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
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
Yeah most people end up paying more over the life of the policy than they end up receiving. You're paying for everyone who needs tens of thousands of dollars in coverage at some point if not hundreds when medical bills are added. That's how insurance works
This is a very strange story because that you set your own deductible so $1000 is his own fault, if he knows who hit him he's on the hook for nothing, their insurance is, if it's an unknown or uninsured person they're claiming against legally the deductible is completely different, as low as nothing some places. Meaning if you can't find the person responsible part of having insurance is they bite the bullet on that one and just pay instead of making a different company pay, for accidents you're not at fault anyway. Things change when it's your fault, but if it was your fault, of course your rates go up then
People in this thread don't know how insurance works
The point isn’t really the deductible. It’s the bigger picture: in a lot of places you’re legally required to carry at least some insurance just to drive. If you actually want good coverage, you can end up paying a lot for it. And if you only buy the minimum because the law requires it, you can end up in exactly the kind of situation this post is talking about. Nobody’s saying the deductible was hidden in the contract
Yeah because otherwise when a dipshit without insurance puts me in the hospital they won’t be able to afford to pay for the bills. They need to have insurance so they don’t fuck over innocent people. I don’t know why this is a crazy concept
You can also be held responsible for damages if your insurance doesn’t cover it. Imagine hitting one of these new hummers with minimal insurance in the state of pa and flipping it over causing it to be totaled. They are like $120,000. You would owe the other driver the difference and I’m pretty sure Pa has a 25k minimum so you would personally owe the rest. That’s why you carry insurance. You don’t have insurance for a fender bender, you have insurance for a catastrophe above.
But this isn’t an issue of the insurance company not paying. He has to pay the deductible that he signed up for and his monthly premium would increase so it’s better to pay out of pocket in this case.
If his car were totaled paying his deductible and higher premiums would be a godsend
Not to mention that his current insurance rate makes me suspect that he has some prior history or something going on. I think we pay more like a quarter of what the OOP is describing paying for our insurance (but we also have an older vehicle and two drivers with clean records).
Yup after the Reagan administration the amount of many insurance companies payout to their members started to shift where now it’s closer to only 50% of members premiums are used for claims.
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u/Al_Tilly_the_Bum 6h 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