by Jerry "Jet" Whittaker

Feb 23, 2007

Car insurance gambling:

Automobile insurance or vehicle insurance, car insurance, motor insurance is insurance consumers can purchase for cars, trucks and other vehicles. Its primary use is to provide guard against losses incurred as a result of traffic accidents. An insurance company may declare a vehicle totally destroyed if it appears alternate would be cheaper than repair. Car towing coverage is also known as roadside assistance coverage. Traditionally, car insurance companies have agreed to only pay for the cost of a drag that is related to an accident that is covered under the automobile policy of insurance.

Basis of premium charged:

Depending on the authority, the insurance premium can determine by the insurance company in accordance to a framework of regulations set by the government. The insurer will have more freedom to set the price on physical damage coverage’s than on obligatory liability coverage. Some people think car insurance a type of wager that is played out over the policy period. The car insurance company bets that an insured or its property will not suffer a loss while the insured puts money on the opposite outcome. The difference in the fees paid to the car insurance company and the amount for which it can be held liable if an accident happens is roughly similar to the odds one might expect when betting on a racehorse.

Car gambling analogs:

In closed and supportive communities where others can be trusted to step in to rebuild lost property like car, the arrangement of having a car without insurance can work. While car insurance is analogous to gambling in terms of risk and reward, the main difference is in the motivation behind the process is that the gamblers are risk seekers.  Insurance buyers are risk avoiders. Gamblers assume a risk that they would not otherwise be exposed to that has the possibility of either a loss or a gain like a speculative risk. Put another way, in a car insurance gambling transaction the relationship between the bettor and the subject is created through the bet itself.  For an insurance transaction, there is an exogenous relationship, usually economic or ancestral, that is connected to the insurance. It is the way of restating the insurable interest requirement. With insurance, an insured is managing risk that it could not otherwise avoid and that does not present the possibility of gain too.

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