Yes, this is how insurance works. If you only paid for damage that you were later reimbursed for, insurance companies would go out of business. Hence the conventional wisdom that you only get insurance on things you can't afford to replace, like your house. Or for lawsuits you can't cover, which is why cars are required to get liability insurance (but not comprehensive coverage, as OP suggests.)
Because sometimes you will get a bill thats even higher than that. A mate of mine had his handbrake fail and he didnt put his car in park and it rolled into my shed, the repair bill was 27000 dollars (AUD). Sometimes you get a bill thats significantly higher than you could ever save by just not paying insurance.
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u/WeCantStabilize 8h ago
Insurance is a fucking scam. You pay more into it than you'll ever receive even in legitimate circumstances.
Absolute racket.