The Great Auto Insurance Rip-Off

Maybe you have not noticed, because it is so "standard", and accepted as the norm. But auto insurance is a huge rip-off.

I'm not referring to the fact that, should you file a claim, they raise your rates and get their money back (which means you are not really insured at all). No, I am referring to the theft that insurers participate in when you have more than one vehicle.

You see, they charge you for each vehicle. Sounds reasonable on the surface, but think about it - insurance premiums are for the purpose of covering the insurers risk. Now, if you drive 10,000 miles a year, are 30 years old and have a clean record, that determines "risk" level. Now, if you get a second car, you must pay a second premium - for the same 10,000 miles, because you are still driving 10,000 miles a year, no matter how many vehicles you own. And if you get a third car, you must pay a third premium for that same 10,000 miles.

The risk to the insurer has not increased at all, but they charge you additional premiums none the less.

If insurance companies were honest instead of corrupt, they would insure the DRIVER, based on the driver's level of risk (miles driven, driving record, age etc), and that coverage would cover any vehicle he drives, since changing vehicles does not increase risk to the insurer.

Sure, you can say that each vehicle has a different value, and there is more risk for a Mercedes than a Chevy. But that is easily handled by insuring the driver for his most valuable vehicle.

Of course, you might argue that the driver could stick to owning only one vehicle, but that is not realistic for many drivers. Take myself, for example - I own a car for daily transportation. But I sometimes have to haul materials and supplies, so I also have a truck. And since car shows are a favorite past-time, I also own an antique 1980 Porsche, driven only to shows. And, being an avid biker for over a half century, I have a Harley.

That said, I tend to only drive about 12,000 miles per year. And that mileage does not change, or increase, because of owning additional vehicles, so the risk level for the insurer does not increase. Yet, they certainly increase my premiums! Each vehicle must be insured separately. It's a huge con perpetrated by insurance companies and sponsored by the state legislatures.

Maybe it's time for us to rebel - to notify our legislators that we will no longer allow insurers to rip us off, and tell our state representatives and senators that they should require insurers to insure the driver, not the vehicle. And insurers should be prohibited from padding the premiums to make up for any losses, since they are only losing the money they have been stealing, anyway.