Posted On: March 23, 2007, 2:21 pm CDT

Posted By: You don't get it

So you think they are horrible because they have higher rates in higher risk areas? You think they should hand out money and pay any claim that comes in? Are you willing to fund that pool of claim money?

Gee, this is basic econ 101. If they collect only $1,000 a year for a home policy and they have to pay $50,000 for a claim 4 years into the policy, they haven't MADE any money. Factor the risk of probably HAVING to pay a claim on that $100,000 house because of the area it is in (flood, earthquake, tornado, etc) and think of how many other losses you will probably have.

I don't think it's any wonder that insurance companies aren't in the business to lose money. Who is in business to lose money? If you are, by all means, please hand over your paychecks. I'll gladly take them from you. I have never heard of a company or business that wants to pay out more than they have coming in. Again, very basic.