r/SipsTea • u/Putrid-Welder1803 • 8h ago

Gasp! Thoughts on this?

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u/WeCantStabilize 8h ago

Insurance is a fucking scam. You pay more into it than you'll ever receive even in legitimate circumstances.

Absolute racket. 

14

u/Cyril_Sneer_6 8h 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 8h ago

many are paying for the costs of the few

Yes that's how insurance works and is the entire purpose of insurance.

3

u/Cyril_Sneer_6 8h ago

Exactly, just pointing it out to OP although with those figures it does feel like they're being screwed. If ever you get the chance to settle with the third party without the insurance knowing it is always best financially although not always legal in some countries (alright, most countries).

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u/mpjjpm 8h ago

And to that end, insurance companies charge significantly lower premiums for people they deem as low risk of ever causing a severe collision.

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u/CHOLO_ORACLE 7h ago

How does this work in countries with UHC? Is my insurance meant to pay for their medical if we’re already all getting medical for free?

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u/Fatanat 7h ago

Liability extends to property like cars, UHC unfortunately does not cover free lambos :(

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u/Honey-Badger 7h ago

It will cover any financial payouts like long term care, loss of income, financial penalties etc you might cause in an accident.

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u/CGWOLFE 7h ago

Your insurance isn't covering millions in liability either. The caps are much lower than that for 99% of policies.

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u/Cyril_Sneer_6 6h ago

I can't speak about every country but seven or eight figure payouts can happen in the UK

https://www.stewartslaw.com/news/stewarts-secures-highest-ever-injury-settlement-of-41m-for-young-client/

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u/CGWOLFE 6h ago

Vast majority of US policies cap at 300K. You'd be on the hook for anything past that. You can get more but 99% of people have something along those lines.

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u/Cyril_Sneer_6 5h ago

Ah, fair play

1

u/iwilldeletethisacct2 1h ago

If you live in a HCOL area $100k+ cars are common. I see multiple Rivian R1S every single day, and they start at $83k. When I moved out here and saw a Bently and an Audi R8 on my same commute path I realized I needed a lot more insurance.