so literally the insurance company was out about $700 total. Our premiums were $150/month for both cars, so $75 or so per month for my car. We had been with them for about 10 years. Not only did we have to pay our part first, we also asked them if it would be better if we just paid for all the damage and didn’t file a claim. They said it wouldn’t raise our rates. They LIED. They raised our rates nearly $200 per 6 months, or $400 per year. For a mailbox! What the heck would they have done if we had crashed into a 7 series BMW? This was 3 years ago. Our rates still haven’t gone back down. We have never had another claim, and we have no tickets or accidents.
(2) Medical insurance picks and chooses what they will and won’t pay for, which I understand. But, when a family of five never meets their $450 deductible per person, yet they deny oral contraceptives for a family member, I cry Uncle. WTH? I guess they feel like the ensuing infant, maternal care, and everything else is cheaper than $40 a month prevention. This is one of the many reasons the healthcare system in the US is screwed up! We pay nearly $4,000 per year for health insurance coverage. We then pay up to $2,250 for deductibles, which we never meet. I’ll take that bet. Please deposit $6,250 in my account, and I’ll do nothing except deny your claims on that money. All this while I sit here and see people who pay nothing have their kids treated for free all the time. A girl who works with me takes her infant to the doctor. She forks over $125 per visit, while she stands next to others who pay $0. Why? Because they don’t have insurance, so it’s free.
So, here’s the deal. Just don’t work when your kids are little. Get them on Mediciad or whatever your state offers. Then, when they get too old, you can work for a bit. Then, you can draw Social Security for the 10 years you worked, mooching off those of us who worked for 50 years. And, you get Medicare to boot. What a deal!