> There is still competition, though, and we don't see price gouging in food, for example, just because people have to buy it.

There's not a law that requires me to buy food, nor a law that requires me to buy specific types of food. I can grow my own food, or buy from other people locally if I wanted to.

> If insurance is so overpriced, then why don't other companies enter the market?

It takes extremely deep pockets to be able to sell insurance in the first place, and it's a relatively regulated industry.

Anyone can grow some tomatoes and sell them to me at a farmers market with minimal overhead. Few can sell me comprehensive insurance that will pay out when I need it.

(PDF Warning)

https://www.naic.org/documents/topic_insurance_industry_snap...

The United States' property and casualty industry's total profit margin on the whole was about nine tenths of a percent in 2018, which was a reversal from being net unprofitable in 2017.

There are about 2500 property and casualty insurance companies in the United States. Surely there's overestimation since (I'm guessing) the NAIC will count an insurance company in several states as several companies for the purposes of a count, but even if that's not the case, there are at least a hundred car insurance companies to choose from in any given state.

The purpose of an independent insurance agent (if everything goes right) is to help a customer select the best policy for their risk, and there are a ton of independent insurance agents, so one hopes that severe price gouging doesn't persist. However, not everyone uses an insurance agent - or the agent only writes with one business - so in practice, this kind of overpaying can occur to lots of people.

Well I am new to US, had to buy renter's insurance; Geico and everybody offered for $20+ per month; but Lemonade quoted about $6. Almost similar coverage. Now for Car, Geico was most economical $86; Lemonade does not offer, Dealer said $125, Others were like $100-120.

I think as more startup companies enter insurance, prices are going to be better & more competitive.

> There are lots of things we are 'required to buy' - food, shelter, etc. There is still competition, though, and we don't see price gouging in food, for example, just because people have to buy it.

No, but we absolutely see price gouging in shelter.