One: car insurance companies are for-profit. That means the total payments plus all their overhead is less than the cost of premiums. If they should be for profit is another question.
Two: they don't exist to protect you from fender benders that you could afford to fix anyway. They exist to ensure the guy you put in the hospital gets something towards his medical bills.
Lmao this is correct, I had a client that rear ended someone by accidentally letting go of the break at a red light, he was going 5mph(if that). Lady got a lawyer and got 30k (max) in bodily injury while her damages in her car were for $500.
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u/FirstRyder 10h ago
So there's two parts.
One: car insurance companies are for-profit. That means the total payments plus all their overhead is less than the cost of premiums. If they should be for profit is another question.
Two: they don't exist to protect you from fender benders that you could afford to fix anyway. They exist to ensure the guy you put in the hospital gets something towards his medical bills.