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Thread: Insurance... is a bet

  
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    Deano_Sxi's Avatar
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    Insurance... is a bet

    A guy at work today told me this...

    "Insurance is a bet, you are betting money to your insurance company that you are going to crash... your insurance is betting that you are not going to crash... think about it, if you do crash, then you win (the insurance pays out) but if you don't crash, then the insurance wins (you have payed them for a year)

    At first i thought "what the heck are you on about you crazy man" but i suppose it IS actually, kinda true

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    Andy's Avatar
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    insurance is - the law, you have to have it and would be stupid not too,

    imo anyway, same as any insurance, home/life/car be silly not to have it imo
    Drives - 08 Astra SRi XP 1.9CDTi 150

    Beer is living proof that God loves us and wants us to be happy.

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    domino's Avatar
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    Quote Originally Posted by Deano_Sxi View Post
    A guy at work today told me this...

    "Insurance is a bet, you are betting money to your insurance company that you are going to crash... your insurance is betting that you are not going to crash... think about it, if you do crash, then you win (the insurance pays out) but if you don't crash, then the insurance wins (you have payed them for a year)

    At first i thought "what the heck are you on about you crazy man" but i suppose it IS actually, kinda true
    It's a very good way of looking at it - because in a way you are right yeah

    If it's a bet... then it's gambling... and unless we do that on licensed premises, we're breaking the law... so, strictly speaking, if we pay for insurance, we're breaking the law!

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    astracolli's Avatar
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    hmm if you do crash you win? you get the wonga yeah, but the increase in premium means you lose lol and you lose you car youve probs spent shed loads on lol

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    I see where you're coming from, but I see it as lose/lose. If you crash, you have a messed up car (especially if you're TPFT), and as a result higher premiums.

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    Yes, its bet, Your insured incase shit happens.

    lol Just surprised you only noticed it was a gamble now. Insurance company gamble the fact that most people don't have accidents.

    So if I told the first 10 people that came to me I'd insure them for £400 and no one crashed I'm up 4k. If they do crash i'm down a lot.

    So its more of a gamble for the insurance company than us.

    As if we crash we could force them to pay out more than we paid them.
    Quote Originally Posted by DaveDempsey View Post
    Hey atleast MOTing your car should be a lot simpler than MOTing your EX. Replacing a worn out bush on a car is far easier.



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    holbrob's Avatar
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    Pretty shit odds on that bet!! Stake £500, odds 1:1 you will either crash or you won't!! Payout £500!!

    Not much of a financial incentive?

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    IIvIIitch's Avatar
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    No guarantee the insurance will even pay out in the even of an accident.

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    Quote Originally Posted by joemailey View Post
    Yes, its bet, Your insured incase shit happens.

    lol Just surprised you only noticed it was a gamble now. Insurance company gamble the fact that most people don't have accidents.

    So if I told the first 10 people that came to me I'd insure them for £400 and no one crashed I'm up 4k. If they do crash i'm down a lot.

    So its more of a gamble for the insurance company than us.

    As if we crash we could force them to pay out more than we paid them.
    Actualy it's a bigger gamble than that for the insurance companies!.....They usually pay out more than the take in premiums.

    They make their money by investing the premium money on the money market to make a profit.

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