That's just blatantly false. I'm all for hating companies that gouge people to make money, but insurance isn't inherently a scam. Insurance, when implemented properly, is paying a low regular premium to offset a risk you can't afford should it hit. I've insured my house against burning down, because I can afford to pay a small amount once a month while a fire (while unlikely) would bankrupt me. Most likely, I'll lose money in the long run by paying for that insurance, but that's not the point. The point is that I can afford to lose money over a 30-50 year period, but I cannot afford to lose my house at any single point during the next 30-50 years.