Lowering the Cost of Auto Insurance – The Burning Platform

Guest blog by Eric Peters

Donald Trump has promised that he will use the power of the presidency, if he gets it, to lower the cost of auto insurance – which is skyrocketing for everyone, including people who haven’t even gotten a “ticket” for a trumped-up traffic “violation” that could be used as an excuse to charge more for “coverage.”

“Your car insurance just went up 73 percent – ​​vote Trump and I’ll cut it in half!”

Which – despite the haughty sermons of the counselors of the insurance mafia like Robert Hartwig, of the boringly designed Insurance Information Institute – he could do what is called executive order and never mind pedantic legalisms about the “Constitution” and what it says a president can and cannot do. The communists (call them by their real names; “Democrats” they are not, the last of whom was RFK, Jr.) only object to this kind of executive order when it is issued by someone the communists don’t like in a way that will stop the advance of communism. It’s foolish to play fair with such people.

People play to win.

““Someone should explain to Trump that insurance – and insurance rates – are regulated by the states, not the federal government,” Earwig cajoled.

But “regulated” isn’t quite the right word, is it?

In fact, it is the states – the state governments – impose the now universal obligation to hand over money to the car insurance mafia as a price (one of them) for being allowed to register and drive a car on government roads.

Get it out of your head that there is such a thing as “public” something. It is either privately owned or it is government controlled property, in which case it is is government property in everything but name. Like the house you don’t really own, even though it’s You who pay the mortgage and even if you mortgage paid off. You have to keep paying the government, right? How can you imagine “owning” something that the government can take if you ever stop paying the government to live there?

It’s the same with cars, effectively. You can’t even register (i.e., earmark) in most states without handing over any money to the insurance mafia. Even if you never drive it on government-controlled roads. This pretty much destroys the pathetic justification given for requiring people to hand over money to the insurance mafia, namely that it is not even possible to harm someone else on government-controlled roads with your car if it never leaves your driveway.

““If Trump could wave his hands on day one and cut auto insurance premiums by 50 percent, auto insurers in the United States would immediately stop selling auto insurance,” Earwig said.

“The reason of course is that if insurers were forced to sell car insurance at 50 percent of the current price, it would lead to huge losses and the eventual bankruptcy of the insurer – which is why they wouldn’t sell any at all.”

Italics added.

“Huge losses”? Oh, the humanity!

What about the huge losses the millions of people who are forced to pay money to the insurance mafia every year for damages and injuries they have suffered not cause? It is interesting – revealing – to note that no one ever gets paid by the insurance mafia for not causing harm and suffering. The revenue stream only goes one way, Captain.

Didn’t you hear?

More importantly, Trump lacks the following: cost of coercion that drives up the cost. It’s easy to understand, if you think about it. Anything you’re forced to buy is going to cost more to buy for the simple (and obvious) reason that you’re forced to buy it. In other words, if a seller has the power to force you to buy what he’s selling, he has an incentive to sell it to you for more rather than less.

And – in the opposite case – when a seller cannot force you to buy what he is selling, he has every reason to sell it to you for less. Or better yet, he will not be able to sell you anything at all – unless You believes that what he is selling is worth the money.

For example, Trump could lower the cost of auto insurance.

By issuing an executive order that no state has the legal power to force anyone to buy anything, especially the products or services of private, for-profit corporations like the auto (and health) insurance mafia. It’s not just that people are getting screwed, they are also getting screwed through what are called “taxes” to theft a better mouthfeel. In this case, they are being mulled for the profit of insurance cartels that are so rich that they can afford to bombard us with endless, annoying TeeVee ads about how we will “save” by them money! Forget about office buildings with marble floors, glass walls, executive salaries and so on.

They plead poverty like a Borgia pope – and are just as insufferable.

Take the coercion and insurance companies would be required to reasonable. They would lose the brazen power to just raise their rates and tell people to suck it up, buttercup. Because people would be able to say, “No, I’m not going to pay that. I didn’t file a claim. You have no legitimate reason to ‘adjust’ my premium. Make it the way it was – or cancel it.”

Just imagine that.

It doesn’t have to. That’s just how it works in what’s left of the free market. No one is forced to eat at Olive Garden, and because Olive Garden knows this, it doesn’t charge $50 for a stale sandwich. The insurance mafia does, in fact — precisely because it can charge you $50 for a stale sandwich.

But if it wasn’t mandatory, some people would drive without insurance and one of them could hit you and leave you with the bill for the damages!

Absolutely. As if that isn’t already happening, despite the coercion. Just like people are being murdered with illegal weapons every day in places like Chicago and DC where it’s illegal for non-criminals to own guns.

Of course, criminals don’t care about such laws.

Just as “dangerous drunks” will continue to drive drunk despite the laws that say it is illegal. Just as there will be people who drive without insurance, despite the law that says they are required to buy insurance. Which – as such – does not harm or injure anyone. If they do cause harm or injury, then hold them accountableby any means necessary. Confiscate their income. Make them work a chain gang. Whatever it takes.

Just stop taking money from people who not to damage something or harm someone by forcing him to hand it over to the insurance mafia.