Is auto insurance a scam??

We go over the most common comment we get on all our social media platforms, that insurance is a scam. But is it? We discuss in detail the misconceptions and where insurance came from.

Is auto insurance a scam? A lot people think it is, many feel that insurance companies never do what they say. So why did the government make it mandatory if it doesn’t work? It became a law to ensure that drivers causing damage, especially those without personal assets, can compensate others.

Why is insurance so expensive? We also discuss here the recent rise in insurance costs.

Why can’t good drivers get their money back? Auto insurance uses a community pool system where everyone contributes to cover potential claims.

Why are drivers punished for others’ mistakes? Insurance companies group drivers based on risk, partly due to government regulations.

Why does credit score affect insurance rates? Insurers view credit utilization as an indicator of potential future risk, including driving behavior.