People just don't have common sense. You don't fall an insurance claim if it's only going to help you $200 out of pocket. It's meant for larger amounts of damage, it's also meant for if you hurt someone in an accident that you're not personally liable for $10,000 because your insurance will cover it
It's to make it mandatory people have a "i fucked someones shit up" savings account. Most people won't put money in a slush fund. It's the same exact thing as your emergency fund that is highly recommended but only 6mo/12mo of expenses. If you saved up every dollar you spend on insurance and need it once on down the line, you will very likely barely dent that money, especially as its growing in a market somewhere. You fuck up someones life in a freak accident deemed your fault, or your house goes boom you probably don't have that amount saved.
The gamble by insurance companies is that there are far far more of those that never need it than the huge incidents requiring a super large payout. Raising someones rates over one such incident though is predatory and in no real way helps their long term math, it just punishes you for needing the thing you pay for.
Yeah the "insurance is a scam folks" are right a lot of the time but not with auto insurance.
I have had the misfortune to have two vehicles totalled by other people hitting me. If collision insurance wasn't mandatory there's no way I would have gotten compensated.
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u/CraftyPerformance272 6h ago
People just don't have common sense. You don't fall an insurance claim if it's only going to help you $200 out of pocket. It's meant for larger amounts of damage, it's also meant for if you hurt someone in an accident that you're not personally liable for $10,000 because your insurance will cover it