Are car insurance companies ripping off the public?

Answer 1

By and large the answer is "No", Most insurers in the U.S. are reputable companies and provide an important service too the Motoring Public. Insurers use complicated formulas and historical data to make projections and to determine probabilities of losses. The general public having little or no experience with such probability calcualtions involving the law of large numbers, risk sharing and risk assessment can often have a perception that they are being treated unfairly. In most cases this is not the case. Bear in mind that all the U.S. states have insurance regulations and very competent oversight in place for the protection of consumers.