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Top Ten Questions: Why is insurance so expensive?

Question 8

Q:         Why is insurance so expensive? Is it the insurers fault?

A:         Insurers will price coverage to make a profit, but the high cost is directly related to claims paid. Things I’ve seen:

Policy holder who wanted $8000 to repair $600 copula that fell off the top of a falling down garage.$5000 auto claim for Mercedes due to 5 MPH bump against concrete wall (the wall wasn’t even scratched).One of my most common questions are about expensive home repairs and will their homeowners insurance will cover it? It’s not a maintenance policy.

Numerous families tell me they’re in perfect health yet take $300 a month in prescription meds (Ritalin. Paxil, Viagra)

I’m only scratching the surface. Why does family health coverage run $1000 / month? Because people run to the doctor for everything.  Are you shy? Anxious? Can’t sleep? Can’t wake up? Have cloudy toenails? Restless legs? RUN to the doctor and get a prescription cure. Then wonder why everything is so expensive.

And blame the insurance companies.

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