Boo

Boo hoo. Poor State Farm Insurance has had to pay out over US1 billion dollars to the devastated fire victims in southern California and has requested an interim rate hike, saying they are in a dire financial emergency. In their own way, insurance companies are a lot like banks. You pay them high prices year after year for your coverage, complete with annual rate hikes. Then, when they have to actually pay out, and they cannot find a way to deny coverage, they immediately cry for financial help, meaning instant higher premiums.

Paying out, of course, cuts into their bottom line. Like banks, they are happy to take your money as long as they can make lots of money. Good luck trying to get a bank loan if you unexpectedly lose your job. With insurance, claims cut into profits and that is not acceptable, so, everyone pays more, or, they will just stop insuring people. Like so much of our financial system, which we are brainwashed to accept from birth, it is totally rigged in favour of the moneychangers. Insurance companies really are not your good neighbour when you look at them up close.