Your EV from holding a car insurance plan is slightly lower than if you’d put that money in bonds. The benefit is that you can spread your risk across multiple parties. It’s entirely different from medical insurance, where your EV depends strongly on individual circumstances (and can be very negative). Medical insurance providers aren’t allowed to give accurate pricing, so you basically end up with a really complicated subsidy program.
" Medical insurance providers aren’t allowed to give accurate pricing, "
Why are they not allowed to do so? I think it's more likely that they don't want to so they can make up prices as they wish.
"Your EV from holding a car insurance plan is slightly lower than if you’d put that money in bonds. The benefit is that you can spread your risk across multiple parties. It’s entirely different from medical insurance, where your EV depends strongly on individual circumstances (and can be very negative)."
This is exactly the same as health insurance. Spread risk over many people. EV depends on individual circumstances (driving skills or health). If health insurance is healthy people subsidizing sick people, then car insurance is good drivers subsidizing bad drivers. I don't see the difference.
But with auto insurance, if you're a bad driver, or even a driver with perceived higher risk (teen, unmarried, driving a little red sports car) your rates will be quite a bit higher. If you're a low risk driver, your rates are low. With ACA, if you are low risk (young and healthy) you are paying more than you would have otherwise.
