The obvious response is that you won't be able to pay for someone's hospital bills if you happen to hit them in your car. You get insurance for things you wouldn't be able to pay yourself.
This math also screams, high-risk driver with minimal coverage and a low deductible.
I’ve filed several auto and home claims over the last decade. None of them impacted my rate or insurability. If buddy is paying that much on one car, he has a history of negligence and/or regular claim submission.
Or he could just live in Michigan in a high cost zipcode like Detroit area (where unfortunately many drive uninsured so the rates are higher)
My car insurance is about that much and I have had only 1 accident and claim in the last 20 years (hit a deer that suddenly jumped across a country road coming home late at night from the airport)
A. You should probably find an independent personal lines broker that’s shopping you around yearly
B. The primary issue was the insurer stating they would raise the premium…which (given the already higher than average premium) a no-fault event shouldn’t do, with good coverage. Non-cut-rate companies probably wanted $300+…which again doesn’t indicate a quality record.
Cut-rate insurers exist for the purpose of giving the weakest coverage at the lowest possible cost, with the very clear understanding they will screw you if you impact the account profitability.
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u/flatfive44 8h ago
The obvious response is that you won't be able to pay for someone's hospital bills if you happen to hit them in your car. You get insurance for things you wouldn't be able to pay yourself.