Insurance is Really Complicated
Are You Insured? Really? You buy insurance because you think something bad is going to happen to your car. It could be a fire. It could be an accident. It might even be that someone likes your car so much they steal it. Your insurance policy is designed to protect you against financial loss should any of this happen. The insurance company is betting that none of the above will happen to your car. They only make money if everything goes very well with your car. They’ve created some very sophisticated mathematical models that allow them to predict the chances of something bad happening to you car. The insurance company is making a very sophisticated bet that your car is going to be just fine. The whole principle behind the insurance industry is to sell you something you may never use. Insurance companies make ...