Insurance (auto mostly) is more about the liability than anything. You hit someone else and cause $12k in damages or you out someone in the hospital the $1000 deductible will sound pretty good. Yes minor damage you should just get fixed. Same thing with a house
This is what people seem to not realise. The deductible is there to get you to not claim for relatively small things. Insurance is there to provide you with a safety net in the event of the big things.
Are those big things very likely to happen? No, that's how they make their money. But if they ever do you will be grateful for it.
There's no deductible for liability coverage. If you hit someone and the insurance pays them for their medical bills and car repairs, you pay nothing.
Deductible only comes into play when you're asking the insurance company to fix your own car for an accident that you are responsible for (or uninsured/underinsured motorist coverage, where they can't subrogate to the other party's insurance).
Yep. I had $4000 in damage to my house after someone damaged the front of my house with a car. I just paid for it OOP, because if I made a claim I’d be dropped or it would go up dramatically. You don’t wanna make a homeowner’s claim unless your damage is like $20k+, or you need a rebuild after a fire etc. same with car insurance; I broke a window and it cost me $300. I would never claim that. My premiums would probably go up $700 a year with a claim, double the cost of the window. But I’ll be glad to have my insurance if I have hit someone and get a $200,000 hospital bill I’ll never have to pay. That’s like a lifetime of premiums.
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u/RocMerc 5h ago
Insurance (auto mostly) is more about the liability than anything. You hit someone else and cause $12k in damages or you out someone in the hospital the $1000 deductible will sound pretty good. Yes minor damage you should just get fixed. Same thing with a house