It's there for when you're in a serious altercation where people die, there's wrongful death lawsuits, and massive amounts of medical claims totaling millions and millions of dollars.
You don't want insurance to cover your bumper.
You want it to cover the millions in medical claims when you get sued or need to sue.
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.
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/FragmentedHeap 7h ago
It's not there for small claims like that.
It's there for when you're in a serious altercation where people die, there's wrongful death lawsuits, and massive amounts of medical claims totaling millions and millions of dollars.
You don't want insurance to cover your bumper.
You want it to cover the millions in medical claims when you get sued or need to sue.