Understanding Insurance Resentment — Why We Resist What Protects Us

Published Date: 11/14/2025

Insurance. It’s a word that rarely inspires enthusiasm. For most people, it represents another bill, another obligation, another reminder that life comes with risks. Yet, as Karl Susman explains in his episode of Insurance Hour, this aversion to insurance often masks a deeper misunderstanding about why it exists, how it protects us, and what role we play as policyholders.

This post dives into those key insights, breaking down why many consumers feel “forced” into buying coverage, what responsibilities we share with our agents and brokers, and how our own behaviors — from deferred maintenance to distracted driving — directly impact premiums and claims.

Why We Feel “Forced” Into Insurance

Most people first encounter insurance as a requirement, not a choice. When you buy a house, your lender mandates homeowners insurance. When you finance or lease a car, the bank requires auto coverage. In both cases, the underlying reason is the same: lenders want to protect their collateral.

From the consumer’s perspective, this feels unfair. After all, you’ve already made a down payment, signed on for decades of mortgage payments or a car loan, and now — one more expense — you must buy insurance. It feels like an imposition rather than protection.

But take a step back. Imagine the alternative. What if the bank didn’t require insurance — would you be comfortable leaving your largest asset uninsured? If your home burned down or your car was totaled tomorrow, could you absorb that financial loss on your own? Probably not.

Insurance, at its core, is risk management. While it’s true that lenders require it for their own protection, it equally safeguards your investment. Just like the FDIC protects your money in the bank, your insurance policy protects the tangible things that make up your financial foundation.

The Real Reason Premiums Rise

Susman points out another major frustration among consumers: “Why do my rates go up after I file a claim? Isn’t that what insurance is for?”

It’s a fair question — and one that reveals how easy it is to misunderstand how risk-based pricing works. Insurance isn’t a savings account; it’s a risk pool. Every policyholder contributes premiums that fund the collective pool used to pay claims.

When you file a claim, your individual risk profile changes. You’ve moved from being a “low-risk” insured (no losses) to someone who has had a loss event. Statistically, that increases the likelihood of future claims. From a business perspective, your premium must now reflect that higher probability.

It’s not personal — it’s math. Just as your auto insurer reassesses your premium when you get a speeding ticket, your homeowners insurer reevaluates after a claim. Annual renewals exist precisely for that reason: to adjust to new information about you, your property, and your risk exposure.

Why Reading Your Policy Matters More Than You Think

Here’s a sobering truth Susman highlights: very few policyholders actually read their insurance policies.

That’s a problem.

Every insurance policy is a contract — a legally binding document that details what is covered, what isn’t, and under what circumstances. When consumers don’t read or understand it, surprises are inevitable. For instance, homeowners might assume all personal belongings are covered, only to discover limits on jewelry, art, or firearms after a loss occurs.

The responsibility for understanding coverage doesn’t fall entirely on the consumer. Depending on the state, agents and brokers have varying degrees of duty to explain policies. But ultimately, insurance is a shared responsibility. Your agent can’t know what’s most important to you unless you tell them.

That’s why transparency is key. Do you own valuable collectibles, a wine cellar, or expensive custom auto parts? Tell your agent. These details affect both your premium and your protection. If your car has been modified or your home upgraded with a second story, those additions need to be reflected in your policy — or they won’t be covered.

Agents, Brokers, and the Knowledge Gap

Many consumers also misunderstand the relationship between themselves, their agent or broker, and the insurance company.

Some assume agents are all-powerful experts who can intuitively tailor coverage to fit their needs. Others view them as mere “order takers” who simply process what the client requests. The truth lies somewhere in between — and it varies by jurisdiction.

What’s consistent, however, is that the consumer often bears the cost of miscommunication. If your policy doesn’t cover a loss, you may be able to challenge it, but the stress and financial strain can be significant.

Susman’s advice is simple but powerful: take initiative. Ask questions. Request explanations in plain English. Even the best brokers can’t anticipate every nuance of your situation unless you actively engage. A five-minute conversation now can save months of headaches later.

Deferred Maintenance: A Hidden Cost

Insurance is designed to protect you from unexpected losses, not from neglect. Deferred maintenance — putting off roof repairs, ignoring leaks, skipping updates — increases the likelihood of damage.

Some homeowners rationalize: “If something happens, that’s why I have insurance.” But that mindset backfires. Insurers can deny claims for neglect-related issues, and even if they don’t, repeated or preventable claims can drive up your rates.

Taking a proactive approach — replacing aging systems, maintaining plumbing, trimming trees — isn’t just good homeownership; it’s good risk management. As Susman notes, “The best claim is no claim.”

Every avoided claim keeps your record clean and your premiums stable. Think of it as investing in your future insurability.

Driving Distraction: Modern Risk in Motion

Few topics frustrate insurance professionals more than distracted driving. The rise of smartphones has dramatically increased accident frequency and severity.

Susman cites data showing that post-pandemic accident rates are nearly three times higher than before — a staggering statistic. The culprits? Texting, scrolling, or even glancing at notifications while driving.

Many drivers underestimate the danger of a “quick look.” But human vision and reaction times don’t work that way. The split second it takes to refocus your eyes from a phone screen to the road can be the difference between a near-miss and a collision.

Even minor fender benders now come with major costs due to high vehicle repair prices and complex technology systems. What used to be a “small accident” can now mean thousands of dollars in claims — raising costs for everyone.

The Power of Prevention

Insurance is about transferring risk, but that doesn’t mean abdicating responsibility. Whether it’s your home, your vehicle, or your health, you play a critical role in controlling how much risk you carry.

Preventive habits — regular home upkeep, safe driving, staying informed about your coverage — all contribute to fewer claims and lower long-term costs. As Susman emphasizes, if more consumers adopted proactive risk management, premiums across the board could decrease.

Insurance isn’t the enemy. It’s a partnership — between you, your insurer, and your agent — designed to shield you from financial disaster. But like any partnership, it works best when both sides communicate and take responsibility.

Final Thoughts: Reframing Insurance as Empowerment

At the heart of insurance resentment is a sense of lost control. No one likes being forced to spend money on something they hope they’ll never use. But shifting your mindset — from viewing insurance as a burden to seeing it as protection for what you’ve worked hard to build — changes everything.

Insurance isn’t about fear. It’s about freedom — the freedom to recover from loss, to rebuild, and to move forward without starting from zero.

So the next time that premium bill arrives, take a moment to reflect: you’re not just paying for a policy. You’re paying for peace of mind, financial stability, and the assurance that when life happens — as it always does — you’ll have a safety net waiting to catch you.