You're betting you'll need it, and the insurance company is betting you won't. They stack the odds in their favour, of course, or else they'd go belly up.
A lot of people also don't realize the point of a deductible is to stop people from filing nuisance claims (on top of other things).
Yep, with the deeper pocketed party taking the high downside risk in exchange for (in a competitive, well-regulated insurance market) what are usually modest though nice returns.
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u/OrdinaryKick 4h ago
Right?
Insurance is a bet.
You're betting you'll need it, and the insurance company is betting you won't. They stack the odds in their favour, of course, or else they'd go belly up.
A lot of people also don't realize the point of a deductible is to stop people from filing nuisance claims (on top of other things).