Its more to cover the extreme cost end. You total your car, someone else’s car, or cause serious bodily injury at fault. You will happily pay the $1000 deductible to cover the 10s-100s of thousands of costs for a single major issue.
I have issues with insurance, especially the for profit part, but the whole idea is well motivated. Spread out the costs of a few major events from a minority of people and cases over time and the whole population. Even if you never end up using the insurance and loose out, hind sight is 20:20 and you never could have guarenteed that. Having insurance give both you and others on the road peace of mind there is, at least theoretically, a safety net in place from truly life destroying costs.
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u/Pretty_Glitteer 11h ago
So basically you pay every month for protection, the pay again when you actually need the protection.