Except you're missing the fundamental point that insurance companies are for-profit businesses rather than charities.
Except I mentioned profit already, and you missed the fundamental point of your fundamental point that there should be limits to the amount of profit someone can bleed others dry over; And most insurance is mandated by law, and are strictly regulated, which as anyone knows... creates artificial monopolies. Why can't we just get 1,500 people together, and put that money in an account managed by the government, and let them manage the insurance? What benefit is served by allowing private for-profit companies to provide most forms of mandated insurance -- like car or auto, over government administration?
Afterall, we've already legislated that you have to have it... why then not take the next step and simply roll it into our taxes? I am not sold on the idea that the private sector can do a better job. Or better yet, why don't I do it and explain in gritty detail just how fucked over your "fundamental point" is here -- and how badly for-profit enterprise is screwing over all of us.
In 2010 there were 5,419,000 police-reported accidents. Source
The US population was 308,745,538 in 2010. Source
That works out to about 1 car accident per 57 people.
According to the CDC, the cost of those accidents collectively came out to "$99 billion, or nearly $500, for each licensed driver in the United States." That is about $41.67 per month.
Now how much are we paying? According to these guys, in 2010, the average expenditure $791, or about $65.92 per month. If these numbers are accurate, than that means that the administrative overhead and profit combined comes out to about 37%.
That means that over a third of what you're paying is above and beyond what's necessary. Now many have railed against medicare and numerous cases of gross incompetence, cost-overruns, and flat out fraud have come out of the program. I'm sure you've heard of it. But take a guess at the total cost of administrative overhead for that program. Okay, now here's the truth: It's about 1.5-2%.
So even the much-maligned medicaid program, routinely paraded out as an example of how our taxpayer dollars are being wasted... comes in at a fraction of the cost of private for-profit insurance.
Now, please... tell me how capitalism is saving us money. I fucking dare you.