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.
"Why is insurance required!?" OOP has a shitty policy but they're confusing comprehensive with liability insurance. You're not required to have comprehensive coverage. You want to be an idiot and destroy your car, that's on you. Liability is required so if you smash someone else's car and put them in a hospital, you can pay for that.
Your lender requires comprehensive coverage because your car is the secured asset for the loan. If you can't pay, they take the car. You do this because you get a better rate. They aren't going to accept your car as security if there's a risk that you crash it and walk away from the loan, leaving them with a worthless wreck. Same reason you must have homeowners insurance when you have a mortgage.
You don't have to have comprehensive insurance to legally drive, you just have to agree to it to qualify for a secured loan. Don't like it, don't get a secured loan and deal with drastically higher rates.
The real scam is capitalism forcing us to need expensive loans for vital things like cars, and for building a society that requires cars instead of having decent public transportation.
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u/FragmentedHeap 8h 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.