Obama On Insurance; Or Rather, Obama Failing To Understand Insurance

Via theblogprof, we have here a clip of Obama discussing the car insurance policy that he had as a young man that “really wasn’t serious insurance” because it didn’t cover repairs to his “beat-up old car” when he was rear-ended.

Now, think about this:  if you’re a young kid in college, you drive a beat up old car, and you’re saving all your pennies to scrape together pizza money and tuition payments, what kind of car insurance do you typically buy?  Do you go all out and buy comprehensive collision coverage for the rolling landfill with an acne problem, or do you get the most limited, basic coverage that will basically cover your liability if you cause an accident?  Yeah, you get a personal liability & property damage policy to cover yourself, because it just wouldn’t be worth it to pay extra for collision coverage; chances are, the cost of the deductible would exceed the value of the car in any accident worth mentioning.

So there’s a couple of possibilities here:  one is that Obama splurged and bought a full-coverage policy for his old beater, but he bought it from a really disreputable company, in which case, well, caveat emptor, and if that’s something the company did on a regular basis, you can be pretty sure that that sort of situation is precisely what free markets exist to correct; that company would lose customers like mad and die out over time without any government intervention.  The other option is that Obama had a basic liability policy that didn’t cover accidents like the one he was in, in which case, well, tough luck.  It’s called risk.  Risk is a part of life.  If you can’t embrace a little bit of risk in life, you won’t go anywhere.

Not that I think any of this makes any bit of difference to Obama.  The story, if it indeed happened like he told it (which I personally doubt, but then I doubt everything he says these days) is nothing more than another way to drum up anger against the current favorite straw man of the left, the insurance companies.  And in the end, I don’t believe that Obama cares one whit about “competition,” “markets.” or, for that matter, individual liberty.  He’s no bolshevik, but he’s certainly a statist, and in the end, that is anathema to the founding values of America.  We’re ultimately worse off having had him in the Oval Office.