Read any economics paper on the issues involved in insurance and you'll understand why things are the way they are. Moral hazard abounds on both sides of the tr

Read any economics paper on the issues involved in insurance and you'll understand why things are the way they are. Moral hazard abounds on both sides of the transaction, there are many other transactions that each party is a stakeholder to. It sounds like you have an issue with the premium the company charges for taking the risk vs. how they are making their money as the only difference. Do you feel that the guy who leaves his doors unlocked and thus gets broken into a lot should pay the same premiums as you? (I assume you lock your doors / take other precautions) Oh and your loyal customers they left because they saw an ad from progressive / geico about how they could save thousands on their insurance. Or conversely GEICO/Progressive see the rates you are charging and think about how much money they could make if they substituted their service with yours and then make you a "crazy" offer to sell. Also, part of GEICO's rates are the investment genius of Warren Buffet, by making shrewd investments with the premiums they are able to discount the insurance rate by a portion of the interest accrued on the premium.