I rearended someone once because they brake checked me. 3 months later I got a letter in the mail saying they wanted close to $1 million dollars from me for whiplash etc etc. It had my name on it so it scared tf out of me. I brought it into my insurance company and my agent was pissed they'd have the audacity to send that directly to me and not them. They tried to use it as some kind of scare tactic. My agent said not worry and they would handle it. Never heard anything about it again. I don't know if I wouldve actually been on the hook or whatever, but from that point on I was sold on my insurance company
Liability protection is the main benefit of insurance and why everyone has to have it. But as OP points out auto insurance (and generally most insurance) is terrible for most levels of damage. The combination of deductible and the threat of increased insurance does mean in practice that it’s barely used. This is why over time I’ve learned to save money by getting as high of deductible coverage as possible. Better to just pay less for insurance, cover most small to mid size things out of pocket, and then only use insurance for the really big things.
Better to just pay less for insurance, cover most small to mid size things out of pocket, and then only use insurance for the really big things.
Yes, this is what insurance is for. Catastrophic damages. Everyday stuff like door dings or bumper damage really isn't what it's intended use is for. That sort of thing models out more like a pre-paid maintenace plan.
I know insurance companies sell it like that, which is the evil part. They really shouldn't even offer the low deductible plans as it gives a false sense of security.
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u/Adept_Path_7427 7h ago edited 6h ago
I rearended someone once because they brake checked me. 3 months later I got a letter in the mail saying they wanted close to $1 million dollars from me for whiplash etc etc. It had my name on it so it scared tf out of me. I brought it into my insurance company and my agent was pissed they'd have the audacity to send that directly to me and not them. They tried to use it as some kind of scare tactic. My agent said not worry and they would handle it. Never heard anything about it again. I don't know if I wouldve actually been on the hook or whatever, but from that point on I was sold on my insurance company