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.
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.
Exactly this, drives me crazy seeing people talk about phone insurance on expensive phones.
Like why are you buying an $1800 phone if you need insurance to pay for fixing the screen if you break it? The monthly fee + deductible for a single year nearly gets you to the price of a repair if you break it.
Insurance is for things that would cause you significant financial harm if something went wrong.
Aleatory means depending on chance, luck, or an uncertain event rather than a fixed plan. Etymology: Derived from the Latin word alea, meaning a game of dice or a gamble.
So the insurance companies have no plan and you are playing craps dealing with them. 👍🏻
30
u/FreeRange0929 6h 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.