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
Two main purposes:
* “Insurance” is meant to cover you for big expenses. Your car insurance doesn’t pay for your oil change, or for a car detailing if you spill your coffee driving. Having a deductible limits your insurance to covering big stuff, which is cheaper and means your insurance premium is much lower.
* It’s one extra reason to drive cautiously. You don’t want to have to pay your deductible, which means you’ll behave more responsibly, which means you’ll be less likely to have an insurance claim. I’m sorry your tires were stolen, that sucks. If you had new tires bought free of charge, you might be almost happy your tires were stolen. But instead, you likely are paying a $500 deductible, and you might consider parking somewhere safer next time, which makes your insurance company happy.
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