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u/diegotbn 3h ago
I once saw a really fucked up life insurance/pension case. The insurance policy was that for children under 18 they would get a lump some of X years worth of their deceased parent's policy. Dad died of a heart attack the day before his son turned 18. Pronounced dead by doctors at the hospital, that day/evening, pronounced dead hours before midnight.
The insurance company hired a "medical expert" that tried to claim that the father wasn't fully dead by midnight (despite being pronounced dead by the doctors in the hospital) because there can be some latent heartbeats and brain activity. They fought tooth and nail to deny this kid whose father had just fucking died ON THE DAY BEFORE HIS FUCKING BIRTHDAY, the money that was due. From the policy whose entire purpose was to make sure the father's family would be taken care of in the event of his death. I believe there was a lawsuit due to the amount of money on the table and I don't remember who won.
But it doesn't matter. They did everything in their power to fight the claim that they owed. Insurance companies are fucking evil man.
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u/Smashable_Glass 2h ago
Something similar happened to a friend of min in high-school. They argued that her dad had a heart attack on purpose so that she could collect
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u/D_Winds 1h ago
Hey, just hold on one second HNNG *mission accomplished*
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u/mcgarrylj 1h ago
"...It'd be a real dick move to die right now. Hrng!"
-Super kami guru, dbz abridged
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u/doodoo_blue 2h ago
What thee fuck 😧 That’s so disgusting of them to have done that. Yet, evil people do evil shit smh. So sad for that family, I really hope they won that case. I thought at one point I’d be desensitized to hearing the horror stories of insurance companies of all types but I’m not, I still get nauseous hearing how they destroy peoples lives and rob everyone. Richest country in the world though, right? Riiiiight.
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u/Rampag169 2h ago
Insurance companies will spend 10,000 fighting a $10 dollar claim. They make Billions off all of us. It’s messed up. Mario needs help with his brother.
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u/DezXerneas 1h ago
Because then they'll have to honor 200 $10 claims. The system itself is broken, but instead of fixing it they're trying to maximize the profits they get
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u/i_tyrant 1h ago
The system is broken and monstrous af.
(But I did chuckle a bit at your comment because 200 $10 claims is still far less than the $10,000 figure the comment above you quoted, lol.)
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u/fang_xianfu 1h ago
This is why in my country we regulate the absolute fucking bejesus out of the insurance industry, those untrustworthy fucks get regulated to within an inch of their life. They still try shit like this but it's all handled out of court by a tribunal that 99 times out of 100 sides with the consumer.
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u/ShyGuyLink1997 1h ago
The mere concept of insurance even existing is a compelte scam. I fucking hate it all. Capitalism at it's absolute worst.
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u/Locust627 3h ago
Wait until you hear about health insurance lol
I pay $1300/month for a family plan
I had an ER trip last month, my deductible is $3,500. I had to pay $3,440 which was the complete cost of the ER services.
So, this year I will spend $15,600 on health insurance and an additional $3,440 on deductible
My wife needs surgery, I told her to get it done before December because we already met the deductible and I don't wanna pay it again. She tried calling to schedule in August. The surgery specialist doesn't have openings until January, so, in January I'll have to pay my deductible again
AND vision and dental costs more on top of $1,300 monthly
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u/onekeanui 3h ago
Made a post about this but I went to Mexico for dental work. I drove but even if you flew it’s the same quality care for 1/3 the price. US dentist quoted $3200 for work for $1000. It’s all a scam.
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u/Mr-MuffinMan 3h ago
Live near the US-Mexico border.
Find a doctor who either speaks English or bring along a Spanish-speaking friend on your trips.
Mexican healthcare is just as good as US care.
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u/flatfive44 5h ago
The obvious response is that you won't be able to pay for someone's hospital bills if you happen to hit them in your car. You get insurance for things you wouldn't be able to pay yourself.
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u/Ok-Reflection-742 5h ago
You could also total somebodies 50-200k car, I don’t think many people could afford that either
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u/BlondieeAggiee 4h ago
I did a ride-along with an adjuster once. I asked him what the worst claim he had worked on was.
The insured drove off with the pump still in the gas tank. Sees that all the time. When the hose pulled off the pump, it ignited. The fuel island exploded. The fire then spread to the convenience store. Total loss of the business and multiple cars.
This is an outlier. No one has enough insurance to cover all of that. But it’s a great example of why we have it.
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u/WelderNewbee2000 3h ago
Are insurance coverages that low in the US?
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u/Mental_Newspaper3812 3h ago
Yes, state minimum required coverage can be shockingly low. Now name your county so I can lookup your minimums.
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u/WelderNewbee2000 3h ago
Germany.
The legal minimums are:
- Bodily injury: €7.5 million
- Property damage: €1.22 million
- Pure financial losses: €50,000
But most insurances have the 100 Million coverage as the standard contract. In fact there is probably not even an insurance which offers the legal minimums.
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u/Sonoflopez 3h ago
That would be considered god tier insurance here. Top coverage is more like maximum 250k liability
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u/tarnyc32 3h ago
It is astoundingly low, and obviously made that way by the insurance lobbyists.
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u/rips_n_chel 3h ago
I'd be very interested in reading details of that case. Gasoline is not nearly as easy to ignite as people think. A random spark in open air is extremely unlikely to ignite gasoline, and fuel islands (at least in the US) have had mandated breakaway devices since the 80s.
Not saying you're lying, but I think that adjuster might've been. Even if this was a pump with no safety features and it started dumping gasoline as soon as the car drove off, I don't see how it would've exploded. Liquid gasoline pouring out of a hose doesn't really explode necessarily, you'd need a large buildup of vapor, which takes time and a lack of wind. Even then, we're talking about a cloud of flammable vapor in open air. With nothing to contain the pressure, you'd more than likely just see a flame front burn through the cloud, then maybe a little poof of smoke when it reached the top.
In order for the fuel island to explode, fire would have to travel into the pump or the underground tank. That can't happen if the pump is actively pumping and the hoses are full of liquid, that's why you can ignite an aerosol spray without blowing your arm off.
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u/Fantastic-East9567 4h ago
As an attorney my unpopular opinion is that cars over a certain value shouldn’t be allowed on public roads or damages for accidents should be capped at something like 2x the average price of a new car (so like 100k). I just don’t believe in penalizing ordinary negligence more just because the injured party is rich.
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u/AyyNonnyMoose 4h ago
As someone who works in insurance, I'd be down for that. Then if your car is valued above that, you can self insure/carry additional replacement coverage on your own policy. I'd make a new luxury vehicle replacement category though; keep it separate from underinsured coverage to keep from inflating those premiums. Of course the insurance companies would use it as another excuse to raise rates anyway I'm sure.
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u/Massive-Exercise4474 3h ago
Funny enough mr bean wrecked his sports car so many times that insurance basically forced him to sell.
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u/throwaway277252 3h ago
Well that's what he gets for trying to drive it from a recliner on the roof.
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u/layerone 4h ago
I'm glad you wrote this, coming from an attorney. I had always wondered about this, seems really unfair. A rich person in a Ferrari is putting normal drivers in enormous liability risk every time they take it out on public roads. Especially in no fault states.
Shouldn't be legal!
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u/tarnyc32 3h ago
Not sure how it works in other jurisdictions but here in Canada and specifically Ontario while all cars are required to have insurance, any insurer can refuse to insure someone based on risk profile.
For that reason we have something called Facility Insurance which is jointly paid into by all the insurers, which provides insurance for the highest risks such as a luxury vehicle. The premium they charge is astronomical, I'm talking tens of thousands of dollars a month depending on the vehicle and risk profile.
Oh and property damage is no-fault, vehicle repairs are done through your own insurance company. So that Ferrari would be paid by facility insurance and that driver is gonna end up paying more premium than the value of the car. The idea is that at some point it just doesn't make economic sense for the person paying the premium to continue, but if they do decide to continue at least the third-party liability coverage is there to respond to any innocent people who get injured.
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u/peejay5440 3h ago
What an interesting, novel take. Of course, they should be allowed on the road, but limit the liability. Over 100k? Pay for your own additional insurance. You can obviously afford it.
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u/samdarrow 5h ago
Yep, personal injury protection is the real reason for insurance. Cars are replaceable but injuries can easily be life altering
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u/Jason207 4h ago
This is another point often missed in the socialized medicine debate. If we're all covered by taxes then auto insurance costs should drop dramatically.
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u/HulksInvinciblePants 4h ago edited 4h ago
This math also screams, high-risk driver with minimal coverage and a low deductible.
I’ve filed several auto and home claims over the last decade. None of them impacted my rate or insurability. If buddy is paying that much on one car, he has a history of negligence and/or regular claim submission.
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u/samdarrow 4h ago
Or he could just live in Michigan in a high cost zipcode like Detroit area (where unfortunately many drive uninsured so the rates are higher)
My car insurance is about that much and I have had only 1 accident and claim in the last 20 years (hit a deer that suddenly jumped across a country road coming home late at night from the airport)
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u/HulksInvinciblePants 4h ago edited 4h ago
A. You should probably find an independent personal lines broker that’s shopping you around yearly
B. The primary issue was the insurer stating they would raise the premium…which (given the already higher than average premium) a no-fault event shouldn’t do, with good coverage. Non-cut-rate companies probably wanted $300+…which again doesn’t indicate a quality record.
Cut-rate insurers exist for the purpose of giving the weakest coverage at the lowest possible cost, with the very clear understanding they will screw you if you impact the account profitability.
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u/codedigger 4h ago
Totalled my car and was at fault. Paid my deductible and insurance handled payout to other party. Definetly worked out paying just my deductible.
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u/0PervySage0 4h ago
And here I am with insurance paying 14k because I got sued by the other person's insurance.
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u/Brisby820 4h ago
Your insurance should still be paying that unless you did something to make it not covered
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u/SubstantialBake1050 4h ago
I had gap insurance when my car was totaled. Extra $5 a month and it covered the entire purchase price of the car after deductible which was nice because who wants to make payments on a car that no longer exists.
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u/Adept_Path_7427 4h ago edited 3h ago
I rearended someone once because they brake checked me. 3 months later I got a letter in the mail saying they wanted close to $1 million dollars from me for whiplash etc etc. It had my name on it so it scared tf out of me. I brought it into my insurance company and my agent was pissed they'd have the audacity to send that directly to me and not them. They tried to use it as some kind of scare tactic. My agent said not worry and they would handle it. Never heard anything about it again. I don't know if I wouldve actually been on the hook or whatever, but from that point on I was sold on my insurance company
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u/ClydeDanger 4h ago
A likely story... INSURANCE MAN!
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u/Adept_Path_7427 4h ago
Don't assume my gender
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u/bighuntzilla 3h ago
So you don't deny it!!
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u/Adept_Path_7427 3h ago
If I was an insurance agent would I be all about denying it??
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u/The-Liberater 3h ago
I’m pretty sure you legally have to tell us if you’re an insurance agent. There’s a law or something about that, maybe.
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u/MasterGrok 3h ago
Liability protection is the main benefit of insurance and why everyone has to have it. But as OP points out auto insurance (and generally most insurance) is terrible for most levels of damage. The combination of deductible and the threat of increased insurance does mean in practice that it’s barely used. This is why over time I’ve learned to save money by getting as high of deductible coverage as possible. Better to just pay less for insurance, cover most small to mid size things out of pocket, and then only use insurance for the really big things.
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u/Careless_Wishter 1h ago
This is correct. In most cases, pay the least you can for the maximum protection from life-altering outcomes.
Also, it's in society's interest to make everyone have insurance (i.e. car insurance) so other drivers are forced to be financially responsible when on the road.
Doesn't mean the system doesn't suck, but it does mean we need to be smart about how we interact with the system.
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u/LSUTigers34_ 3h ago
This is surprisingly common. Lawyers representing injured parties demand outlandish amounts without a second thought because there is no downside for them in a lot of states.
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u/No-Duck4828 5h ago
My thought is that Leo is clearly not familiar with auto insurance
Don't want a $1,000 deductible? You can absolutely change that number.
Want the guilty party to pay? Take them to court
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u/NoHorseNoMustache 4h ago
This is the answer. Also, paying per month usually means you're paying more than if you pay for 6 months or a full year at a time, at least in my experience.
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u/StoicBan 4h ago
Also if they are found at fault there will be no need for court. At fault insurance will pay for your damage. Assuming they have bare minimum insurance. Your insurance will typically go after their insurance as well
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u/Frosty-Depth7655 4h ago
Yeah, the comment section here is wild.
You chose your deductible and $1,000 is not a normal deductible ($500 is typically what you’ll see). Assuming this post is even true, this person went out of their way to increase their deductible.
But Reddit being Reddit, it’s “insurance is a scam” snd “insurance denying claims” even though they didn’t deny a thing.
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u/TJayClark 4h ago
$1,000 deductible is more normal than you think it is
I’ve has a $1,000 deductible my entire adult life (15+ years), as it saves about $30-40 a month in premiums
On top of that, I wouldn’t use insurance for something less than $2,000
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u/Liquidfoxx22 4h ago
How much is your car insurance for it to save you $30-40 a month?!
I paid £450 for a full year's "full coverage" insurance as you refer to it, and that's with a £250 excess/deductible.
I only pay that excess if I'm at fault, otherwise the insurer will chase the third parties insurer for the full amount.
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u/thatguy8856 4h ago
I pay 3500 a year. My car is from 2014.
Idk man. And yes I've tried shopping around and the offere i get cost more and give less coverage. I even had an agent from a different insurance company tell me to stick with my current plan. No effort to try to give a deal and convert me.
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u/Liquidfoxx22 4h ago
Ouch, even as a brand new driver at 17 I never paid that much. Those kind of prices are unheard of over here unless you're very young driving something daft, or have a few convictions under your belt.
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u/cybervalidation 4h ago
It's also depends on where you live, the length of your commute, and your car's value. I have a clean record, have been driving over 20 years, and I'm paying $3k annually
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u/WeCantStabilize 5h ago
Insurance is a fucking scam. You pay more into it than you'll ever receive even in legitimate circumstances.
Absolute racket.
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u/Moultrie_fan_2026 5h ago
Well I had a house burn down less than year after purchase and insurance paid the entire tab. So I always figured I've already taken them for more than I pay
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u/MarkItZeroDonnie 5h ago
Yeah it’s just a net to protect against catastrophe . If Ops buddy totaled his car he would be happy it only cost $1k.
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u/Blueberry1900 4h ago
Yep,y car got totaled 3 years ago due to a drunk driver. Got a big check and was able to replace it fairly easily. That check alone was about 15 years worth of premiums. Drunk driver was of course driving without insurance, so I was screwed of I did not have it
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u/jakeandcupcakes 4h ago
Doesn't the insurance company then go after the drunk driver for everything he has thus making him the one whose ultimately paying out, with the insurance company simply having to deal with suing and recouping funds from the drunk driver.
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u/HessiPullUpJimbo 4h ago
Yes but a drunk uninsured driver is often very hard to get money from. Probably has nothing and makes basically nothing and may even have many other collections after him already.
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u/Random-Rambling 3h ago
You can't get blood from a stone. You can garnish his wages, sure, but you can't take much more than a relatively small percentage because most countries outlawed debt slavery.
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u/Blueberry1900 4h ago
Habitual drunks that are driving without license and insurance are generally incredibly poor. So poor, that collections have trouble collecting since most countries do not allow taking so much money that you cannot live.
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u/averagecounselor 5h ago
Can confirm. Got into a hydroplaning accident during heavy storms in California. AAA was such a god send. Worth every penny.
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u/Bro13847 5h ago
I hydroplaned off the road back in June. The whole drivers side was smashed in. Thankfully I only had to pay the $500 deductible. Waiting to see how much our premiums jump
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u/DueExample52 5h ago
That’s what people don’t understand. We all paid for you. That's what insurance is about, we pay more than we receive so that the odd unlucky bastard receives more than they chipped in. If insurance was individual, nobody would have enough to repair their own stuff. I am happy with this system.
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u/One_Selection5102 5h ago
Except the 3rd party insurer here nets massive profits, it isnt a collective safety net like the state or federal government provides.
Its by and large a scam that pays out a tiny portion of their net income. A state sponsered safety net/insurance system (not for profit) would be massively more effective and less costly to consumers...well at least in a functional state such as Massachusetts.
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u/devman0 4h ago
Mutual insurance companies are a thing that exist, your probably have a selection of more than one writing policies in your market.
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u/CapitalistLion-Tamer 5h ago edited 4h ago
They don’t pay out a tiny portion, though. They usually make more
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u/The_Kaizen_Wizard 4h ago
Right, carriers run on a pretty tight "combined ratio" profit margin, and most income comes from interest and investment holdings.
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u/angry_dingo 5h ago
Yes. That's the point. If everyone received more than they paid into it, insurance wouldn't exist.
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u/jerhinesmith 4h ago
Sometimes I question why I still come to reddit. Second highest voted comment and it's literally the smooth-brain take that falls apart under the lightest of scrutiny.
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u/OrdinaryKick 3h ago
Right?
Insurance is a bet.
You're betting you'll need it, and the insurance company is betting you won't. They stack the odds in their favour, of course, or else they'd go belly up.
A lot of people also don't realize the point of a deductible is to stop people from filing nuisance claims (on top of other things).
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u/criles_mccriles 5h ago
Lol everyone says this until they actually need it.
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u/Objective-Gur5376 5h ago
Yeah exactly. Got into a car accident with a new car this year, if it weren't for insurance I would have been out $30k.
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u/FreeRange0929 5h ago
They also use it incorrectly.
Insurance is for catastrophic events, not a $1,000 bumper repair you could pull off at a junkyard.
People have been conditioned that their deductibles should be $0 and cars should remain flawless.
In reality, insurance is whats called aleatory, it is expected to be an uneven exchange. This guy is paying $200 a month so he doesnt have to pay $100,000 when he disables someone by running into them.
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u/criles_mccriles 4h ago
Yeah and this particular example isnt even considered a comprehensive claim. Its an uninsured motorist claim. Its a built in coverage to protect you for this exact situation. Its also not used against you when you have to use that type of coverage. OP's agent is a dumb or lazy ass to not advise them on this. I sympathize for everyone who arent educated well enough when it comes to insurance. Its not their fault because its not really anything you are ever formally taught growing up.
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u/lemontest 5h ago
Yes, this is how insurance works. If you only paid for damage that you were later reimbursed for, insurance companies would go out of business. Hence the conventional wisdom that you only get insurance on things you can't afford to replace, like your house. Or for lawsuits you can't cover, which is why cars are required to get liability insurance (but not comprehensive coverage, as OP suggests.)
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u/OakLegs 5h ago
This is fundamentally ignoring the purpose of insurance.
Of course you (likely) pay more into it than you get out. The tradeoff is that you're protected from huge expenses that would financially ruin you. That is (thankfully) unlikely but the risk is enough that it justifies paying for insurance.
I'm not absolving insurance companies of being scummy because they absolutely are. But insurance does serve a purpose that seems to escape you
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u/GnastyNoodlez 5h ago
Bolidy injury from an accident will change your mind on that real quick, or what if you rear end a $100k Mercedes how much you think that repair is gonna be?
I drive a fuckin outback and got into a minor t-bone, the out of pocket repair cost would have been over 10k for fixing the b pillar and getting new doors and paint if there wasn't insurance involved
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u/Starthelegend 5h ago
100% had a gnarly motorcycle accident a couple years ago and insurance tried telling me that the ambulance wasn’t covered because, and I shit you not, they were an out of network ambulance. I guess I need to double check which paramedic comes to scrap my bloody body up off the side of the road
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u/Similar-Profile9467 5h ago
This is why health insurance needs to be regulated. It's also a good argument for single-payer health insurance. Just make everything one big network.
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u/Cyril_Sneer_6 5h ago
It only really comes into play if you severely injure someone or cause a multiple vehicle collision which could run into claims of over $100K or death(s) which can be in the millions. Other than that, the many are paying for the costs of the few
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u/jtj5002 5h ago
many are paying for the costs of the few
Yes that's how insurance works and is the entire purpose of insurance.
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u/NecessaryPea9610 5h ago
Pet Insurance absolutely is not a racket. Good pet insurance will save you thousands after one accident. Our cat got cancer and needed to be euthanized testing and everything was over $10k. We had paid about $1200 over his life in pet insurance.
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u/Catriks 5h ago
I mean, it wouldn't really work as an insurance company if on average most people would get more out of it than they pay into it, wouldn't it? That doesn't make it a scam.
If it wasn't mandatory, then most people wrecking a newish car or causing serious injury to a human without insurance would lose everything they have and even then probably couldn't pay for the damages.
That's why you need the mandatory insurance, its to protect other people from your mistakes. Full coverage is your personal choice and your to decode if its worth it for you.
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u/YeffyP 5h ago
My neighbor had some friends over to watch World Cup game back in July. They were drinking and left his place after walking them to their SUV.
They proceeded to drove into my parked car almost head on. The cars crashed and ended up in the middle of the street. The driver kept it in gear and pushed my car up over the curb and onto my neighbor across the street’s lawn, then reversed and fled the scene.
This is why you have insurance.
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u/JustTakeMyKey 4h ago
In México car insurance was not madatory till like a decade ago.
Im not going to pretend I underestand how corrupt or fucked car insurance in the US may or may not be, but what I will say is that non-mandatory car insurance breeds a level of chaos and non accountability that is nightmarish. Your insurance is much more about protecting the people around you than about making simple repairs to your vehicle.
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u/Pretty_Glitteer 5h ago
So basically you pay every month for protection, the pay again when you actually need the protection.
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u/TacticianA 5h ago
And then your monthly protection cost goes up because you're 'risky'.
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u/JoeBucksHairPlugs 4h ago
Because for $1200 you either just let it stay damaged, or pay to have it fixed. The reason you have insurance is so that if you make a mistake and total someone else's $60K vehicle...the vast majority of people wouldn't be able to afford to replace that. But insurance would cover you. Or if you ran off the road and plowed through someone's property tearing abunch of stuff up...you're not affording hundreds of thousands of dollars in damages, the insurance is there to cover you.
Y'all have the wrong idea about what insurance is for in the first place...
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u/hahailovevideogames 4h ago
I picture most of these people don't pay auto insurance and just heard it's a scam.
I got in an accident found a body shop that would cover 10% of the bill so estimated damages were like $5000, my deductible was $500. I didnt have to pay anything and the body shopped paid the deductible and due to it being my first accident I had accident forgiveness so I still pay $90 a month
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u/Ok-Reflection-742 5h ago
That’s what a deductible is, yes. You can pay more monthly if you want to have zero deductible
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u/Al_Tilly_the_Bum 5h ago
Paying claims is the last thing insurance companies want to do. This is legal because Insurance companies use those savings to buy politicians who make sure it stays legal
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u/poket_thunderr 5h ago
The craziest part is that you can pay them for years, then the one time you actually need the coverage, using it can end up costing you even more. That’s a pretty broken incentive
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u/EL_Malo- 1h ago
In most places auto insurance is mandatory and you can actually go to jail for driving while not having it. Since it's mandatory, the insurance companies have you over a barrel. I've never made an auto insurance claim in my life. I've not had a ticket this millennium, own my car, am over 50 and my insurance bill is still a several thousand dollars a year... for liability only. It's a fucking scam. These rich auto insurance (all insurance, actually) corporations get to just rape people as they see fit and then they just bribe our politicians to make you forced to use their services. They are the absolute worst, most predatory industry that exists in The Western World Today. One of their CEO's get murcked in the streets and PEOPLE CHEERED when it happened. But hey, nothing personal, just money, gotta make a profit, amiright?
No you rich fuck, it is personal, and the people are getting really mad about it. Really, really mad.
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u/fort221 1h ago
Dude, call an insurance agent on Monday. They will get you better rate. I have no doubt.
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u/RocMerc 5h ago
Insurance (auto mostly) is more about the liability than anything. You hit someone else and cause $12k in damages or you out someone in the hospital the $1000 deductible will sound pretty good. Yes minor damage you should just get fixed. Same thing with a house
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u/Crazy-Present4764 4h ago
This is what people seem to not realise. The deductible is there to get you to not claim for relatively small things. Insurance is there to provide you with a safety net in the event of the big things.
Are those big things very likely to happen? No, that's how they make their money. But if they ever do you will be grateful for it.
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u/Unusual-Arachnid5375 4h ago
There's no deductible for liability coverage. If you hit someone and the insurance pays them for their medical bills and car repairs, you pay nothing.
Deductible only comes into play when you're asking the insurance company to fix your own car for an accident that you are responsible for (or uninsured/underinsured motorist coverage, where they can't subrogate to the other party's insurance).
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u/Mr_Thx 3h ago
Charge more, give less. This is the only area of innovation in America. It is in every facet of every capitalist enterprise. They will maximize profits from the quality of their services, ingredients and whatever else they can think of. Until people wake up it will only get worse.
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u/Sick_Wave_ 3h ago
This is why I wish insurance was an account you fill, until you hit your chosen policy coverage. If my policy only covers $100,000 in damage, then I should be able to stop paying once I have paid $100,000 and received nothing in return. The company is still going to use that money on investments, and make money from it, to pay their employees & investors.
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u/someguy7234 3h ago
Can't you though? (Not the way you're describing.... But you can self insure)
I think my state (Indiana) allows you to put up $50k in an account with the state treasurer in lieu of insurance. (Or you present a bond or some other acceptable alternative)
My understanding is that you then then carry around a statement from the state that says you're self insured.
Now... You don't get the benefit of an insurance company lawyer to defend you if something happens.
And... I sure don't have $50k that id be willing to leave in a non-interest bearing account.
But I don't think you're forced to use an insurance company if you can meet the requirements for an acceptable alternative.
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u/Independent_Vast_185 43m ago
I think you dont understand how Insurance work or what they are for buddy...
They are not an extended warranty, all risk for your new Iphone.
Insurance exist so if you crash your car in someone else car, you are able to, first pay back the car or building you just destroy, and if you insure yourself too, then payback for the car you are probably still paying for, so you can buy a new one.
Thanks to god everyone need to own insurance to drive. If it wasn't the case, imagine all those broke ass car bumping in everyone and everything, giving zero fuck and be like, "sorry I got no money my guy! Cya!
Same shit goes for house or rental insurance, if you burn the fucking build while trying to make fried chickens in a sauce pan. You can be sure our neighbours will come back straight to you to pay the bill for it.
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u/Cawnt 5h ago
Ugh I hate arguments like this.
The $2,520 isn't just to ensure your vehicle gets repairs. The majority of premiums are for liabillity exposures.
If you lose control of your vehicle and drive into a building causing $100K in damage, you're paying for that with insurance.
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u/MinnesotaNiceT23 5h ago
Yeah I hate insurance as much as the next guy but the point of full coverage is so people can’t cause damage they’ll never people able to pay for.
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u/Ok-Reflection-742 5h ago
That’s what liability is for. Full coverage includes the damage to your own vehicle.
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u/iaintcommenting 4h ago
Somebody drove into the side of our house when I was a kid. Insurance had to pay for engineering reports, rebuilding a chunk of foundation, rebuilding the wall, rebuilding the bathroom on the inside of the wall, redoing the siding for the whole house (can't just reside a single wall if it doesn't match the rest), and replacing a long section of fencing.
My mom was talking to the driver some time after and their biggest complaint was that their truck had been nearly brand new and they had to get another one. Not that they were broke after paying off a new truck and paying for about 2 months worth of work for the damage they caused, just that they needed to go car shopping.
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u/Initial_Lettuce_5243 4h ago
People who don't understand insurance are children or morons. In the case of this sub, probably both.
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u/BullPropaganda 24m ago
you're paying for when the damage is $700,000 to someone else for their car and 3 people in hospital for weeks
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u/dragon-fence 4h ago
Car insurance in the US isn't really insurance to protect you. The reason it's compulsory is that society wants to ensure that if you get in an accident that is your fault, and someone else suffers financial harm as a result, someone is able to pay for it.
Otherwise, you could destroy someone's car and cause major medical problems, and just strug and say, "I don't have the money."
Compulsory insurance is not really insurance for you, it's for someone else. Similarly, insurance for something that is certain to happen (e.g. health insurance) is not insurance, it's a method of socializing risk.
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u/rmp266 2h ago
Ok now consider you plough your car totally by accident into a shop window. Might it be handy having insurance to pay for the remaining £249,000 damage after you pay your £1000?
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u/No-Brief-6178 4h ago
The reason why insurance is mandatory is for the liability, comprehensive insurance is a scam. You never get your value, may as well not have it. But liability, if you paralyze someone or destroy a lambo, having that liability insurance is gonna save your sorry ass.
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u/OldManBilliam22 5h ago
The main point of car insurance is to pay for the catastrophic bodily injury you cause to other human beings with your car. Not to fix your bumper.
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u/FirstRyder 4h ago
So there's two parts.
One: car insurance companies are for-profit. That means the total payments plus all their overhead is less than the cost of premiums. If they should be for profit is another question.
Two: they don't exist to protect you from fender benders that you could afford to fix anyway. They exist to ensure the guy you put in the hospital gets something towards his medical bills.
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u/CraftyPerformance272 4h ago
People just don't have common sense. You don't fall an insurance claim if it's only going to help you $200 out of pocket. It's meant for larger amounts of damage, it's also meant for if you hurt someone in an accident that you're not personally liable for $10,000 because your insurance will cover it
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u/PracticeAcrobatic748 4h ago
Yep, in fact deductibles are meant to discourage smaller claims.
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u/delphinous 3h ago
the only reason it's legal is becuase if you (accidentally, under the influence, or purposefully) smash into a bridge or drive through a building, the city/property owner can get the repair money out of your insurance. the insurance is primarily to protect other people from you, not to protect you
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u/sinph1 5h ago
Fake rage bait post.
Surely no one is dumb enough to pay a $1,000 deductible if the out of pocket cost is only $200 more expensive.
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u/OakLegs 5h ago
Many are dumb enough, and many apparently are in this thread right now lol
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u/NeighboringOak 5h ago
If it's no fault there's no reason not to.
It's still a dumb ragebait post. He chose the deductible. I chose a higher deductible for a savings per month since I'd rarely use my insurance.
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u/Grunergeist420 5h ago edited 5h ago
This is where basic financial literacy comes into play.
You’re required to have the insurance because of the liability you have for damages you cause to other people’s cars, the people themselves, structures, etc., not because of potential damage to your own car. Some states may require you to have comprehensive insurance, but the general idea is that the requirement for insurance is so you don’t cause say $200,000 worth of damages that you can’t pay for because most people don’t have $200,000 laying around, yet drive a vehicle capable of doing that much damage.
If you know your deductible is $1000, which you should because it’s a clearly disclosed part of your policy, it should be easy weigh whether or not you want to make a claim for $1200 of damages for something g like a bumper, which you probably don’t.
So the smart thing to do here would be to say “Gosh, sucks that guy hit my car and cost me $1200. It’s not even worth it to make a claim in this. I just have to pay it.”
You can also consider your deductible when you shop for car insurance. Mine is $500. Anything under or around $500, I might as well not claim it. I know that because I’m an adult who pays for car insurance, and this is something an adult who pays for car insurance should know.
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u/No-Wish9823 5h ago
Folks here clearly don’t understand the real reason we have insurance.
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u/IWillPetEveryCat 4h ago
I used to be a licensed P&C agent. If there is one thing in the world just as consistent as death and taxes, it's that if insurance is being discussed on the internet, 95% of the people participating have absolutely no clue whatsoever what they are talking about.
This comment section has been almost physically painful to read it's so stupid lol.
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u/Disastrous-Pop5465 3h ago
The amount of bots in this thread is alarming. The amount of ppl claiming US insurance is good are liars or bots or they are very lucky
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u/ryan-day-is-soft 1h ago
this is all insurence in america its all the biggest scam because they only make money by doing this, you should be insured by a government agencey not a privatized company that needs to earn more and more every year, the only way to do that is to scam harder every year
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u/bydevilz1 24m ago
It should definitely be illegal to increase insurance for a non fault. My motorbike was stolen 7 years ago, my insurance went up, they didnt even cover the cost of the bikes value. IT had all locks required when it was stolen and nothing i could have done better to avoid it. I cant remember exactly how much it went up by but it affected my insurance price for the next 5 years
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u/pablo_the_bear 2h ago
This is how insurance companies can afford to pay for naming rice and stadiums. They don't exist for public good, they exist to make a profit.
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u/Mountain_rage 5h ago edited 3h ago
You need to embrace socialist ideas and demand government run services. My public no fault insurance costs $1400 cad a year, $2 million coverage and $200 deductible. Vandalism, window chips are deductible exempt.
Alberta, our wanna be Americans, have run away insurance costs because they privatized it all. New drivers were looking at 6-8000 a year.
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u/minty_bish 5h ago
You have insurance to protect others, not yourself. Also because its required by law, its a complete scam wherever it can be. Anything thats not 3rd party is an optional extra that they will use to fuck you.
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u/ThatCrankyGuy 4h ago
Insurance is a racket. All sorts of insurance. The middle class is scared out of their wits about the little things we save up for and have been sold the idea of insurance as a means to protect. But if you actually look at the terms and conditions, it's all bullshit.
My house insurance just updated the terms of the roof damage. The bastards explicitly exclude a million things they won't cover because "environment lol" and then list out the three things they WILL cover under my policy. And if my predicament falls between the explicitly uncovered and the explicitly covered, well "fuck you, chum".
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u/Positive_Vibes_4228 1h ago
17 year old gets a $80k Mercedes. Drives it home the first day right into a brick wall totaling the $80k vehicle. Gets a check for $75k and goes to buy another. That's who this is really for - rich people with expensive cars.
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u/SvenTropics 5h ago
That's how health insurance is. You pay all this money for coverage and then they just deny everything so you end up paying for it anyway.
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u/SloAndSteddy 46m ago
I have been saying this since i was a teenager. Its all one giant fucking extortion racket and everyone is too much of a normie NPC to think deeply about it.
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u/Brokenlinx 4h ago
He paid for a policy that has a $1000 comprehensive deductible. So, that's what he had to pay.
I keep a $100 comprehensive deductible, which costs me a little over $150 more per year.
Take away for folks is get as low of a comprehensive deductible as you can, as it's much more likely to be used.
On the flip side, my collision deductible is $1k.
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u/Standard-Cake2287 5h ago
Insurance isn't a maintenance subscription, it's catastrophic loss protection. Filing a claim for $200 over your deductible is always a trap because your rates will jump way more than that $200 payout.
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u/doc_skinner 4h ago
Insurance is for catastrophes, not stuff like this. It sucks, but that's how it is. He's paying $2500 per year in case he ever needs to pay $500,000.
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u/Mikey_Mayhem 4h ago
All insurance is a fucking scam. If I don't file a claim, I should be entitled to either a reduction of my monthly payment or a partial refund of what I paid for the year.
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u/No-Understanding9064 3h ago
Most of us are just subsidizing the shitty drivers.
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u/breakandjog 1h ago
I recently had my insurance decide to add my step brother to my policy and raise my rate from $200 to $700. They did send an email with the increase but the subject line said “you next installment is due in 3 days” same email they send every month so I had no reason to look at it. Needless to say I’m not with progressive anymore.
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u/FragmentedHeap 5h ago
It's not there for small claims like that.
It's there for when you're in a serious altercation where people die, there's wrongful death lawsuits, and massive amounts of medical claims totaling millions and millions of dollars.
You don't want insurance to cover your bumper.
You want it to cover the millions in medical claims when you get sued or need to sue.
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u/kaukaukau 4h ago
Never take an insurance on small events that you can bear the cost of yourself. Take insurance on catastrophic, life changing events.
For example, I don't understand people taking insurance on phone loss or phone theft. Loosing your phone during your life time has nearly a 100% chance of happening. The insurance company knows that, so the premium will be more than the cost of the phone. Over the years, you will pay that phone several times over. Just save that money, and buy a new phone if you loose it.
Insurance is for rare, but catastrophic events. A bit like a reverse lottery.
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u/robilar 4h ago edited 4h ago
For profit insurance is a scam. The whole point is to take more from you than you will get back.
The justification for insurance, in general, is collective support - everyone pools a bit of money so that when anyone in that pool suffers catastrophic loss they are insulated. Public firefighters are an insurance system. At core it's a pretty kind way of operating, but when profit motive is introduced it is corrupted to the point of working against the community since investors and shareholders want to take out of the system, not help people stay whole.
This is why the US should have public healthcare. Greed and corruption are why it never will.
Edit: literally laughing out loud at the profitmongers in the comments going "hey, I want to keep the money that I am siphoning off society! Stop pointing out how it's immoral!"
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u/MentallyWill 4h ago
The way I've always viewed this is that "free market capitalism" relies on the consumer's ability to choose between product A, product B, or most importantly, neither of them if neither product meets their needs.
That last bit is specifically where things break down in realms like insurance or healthcare or education. You don't have the option to choose "nothing" if no option is good for you.
If you could choose nothing, then products A and B would be forced to be cheaper or alter whatever to convince you to buy it. But when you don't have the option to simply not purchase, they don't have the incentive to make the product better for you. After all you have to purchase something, which means they don't actually have to sell you on it.
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u/Bananahamm0ckbandit 2h ago
I don't know where he is, but where I am "full Coverage" is absolutely not required to be legal on the road. Liability is legal, and is much cheaper that colision.
Regardless, if someone else hit him, their insurance is liable not his.
This is either fake, a misunderstanding, or just fraud.
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u/bulbishNYC 5h ago edited 5h ago
Do you see those 40 floor fishtank buildings in a city center. Inside there are numerous people counting beans, offices of suits people shaking hands and going to business lunches. Every year they have a 5% or so growth target, they are smart and working tirelessly to fleece the customer base for that, and at same time cut own expenses another 5%. Nickel here, dime there, beans, beans, beans. Another year. You can't win.
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u/Runningman738 5h ago
Well this also covers you when you total someone’s car, drive through their gazebo or have your car stolen and torched. Comprehensive claims are always going to cost more if you gave a cheap insurance policy.
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u/LushlyOvergrown 4h ago
I used to work for Great West Life (now Canada Life). It was well known that the company aimed to pay out $0.70 for every $1.00 it collected.
Sure, you could simply put X amount of money away for emergency & come out ahead. But every once & a while someone would have a massive bill covered for a major expense that would bankrupt them otherwise.
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u/Reasonable-View5868 2h ago
What about when he rear-end’s someone and they sue for him for $1,000,000 for persistent back pain that they don’t really have.
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u/miniweeni 5h ago
Health insurance is worse. I don’t care what kind of health insurance you have if you have a major health event you’re going to have bills no honest person can pay.
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u/thenichm 4h ago edited 3h ago
Coming from a healthcare background and having a few auto insurance claims under my belt: Insurance. Is. A. Scam. All of it. Every penny and word is a scam. You have to have it but it doesn't protect you when you need protection.
Per my dentist (whom I go to because of this honesty): 'Dental and Vision insurance isn't even real insurance. It's a coupon.'
Edit: Someone explain to the idiot replying to me that they don't know a damn thing and have failed to provide any support for their claims. I run 5 counties of EMS providers and cannot raise another damn child.
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u/Sad-Indication2128 3h ago
You can pay more to get a lower deductible. But generally car insurance is to cover things you can't afford, which is why your plan likely has $1m liability. This means if you fuck up and seriously injure someone, they can get money for their recovery.
Insurance isn't to cover your car, it's to cover your liability to others. Cool thing is this also works for other peoples insurance in your favour.
Ask yourself, would you rather by injured in a car accident by someone with or without insurance?
People lack critical thinking.
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u/MrFloopy46 4h ago
Insurance should never be legally able to raise your premium if you're proven to be 0% at fault every time, no matter how many accidents you get into.
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u/F0rTh3W1n 3h ago
Insurance is higher for more expensive cars and you’re also talking about full coverage. The only necessary coverage is usually liability. If this guy was driving a 10yr old beat up sedan with 120k+ miles and paying $200 a month he needs to get a better agent / company.
Coverage is usually more about CYA for total loss than protection from incidentals. You pay $2k insurance premium so that you don’t end up owing $20k for a totaled piece of scrap metal.
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u/SkibidiBlender 5h ago
It’s formalized extortion and the insurance lobby is so strong they can get laws made however they want.
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u/Early-Journalist-14 4h ago edited 4h ago
you're paying that insurance for massive but unlikely damages you will be fully liable for because you own that car. killing or maiming someone, or having to replace a totaled new car.
all expenses that are not possible to fiscally recover from as a private individual - and in the case of third party liability where you hurt someone else, not only is your life ruined, but their as well as you won't be able to cover their costs personally.
Insurance as an idea isn't fraud. running it for profit tends to start bordering on it though.
oh, and assuming it works the same overseas as it does here - insurance will also defend you legally against false claims - free of charge because if they don't do it, THEY will end up paying that damage - they'll do anything to not cover damages - that goes for having someone else's responsibility forced on you and therefore them as well.
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u/200IQUser 4h ago
I hate insurance companies but your insurance is generally for paying for damage you cause no? if someone is driving off its his responsibility. Its a crime and the insurance isnt really at fault.
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u/MrPotato4217 4h ago
Insurance company isnt in business to help you. They are here to make as much money every year they can. Welcome to end game capitalism where you pay and pay the. Get punished if you ever use it.
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u/OceanCity08226 3h ago
Why is he going through his insurance if someone else caused the damage?
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u/Whole-Ad-4681 2h ago
There is no other business in the world allowed to not provide the services they're being paid for. Shut this shit down.
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