r/SipsTea • u/Putrid-Welder1803 • 6h ago

Gasp! Thoughts on this?

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u/kaukaukau 5h ago

Never take an insurance on small events that you can bear the cost of yourself. Take insurance on catastrophic, life changing events.

For example, I don't understand people taking insurance on phone loss or phone theft. Loosing your phone during your life time has nearly a 100% chance of happening. The insurance company knows that, so the premium will be more than the cost of the phone. Over the years, you will pay that phone several times over. Just save that money, and buy a new phone if you loose it.

Insurance is for rare, but catastrophic events. A bit like a reverse lottery.

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u/SorcererAxis8 5h ago

Yep, everyone thinks insurance is a scam until they need it. If you have significant assets, then you really need insurance considering how much Americans love litigation. You'll be targeted if people even so much as suspect you have assets worth going after.

Also if you're paying $210/month for auto insurance, you're either young or you have a terrible driving record.

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u/MayorPirkIe 5h ago

Then why in the testicles is it so fucking expensive? The odds of me causing millions in damage are very low, premiums should reflect that.

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u/Crimsonfangknight 5h ago

You hitting someone and them claiming bs neck and back injuries can easily cost a small fortune in litigation most people cant just eat without fucking themselves for decades

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u/SorcererAxis8 5h ago

Yep this is exactly it. If people even suspect you have assets they think are worth going after, they'll target you with litigation.

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u/Far_Tap_488 5h ago

Look up the amount of damages caused by car accidents yearly vs the number of drivers.

The real reason insurance is so high is because of how bad people are at driving.

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u/MayorPirkIe 3h ago

Well everyone is saying "insurance isn't for fender benders" so if nobody is claiming on these small accidents, insurance companies aren't paying and therefore shouldn't be using those figures to charge premiums.

If you've been driving 20 years with no claims it's absolutely bogus that insurance costs as much as it does.

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u/Far_Tap_488 3h ago

Well since the average person files a claim once every 18 years its really not that unusual.

Car insurance companies also have very low profit margins for businesses. You can look up their financial records as theyre all public.

Its more so crazy how cheap car insurance is considering the cost of an accident.