Collectivizing Risk

  • January 20, 2024

When Obama imposed mandatory health insurance payments on Americans (the accurate way to put it as your health wasn’t and can’t be insured; rather, the insurance mafia used the power of government to ensure you paid the mafia for insurance) one of the things some people liked about this was that the mafia was no longer allowed to charge people who had “pre-existing conditions” more for insurance.

The mafia just charged everyone more for health insurance – which everyone was now forced to buy, thereby collectivizing the cost of covering people who were in poor health by making those in good health pay more for the coverage they didn’t need or use but were forced to pay for anyhow.

This included maternity care coverage for divorced/single men in their 50s and “substance abuse” coverage for people who didn’t abuse substances.

It’s the same principle being applied to car insurance, which everyone who owns a car is also forced to buy. EVs – which cost more to repair and replace than other cars and have a built-in likelihood of spontaneously catching fire when parked – are kind of like pre-existing conditions except some choose to have them. These costs are being collectivized – by making everyone pay them.

But why should any of this be so?

Is it unreasonable to “ask” (as the Left likes to put it) those who impose more costs to pay more to indemnify against the costs they choose to risk imposing on others?

“Choose” is italicized to make a point of just that fact.

People can’t help getting old – and sometimes they can’t help getting sick. But no one is – yet – forced to buy an EV. It is a purchase akin to the purchase of a Corvette in that the person who chooses either is electing to buy a vehicle that is much more expensive to repair/replace when it is damaged and more apt to be damaged, too. It is why the mafia has, historically, charged Corvette owners more for the coverage they are forced to buy than Chevette owners.

The Chevette owner might have been able to afford a Corvette, but maybe he didn’t want to spend the money on the car – or the coverage. Why should he have to pay more for coverage because his neighbor chose to buy a Corvette?

Or an EV?

Arguably, insurance companies ought to be free to charge whatever they calculate to be a sum commensurate with the risk they underwrite, as this would discourage excessive risk-taking. As for example the risk of building a beachfront home in a hurricane zone. People have every right to choose to do that. It’s nice to have a house on the beach.

But they ought to accept the cost of the risk, too.

Instead, the mafia collectivizes the risk, thereby increasing everyone’s costs. Not just once, either. Collectivizing risk eggs on more risk – and more costs. It is probably why “covered” Americans are less healthy today than they were when they weren’t “covered.”

It is certainly whey we’re all paying more for the “coverage” we’re all forced to buy for our vehicles.

Ironically, this is a function of the mafia’s having succeeded in using the government to force everyone to buy coverage – in the case of car and health insurance. No doubt the same is going to happen to home insurance, which is among the few remaining forms of “coverage” you aren’t forced to buy. Yet.

Everyone must now pay the car and health insurance mafia. But the mafia must also “cover” everyone – including the people who incur the most costs because they take the most risks.

If the car insurance mafia were free to refuse to “cover” the risks of EVs, it would likely save the mafia a lot of money – just the same as it would save the health insurance mafia a lot of money if it were free to deny “coverage” to  those with pre-existing conditions. Or at least, charge them commensurately.

And that would free up a lot of money for the healthy young person who didn’t have such pre-existing conditions and was unlikely to incur any costs for “health care” by dint of being healthy.

This is of course regarded as “unfair” by collectivists.

But how, exactly? The person who is healthy is not the cause of the unhealthy person’s problems. Arguably, it is unfair to make him pay for them – by making him pay more for insurance. Indeed, by making him buy insurance, at all.

Just the same, it is unfair to make people who didn’t buy an EV pay for the costs imposed by those who chose to buy an EV.

It is also something else.

Making everyone pay for the costs imposed by some hides those costs. Your EV-owning neighbor isn’t made to face the full costs of what he’s chosen to buy into – because you are helping him pay them. It works the same as guaranteeing health insurance “coverage” to those who have expensive pre-existing conditions. It’s not that their costs go down. It’s that yours go up.

Everyone’s does.

The fact that car and health insurance are now among the highest-cost things having everything to do with everyone being forced to buy them – and the mafia not being free to charge people what it actually costs to “cover” them.

It’s a devil’s bargain that we’re all paying for because some people believe there is such a thing as cost without expense . And other people are more than happy to cash in on that belief.

. . .

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