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
You pay less per month because you are assuming a certain amount of liability. Say your deductible is $1000. You are paying for everything up until $1000 and then your insurance pays after that. Simply put, you are basically paying a premium to insure your car beyond $1000 in damages.
You can get insurance with no deductible, it will just cost you more per month and unless you frequently make claims the additional premium will eventually end up being more total than your premiums plus the rare out of pocket expense of your deductible.
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