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

In exchange for agreeing to be barred from submitting petty claims for ‘one broken tail-light lens, no other damage’ and similar, you get a slightly lower premium….

The lower the value of claim you want them to cover, the more you have to pay.

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