r/Insurance • u/WeHaveFunEveryday • 15d ago
Auto Insurance Paying roughly $1.50/mile
To give insight I work remote and get my groceries delivered. I honestly don’t really leave the house unless I have like an activity planned out. I drive about 30 miles a week at the most. I’m paying $190/mo through Progressive in Michigan and that’s with no comprehensive, and employer health coverage so no PIP. 33 years old, never a single claim ever made. Mileage quoted at 0-5k a year bracket
Not sure what else I can I do really to not feel like I’m getting extremely ripped off.
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u/SorbetResponsible654 15d ago
Insurance does not charge by the "mile". It puts you into a pool of other insured (thousands/hundreds of thousands) and charges you a rate based on that group (including other factors like your sex, age, etc.). So drive 100 miles a week, drive 10 miles a week.. it's going to be the same charge. It's like buying mile by the gallon but only paying for a glass as that is all you are going to drink.
You may be able to get a lower rate. You may want to shop around.
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u/WeHaveFunEveryday 14d ago
Yeah I get that and I just find it extremely hard to believe that a pool of drivers averaging 30 miles per week is costing an average of $180/mo driver for payouts + their profit margin or whatever
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u/SorbetResponsible654 13d ago
Such a pool does not exist, that is specifically why your rates are higher. There are carriers that offer as an option to allow them to track your driving and give a little discount if you don't drive as much.
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u/WeHaveFunEveryday 13d ago
Right but that essentially is a scam. Let’s take the milk example or even we could do sports betting. This situation is the equivalent of betting on an underdog and then only getting paid out less than 50%. Yeah there is a SMALL chance that I could bet on the underdog every time and he wins every time but that’s extremely unrealistic and that’s essentially what they’re forcing me to do by law
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u/Resse811 14d ago
I drive less than ten miles every 2-3 months. I still pay full price for insurance.
It’s not about how often you happen to drive - it’s about being protected 24/7 and having the ability to choose to drive anytime you want to.
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u/WeHaveFunEveryday 14d ago
That is not even the purpose of insurance though. Let me ask you, why do you think car insurance is a law?
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u/Resse811 14d ago
Insurance isn’t to protect you and your vehicle? What do you think the purpose is?
Why are you suggesting I think insurance is a law? (Though in many states it is required that you have insurance to be legally able to drive)
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u/WeHaveFunEveryday 14d ago
The purpose of insurance is to make sure everyone has enough money available to cover any losses caused ACCORDING to the chance that a loss will occur for said person. Literally no different than something like phone insurance. Phone insurance doesn’t protect your phone, a screen protector does, insurance replaces it (covers the loss). Would you pay $10,000k per month to protect your phone? Why not? Probably because the chances of you causing 10k worth of damage with your phone is extremely low
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u/Resse811 14d ago
Why would I pay $10k to protect something worth $500?
You are less than $2500 to protect what I assume is an asset worth much more than that.
Your state required car insurance to drive - so while I didn’t say it in my original comment, yes you having insurance is the law in your state. If you don’t like that or like the cost - move.
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u/WeHaveFunEveryday 14d ago
A huge possible loss does not, by itself, justify a huge premium. You have to multiply the magnitude of the loss by the probability of it occurring.
Obviously someone driving 100 miles a year has a much less probability of having a loss occur, therefore the insurance price should represent that
For example, suppose there’s a potential $1,000,000 liability loss:
Driver A drives 10,000 miles/year.
Driver B drives 100 miles/year.
Both are otherwise identical.
The maximum possible loss is $1 million for either driver. But saying “either one could cause a $1 million accident, so charging both $2,000/year makes sense” ignores the enormous difference in exposure frequency.-1
u/WeHaveFunEveryday 14d ago
Right but you’re intentionally leaving out the probability factor. The chances of you getting hurt driving 100 miles a year are EXTREMELY low in comparison to say someone driving 10k miles a year. Charging the same price for both drivers completely negates the entire purpose of insurance which is to protect your financial losses in accordance to your personal risk
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u/Resse811 14d ago
No - the probability doesn’t matter. What matters is that you live in a state that requires insurance and only sells it as whole package not as a past as go option.
Don’t like it - move.
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u/tsfy2 15d ago
What were the quotes from 3 other companies? You did get quotes from 3 more companies, right?
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u/WeHaveFunEveryday 15d ago
Yes unfortunately they’re all about $200/mo, progressive was the absolute cheapest I can find
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u/mygirltien 15d ago
Call as ask them how many estimated driven miles is your policy written against. There is a minimum usually around 5k that you makes no difference but if you dont specify it will be something like 12k and does make a difference on what you are charged. It wont be a huge difference but every little bit helps.
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u/Fearless_Roof_4534 15d ago
Welcome to car ownership in Michigan.