What is the purpose of paying a deductible for insurance companies?

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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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33 Answers

Anonymous 0 Comments

You’re basically paying for the labour required to process your claim, unless you elect to increase your monthly premium to reduce the claim excess 

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