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.
In: Other
it’s to incentivize you to pay out of pocket for less expensive stuff. if someone does $200 of damage to your car and your deductible is $500, there’s no point in getting the insurance company involved. prevents them from having to deal with as many small claims, bigger deductibles also lower your premium a bit, so they’ll cover less stuff but it costs you less money.
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