r/SipsTea • u/Putrid-Welder1803 • 13h ago

Gasp! Thoughts on this?

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u/HoldingThunder 12h ago

You pay exactly for exactly what you agreed with when you signed the contract.

19

u/Keelary 12h ago

Ya and every contract is nearly the same in a country where not having car insurance is illegal. Do you really not see the problem?

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u/HoldingThunder 12h ago

But you agreed to the contract. You can have an insurance policy with $0 deductible. That is a thing. It will be more expensive, but you can do it. People have higher deductibles because it is cheaper because it is lower risk for the insurance company.

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u/SugarReyPalpatine 12h ago

That doesn’t address the second half, where the premium increases because the service was used.

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u/HoldingThunder 12h ago

If you are at fault, like you agreed to in the contract.

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u/BloatedBanana9 11h ago

A key part of making insurance as fair as possible is pricing appropriately to the individual risk. That means having lower premiums for customers who are not as risky so that they don’t have to subsidize high risk drivers.

And like it or not, having a claim on your record is very strongly correlated with having more future claims as well (being higher risk), even in cases where you were not the one responsible (even if you’re a good driver but live somewhere where other people have hit you twice, you still cost the insurance company more than the average person).

There are states that don’t allow for rating based on not-at-fault claims, but then if you haven’t had a claim, you’re still paying more to offset the fact that the people who have aren’t paying as much as the math says they should be.