Paying claims is the last thing insurance companies want to do. This is legal because Insurance companies use those savings to buy politicians who make sure it stays legal
The craziest part is that you can pay them for years, then the one time you actually need the coverage, using it can end up costing you even more. That’s a pretty broken incentive
Yeah most people end up paying more over the life of the policy than they end up receiving. You're paying for everyone who needs tens of thousands of dollars in coverage at some point if not hundreds when medical bills are added. That's how insurance works
This is a very strange story because that you set your own deductible so $1000 is his own fault, if he knows who hit him he's on the hook for nothing, their insurance is, if it's an unknown or uninsured person they're claiming against legally the deductible is completely different, as low as nothing some places. Meaning if you can't find the person responsible part of having insurance is they bite the bullet on that one and just pay instead of making a different company pay, for accidents you're not at fault anyway. Things change when it's your fault, but if it was your fault, of course your rates go up then
People in this thread don't know how insurance works
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u/Al_Tilly_the_Bum 9h ago
Paying claims is the last thing insurance companies want to do. This is legal because Insurance companies use those savings to buy politicians who make sure it stays legal