I've seen these commercials that insurance companies run on TV. Geico tells us that 40 million people switched to Geico last year. I pay roughly $100 a month for insurance on my truck. Take $100 x 40 million NEW customers, and you see what kind of money they are taking in every month. Thats just new customers! Even if the profit margin is only 10%, they are making a killing.
I too have a problem with deductibles. I believe, that after paying premiums for many years, with no claims, the deductible should be waived. In my case, the premiums paid add up to well over $12,000 for the last 10 years, yet I still need to pony up another $500 for coverage after a hailstorm? That is certainly the "robbery" part of the equation.
In the interest of full disclosure, my brother is my insurance agent, and I know he, as the agent, has always taken great care of his customers, including me. But once a claim is filed, for the most part, the agent is out of the equation completely. After the massive hailstorm in Bozeman a while back, I got $4100 in lieu of repair, and applied that money towards the principle of the loan, getting me back in positive territory in regards to the value of the vehicle versus what was owed. I parlayed that difference into a down payment on a newer, much nicer vehicle with almost identical payments. So as much as insurance can suck, it was a big bonus for me in this case.