The problem is that people believe they are just buying something they will never get a benefit from… that is true statistically! However, when you crash your car and someone is hurt you become very thankful when the summons from the court house shows up and the insurance company deals with it.
Take the situation when a seemingly healthy 47 year old father of 2 dies of a heart attack and an insurance agent shows up with a big check for the family to continue living.
No one ever complains about their auto insurance, home insurance or life insurance when they have to make a claim and the insurance company is there to pay… the complaint comes when they believe the premium for the insurance is too high or a waste. The cost of insurance is not at the time of the premium it is when something is not covered. It is therefore important to have the right insurance with the right company for the right price. Not all insurance companies are created equal and neither is their claims coverage.
Insurance is not a scam, it is a way to put financial burden on someone else in case of a loss.