> The foundational premise of the insurance concept is that risk is spread across every participant in an equal manner.
Applying this broad principle to auto insurance, it isn't doing well. Auto ins is ~mandated. Participants are forced to pay for risk pools they aren't part of.
ex: Car repair costs are skyrocketing. Premiums are also skyrocketing, including for people who don't carry collision.
Sure. But insurance companies leverage that mandate; they make people who don't choose (or can't afford) collision policies subsidize people that do. With this, the bargain of shared risk is quietly killed and replaced with exploiting the poor (or frugal) to pay for the non-poor (or lavish).
Applying this broad principle to auto insurance, it isn't doing well. Auto ins is ~mandated. Participants are forced to pay for risk pools they aren't part of.
ex: Car repair costs are skyrocketing. Premiums are also skyrocketing, including for people who don't carry collision.