Millions of people are suckered into paying for insurance, and don't even know that when the time comes for them to need it, they don't get their settlement because the insurance company has it's dumb reasons. Doesn't anyone agree with me when I say that it would've been better to just save up all of that money yourself? Now if you have a newer car, it's more likely that your insurance will pay you, but for the market of used cars, insurance companies have their motives and reasons setup up for execution when someone tries to make a claim. I'm not saying all of the companies are bad, but I know for a fact that they do unethical things. Why not just save the money yourself?
I can not agree with what you are saying. Sure there may be agencies that make it difficult when filing a claim because incidences of fraud always exists. As for saving money for major repairs or replacement for a used vehicle in an accident that was not your fault that is a bit much to accept. I know I am not alone when I say I am not in a position financially to do this. For this reason I choose to pay a monthly premium rather than save. Another way to look at it is it's more affordable to pay a monthly premium where the total annually would be less than the total costs of replacement or those major repairs when payment is due at the time of service.
OP, I get what you're saying but that pre-supposes that every other motorist you encounter has the same sense of responsibility, decent enough wages to build a savings, etc. so that when they are at fault, they will be able to cover the repairs to your car without any friction. I live in Los Angeles and know for a fact that this is not the case with a lot of people - and practically everyone is behind the wheel here. Auto insurance works both ways so it's not the same as say health insurance where you're really just taking care of yourself. I can see your philosophy working better with health insurance than auto insurance but that's opening up a whole other can of worms. I'm actually trying to find an affordable way to pay EXTRA insurance on some modifications I had made to my car, so I'm obviously A-OK with auto insurance.
@hades_leae....I totally agree with you! I have never ever liked the idea of paying into an insurance. People always seem to have to jump through so many hoops just to claim money they were promised, there's always some sort of dispute! Then one day I saw a TV programme where this well respected British financial advisor guy was dead set against them, instead advising people to put their money in a high interest savings account. This makes more sense to me. I guess we all see things differently, but I honestly think insurance plans have had their day, they're just so dated LOL
I agree with you in part. I have had difficulty getting the other side to pay when injuries occurred, but my company was pretty good about paying out, until the last time. Here, having auto insurance is not an option. You cannot register your vehicle if you don't have active insurance, and whenever you are pulled over by the police, they will run your tags and request your current insurance certificate. Sometimes police will run your tags as you're driving along, if they think something is off, and if they see a history of no insurance and other such violations, it's of course much more likely that you'll be pulled over and end up with even more financial obligations. If they run your tag and see that everything's up to date and looks sufficient, they might not even pull you over, in which case following the law will save you money.
If I could trust another person to have the willpower and responsibility to take the initiative to save money, I'd be all for doing away with insurance. I think the OP is right that it's much easier to build up a savings account to cover potential accidents than it is to pay a monthly premium just in case. But if it was wild, wild west out there, I'm sure you'd hear a lot of cases where someone who was at fault had no savings and no way to pay the damages to your car.
