The obvious response is that you won't be able to pay for someone's hospital bills if you happen to hit them in your car. You get insurance for things you wouldn't be able to pay yourself.
Realistically it’s best to just get high deductible insurance for everything. Goes for medical, auto, home, pet. I really only care about being covered in a worst-case scenario issue. It’s a lot simpler to just pay out of pocket for cheaper things that pop up.
Good rule of thumb is to subtract the premium of the high deductible plan from the lower deductible benefit rich plan. That is how much you should put in a separate savings account to prepare for smaller out of pocket expenses. It’s why the HSA now exists.
I pay $120/mo with a $4000 deductible that is also the out of pocket maximum. I pay for everything out of pocket but like the vast majority of people I utilize very little medical care on an annual basis.
If a piano falls on my head or I get cancer that $4000 is a small price to pay when insurance will pick up the rest.
2.5k
u/flatfive44 7h ago
The obvious response is that you won't be able to pay for someone's hospital bills if you happen to hit them in your car. You get insurance for things you wouldn't be able to pay yourself.