Why are insurances so different?

  • by Chris
  • Jul 15,2016
  • 7 answers

So you have health insurance which covers basically everything you could need for a monthly premium plus a copay...and you can easily get rid of your deductible by doing doctor visits or going to the ER when you are ill outside of office hours...so basically health insurance covers the maintenance of your body...you even get lower premiums and such when you join a gym or quit smoking...then you have automobile insurance which charges you similar prices to health insurance but doesn't cover tires, oil, gasoline, air filters, etc...all of the things that are basic car maintenance and they charge you a 500 dollar deductible before they cover the cost of any repair...house insurance is similar too...charges you alot of money but only covers the big things (robbery, fire, flood, tree damage, etc...)...my question is, why isn't there a company that covers similar things acrossed the board...cover tires, oil, filters, etc for vehicles and paint, yard tools, carpet, electrical repairs, etc on houses...basically cover the small things like health insurance does...it seems to me like you get really ripped off on car insurance and house insurance...the paperwork could be set up the same way as a doctor or hospital too, just the patient would be the vehicle or home...any thoughts?


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Insurance Answers (7)

amy lynn 6 months ago

Insurance is all about making money. Home and auto insurance companies make money by insuring as many people as they can and hoping that only a few need to make a claim. By insuring for only accidents, that is a sure way to help make sure that is exacly what happens.
Health insurance is similar in that insurance companies will try to insure as many people as possible so that the "young and healthy" people who don't use insurance are helping the insurance companies pay for the older people who do have health issues and use insurance.
An insurance policy based on MAINTENANCE CARE for homes and cars would go bankrupt in a very short time because there would be far too many claims on the policies. With other insurance plans there are "good drivers" or "healthy people" paying premiums and then not using the policy. Everyone with a "maintenance" policy would be using it to cover all their basic needs.
Basically, there is just no way to make that kind of policy affordable to the consumer and profitable to the insurance company.

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Flower 6 months ago

Health insurance NEVER covers you 100% for all your bills. You can reduce your deductible by paying out of pocket but your monthly premium does not count toward the deductible. After you have met that annual deductible, you still pay 20-30% of the cost.
You dont lower your premiums on health insurance if you quit smoking or use a gym. If you have done that before you sign up for a policy then you may have a lower premium.
There are many kinds of insurance you have not covered. They cannot be lumped together because too many factors go into deciding the premiums and your eligibility.

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lucy 6 months ago

I am "guessing" your health insurance is through your employer who most likely is paying about 70% of your premium and you have a low deductible, like $500 or $1,000.
I am old and paying almost $600 per month for health insurance and it has a $6,500 deductible. I don't have co-pays, but get the "reduced" rate that they have agreed with my insurance to pay. But, I don't want to spend over $6,000 this year, so that insurance pays for all those maintence health issues, (unless) I need them. I have never been to the ER, since to walk in, could end up with a bill for thousands of dollars and 1 time 10 years ago went to the urgent care and paid $250.
But, even though expensive, can't take the chance of getting cancer, heart attack or stroke, that will be paid for by my insurance (after) I pay all medical bills under my high deductible.
Like poster Zarnev stated, there is no transparency in medical care. When you go to a doctor and they order tests/labs etc, you have no clue how much it costs, till they send you a bill. You can't google and compare prices for the best deal like tires etc. Also, it depends on the insurance company you have to pay more or less than another patient who has the exact same tests done.
Years ago had some blood tests done and was charged $400. Last year, doctor wanted new updated labs and explained that I did not want to spend $400, so she sent me to the hospital that ran the same test for $60, but was cash only and they do not bill insurance.
Or with RX, it depends on what drugs you take. My husband (prior) to getting on Medicare paid on average of $500 a month for 3 drugs which included the copays, since the drugs were expensive and not generic.
I am guessing your premiums, copays and RX are way lower than mine.

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jmm2112 6 months ago

"Car insurance" and "house insurance" have nothing to do with routine maintenance and repair.

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Insurance Pickle.com 6 months ago

Insurance isn't designed for small items. Nobody filed bankruptcy because they needed new tires. And, it's not a maintenance plan like for your dishwasher and stove. It is insurance. It's designed to provide money for UNFORESEEN circumstances.

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anonimitie 6 months ago

Consumables (Tires, oil, etc) aren't at risk. They're consumeable and *guaranteed* to fail.
When people buy insurance, they're making a bet that something bad is going to happen. If I didn't think I'd have an accident, I wouldn't buy car insurance. The insurer is taking odds that I won't. So far, they've been rewarded.
They won't insure my tires because my car will need new tires one day. If I'd like to pay them $400 in premiums for a set of $350 tires, they'd be happy to do that but, that's a losing proposition for me.
After Update:
You're too confused.

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Zarnev 6 months ago

I'd advocate making health insurance more like auto and home insurance. Health insurance shouldn't pay for the small stuff like it does now; you should pay the doctors for basic office visits and such out of pocket.
However, for that to happen two other things need to happen. First, doctors and providers should have transparency in their charges. Just like you can call up several places and get prices for new tires and oil changes so you can compare and get the best deal you should also be able to call a doctor and get prices of an office visit.
Also, health insurance should not be tied to your employment. Your job does not pay part of your auto and/or home insurance so why should they pay part of your health? You should not be subject to the one or two plans offered by your employer; you should be able to pick and choose whichever is best for you.
Premiums are based on the loss ratio of the insurance company, and in general health insurance premiums are nowhere close to auto and home when you take out what the employer is paying. In general, homeowner's insurance will be less than $1000 for a year while a couple in their '50's are paying nearly $1000 per month for health insurance.

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