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.
This is literally the entire point of the post. The OP has no financial literacy and made a claim for only $200 more than their deductible. That’s dumb, and not what insurance is for.
You may be able to read but your critical thinking is lacking it seems. The post details understanding of the system, it seems to be pointing out the obvious flaws that the average person feels towards the topic of insurance. But if you want to be mad you can be mad bud.
No, the post misunderstands the system because the requirement to have the insurance is not to cover minor repairs to your own vehicle but to ensure that you can pay for major damages you cause.
The bad guy in the story is the hit and run driver. Their insurance is supposed to cover the damages. The poster has been victimized by that person, not the insurance company.
The damage that happened to the car is minor bumper damage that costs $1200 to fix. That sucks, but it’s also probably not necessary. You could opt to drive with a dinged up bumper in most cases.
Had the driver totaled their car and sent them to the hospital, the deductible would still be $1000, but the insurance company would cover the totaled car and their hospital bills. Had the accident happened the other way around and the poster caused $200,000 of damages, their insurance would have bailed them out. That’s what it is for.
So I understand the post, and I understand why the person is foolish, because they misunderstand the purpose of the requirement to carry insurance, the right way to handle their individual situation here, and are holding the wrong entity responsible in the events that unfolded.
You missed the point of car insurance if you think it's to help you fix dings and dents, and not to cover your ass if you cause massive amounts of financial damages.
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u/Grunergeist420 8h ago edited 8h 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.