What if car insurance was like health insurance?

It is a beautiful day. You are moving down a road and you pick up a nail in your tire. A few miles later, your tire is wearing out, so you have to stop at your local garage and plug it in for $ 10. They suggest that you buy new tires before next winter.

It has been 3 months since your last oil change. Since it’s a good day, go into Lube Stop and spend $ 50 on an oil change.

In fact, the day is so pleasant that you fill up your tank and take a long walk in the countryside.

On the way back, you notice that your brake pedal is low, so plan to re-tune the brakes in the near future before the rotors are damaged, another $ 75.

What is missing from this equation? He did not consider asking his car insurance to cover the expense.

Now what if car insurance was like health insurance?

Imagine new laws requiring all gas stations to file an insurance claim every time the pump fills up. But good news: you no longer need to pay in advance. Tires, gas, and oil changes are now covered by your car insurance.

Under the new regulations, the gas station has to wait 30 to 60 days to receive payment. Of course, the office worker filing the claim wants your paycheck weekly. The person reviewing the claim does, too. The insurance office has shipping, utilities, and rent costs, not to mention they expect to make a profit. Some claims would be denied or lost, so the gas station would naturally charge everyone a little more to cover the losses.

Do you think the price of gas would be higher or lower? Would it really cost more or less to provide the same service?

Suddenly, your $ 800 for gas and maintenance has doubled, or more.

The station owner is angry that he has to hire more help, wait to be paid, and deal with unnecessary grievances.

At least to begin with, you (the client) are happy, until you receive your insurance bill, which has increased by $ 1600 to cover the new services.

But when you get the bill, you’ll have gotten used to free gas. Hmm, maybe if you drive more you will make up for the increased premiums. You will get new tires more often, as long as your insurance allows it. And of course you’ll want the best, none of the outside brands will do.

This scenario is exactly what happened with health insurance. And so premiums go up more and more. Does any of this make sense to you?

It doesn’t take a rocket scientist to see that when everything is “free”, the “need” is endless. Of course, nothing is free, it just looks like it. You keep paying through a third party. And if you’ve already paid, you want the best, AND you don’t want to pay an extra dollar for it.

Of course, your insurance will take your shareholders into account and should make a profit, even if this is against your best interests. Only generic oil and knockoff tires will soon be covered, not to mention low test gasoline. All this at double the price I used to pay.

Makes you want to go back to the old days, doesn’t it?

Copyright 2010 Cynthia J. Koelker, MD