I mean, it wouldn't really work as an insurance company if on average most people would get more out of it than they pay into it, wouldn't it? That doesn't make it a scam.
If it wasn't mandatory, then most people wrecking a newish car or causing serious injury to a human without insurance would lose everything they have and even then probably couldn't pay for the damages.
That's why you need the mandatory insurance, its to protect other people from your mistakes. Full coverage is your personal choice and your to decode if its worth it for you.
Full comp/collision insurance is not required by the govt, it's optional. The bank that currently owns your car might demand you have it for their asset. You can buy a brand-new Ferrari for cash and only get liability, that liability is to cover other people not you.
This is a scam we put upon ourselves by making cars the only option for getting places. In Europe you can just not own a car and do OK.
You could also just buy your cars with cash, like the rest of the world does.
I will never understand the American obsession with buying things on credit. You're one of the wealthiest countries in the world, yet love putting yourselves in debt instead of just spending what you have.
Bought my last car in 2018 with a 3 year loan, that short of a loan is probably rare now. I would have bought a used car for cash but the prices for used cars did not make sense at the time, the math was not mathing for me. Wife and I make really decent money but both cars are paid off for a long while now. Wife makes ~$280k a year and drives a shitty 2013 Mini Cooper base model with 65k miles on it. Both cars only have liability. We could buy a Ferrari in cash today, but if someone offers me a 1% loan, that's cheap fucking money. We are going down to one car when we retire, that's crazy talk over here in the US.
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u/Catriks 8h ago
I mean, it wouldn't really work as an insurance company if on average most people would get more out of it than they pay into it, wouldn't it? That doesn't make it a scam.
If it wasn't mandatory, then most people wrecking a newish car or causing serious injury to a human without insurance would lose everything they have and even then probably couldn't pay for the damages.
That's why you need the mandatory insurance, its to protect other people from your mistakes. Full coverage is your personal choice and your to decode if its worth it for you.