December 14, 2017

The Pros and Cons of Insurance


When it comes to insurance, it’s a mixed bag. Insurance can be a vital and life-saving thing, but it’s also prohibitively expensive, and this means many in need simply do without, and that’s truly tragic. After all, those of us with the good fortune to have insurance can think of at least one time when we’ve truly needed the coverage. For example, what would my parents and I have done if we were left without medical insurance when I was diagnosed with a rare blood disease as a child. As a result of many medical visits and treatments, the disease went into remission, but who knows what could have happened if we couldn’t get that medical attention, and that is the reality that many of us do, in fact, face.

Insurance comes in many forms, however, and they are varying degrees of usefulness, as well. For example, medical insurance is the one we all think of, and car insurance is mandatory for drivers and vehicle owners. For a refresher, medical insurance covers the cost of expensive medical procedures and medications, while car insurance covers the cost of repairing your car if you get into a car accident or that of the other driver. Consider it like you’re paying the insurance company to go to Autozone for you, or take your car to a mechanic. All types of insurances share a commonality, of course, and that commonality is that each of these services as you pay a monthly fee to have the insurance company pay for things too expensive for you to afford later on. In the end, you’re paying a lot less if you need any of the services insurance provides. For example, car insurance is about $100 a month, but car repairs can cost thousands of dollars.

Using the same logic, however, if you’re lucky enough not to need insurance, then you’re actually paying more than you would without it. This can lead to some of us foregoing insurance in favor of simply being cautious and trying to avoid these problems. This can be a dangerous mindset, but the fact remains that insurance could stand to be cheaper. The price point of insurance does little to incentivise coverage, in my opinion. However, in the case of automobiles, we don’t have a choice. Auto insurance is mandated by law for all drivers. There’s a great reason for this, as the driver who causes an accident should have to pay for damages to all parties, and they wouldn’t always be able to afford it. However, having this mandatory insurance cost often outweigh its worth, and it’s all spelt out there in the numbers, is truly cruel.