Scenario: I pay X amount of dollars per month for car insurance. I have all 4 tires stolen from my vehicle overnight. I submit a claim with my insurance company to repair any damages. I now pay a **hefty** X amount of dollars for the event that has occurred.
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It’s to discourage you from using the service which means free money for them.
The main purpose of insurance is to provide relief in an emergency. [According to Payroll.org](https://www.forbes.com/advisor/banking/living-paycheck-to-paycheck-statistics-2024/#:~:text=or%20lost%20income.-,How%20Many%20Americans%20Are%20Living%20Paycheck%20to%20Paycheck%3F,paying%20for%20their%20monthly%20expenses), last year 78% of of Americans (may not apply to you) live paycheck to paycheck. Meaning they don’t have an emergency fund to counter emergency situations. By making people pay a large percent for their first emergency with the deductible they’re ensuring that a majority of the people who have the service never use it by (in many cases) making it impossible to use.
This is the apex of Capitalism’s design. Sell a product or service you never have to deliver on. Using this infinite money glitch they’ve lobbied congress to inject themselves as middlemen in all facets of life and society (by making insurance mandatory) in this country.
By making a product you never have to deliver on mandatory for everyone you have a captive market audience and no longer have to offer competitive pricing or service terms. Meaning, it gets *even easier* to justify never delivering.
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