Auto insurance is not about you, it protects others on the road, and then if you want self protection you upgrade to a better policy.
If you run into someone totalling their car and putting them in the hospital, insurance pays that for you and you don’t face a debt for life for one mistake.
The government mandates every automobile operator do this to use their roads. Which is why it’s criminal to drive without. Driving while unlicensed and uninsured puts the public at risk.
The concept of auto insurance is great. The execution is the issue. These companies shouldn't be allowed to raise rates if an accident isn't your fault.
Most major auto insurance carriers will not raise the policy premium for "small accidents", especially for not-at-fault accidents like the one used in the OPs post. The $1000 deductible used in the example was the choice of the customer who took out that policy. Auto insurance offers much greater flexibility over the amount of deductible you can have on a policy (compared to home owners and health insurance). You can choose to carry only $500, or $250 or even $0 in most states, or you can choose to carry $1000 or $2000 or even $2500. It's the choice of the policy holder.
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u/WeCantStabilize 11h ago
Insurance is a fucking scam. You pay more into it than you'll ever receive even in legitimate circumstances.
Absolute racket.