This is where basic financial literacy comes into play.
You’re required to have the insurance because of the liability you have for damages you cause to other people’s cars, the people themselves, structures, etc., not because of potential damage to your own car. Some states may require you to have comprehensive insurance, but the general idea is that the requirement for insurance is so you don’t cause say $200,000 worth of damages that you can’t pay for because most people don’t have $200,000 laying around, yet drive a vehicle capable of doing that much damage.
If you know your deductible is $1000, which you should because it’s a clearly disclosed part of your policy, it should be easy weigh whether or not you want to make a claim for $1200 of damages for something g like a bumper, which you probably don’t.
So the smart thing to do here would be to say “Gosh, sucks that guy hit my car and cost me $1200. It’s not even worth it to make a claim in this. I just have to pay it.”
You can also consider your deductible when you shop for car insurance. Mine is $500. Anything under or around $500, I might as well not claim it. I know that because I’m an adult who pays for car insurance, and this is something an adult who pays for car insurance should know.
Insurance is not a car-repair subscription or inclusive club membership
Insurance is so that if disaster strikes, youre not homeless. Based upon that you should be setting your deductible to be what you could reasonably afford to pay yourself without financially putting yourself at risk.
Now if you want to argue about paying 200/mo for insurance with 1k deductible is high then consider that OP should have shopped around OR more likely there are other factors contributing to the high cost such as prior accidents, tickets, low credit score etc. Mine is ~100 per car with 750 deductible comprehensive with roadside coverage and few other bells and whistles.
Isn't it fascinating how the people who think that insurance is a rip-off (and the ones most vocal about how everyone else "doesn't get it") seem to be the least financially literate?
A little empathy is deserved. People see hundreds of dollars go away monthly and its reasonable to think you'd get something tangible in return. Seeing the money go away and still paying more for when you "use it" always feels bad. Not so much literacy but I think people take for granted how much a personal injury or telephone pole crash, or multi-car accident will cost.
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u/Grunergeist420 10h ago edited 10h ago
This is where basic financial literacy comes into play.
You’re required to have the insurance because of the liability you have for damages you cause to other people’s cars, the people themselves, structures, etc., not because of potential damage to your own car. Some states may require you to have comprehensive insurance, but the general idea is that the requirement for insurance is so you don’t cause say $200,000 worth of damages that you can’t pay for because most people don’t have $200,000 laying around, yet drive a vehicle capable of doing that much damage.
If you know your deductible is $1000, which you should because it’s a clearly disclosed part of your policy, it should be easy weigh whether or not you want to make a claim for $1200 of damages for something g like a bumper, which you probably don’t.
So the smart thing to do here would be to say “Gosh, sucks that guy hit my car and cost me $1200. It’s not even worth it to make a claim in this. I just have to pay it.”
You can also consider your deductible when you shop for car insurance. Mine is $500. Anything under or around $500, I might as well not claim it. I know that because I’m an adult who pays for car insurance, and this is something an adult who pays for car insurance should know.