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 a way to reduce premiums, which reduces upfront costs for customers and instead makes it s hidden cost to screw you over when you actually need insurance. It’s the same thing as airlines showing you cheap tickets upfront and then adding every fee and tax under the sun before checkout.
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