[VHRanger]

Thats exactly the problem with insurance.

If I have any sort of risk mitigation (file backup, fire alarms, spare tire, a generator, whatever) I can test that it works periodically. So I know I'm actually safe for the event.

For insurance, you can't know what bullshit they'll come up with to deny a claim when the time comes for it.

You're left with having paid for the insurance all that time for nothing! Much better to have put that money in a piggy bank instead.

[treflop]

I’ve known plenty of people who had legitimate accidents not of their own fault where insurance made them more than whole, and they would have not been able to afford the replacement if they had simply been saving for the same amount of time.

If you actually feel like you could recoup of the cost of paying for insurance by instead keeping the money in a piggy bank, you are buying too much insurance. There’s a sweet spot for insurance and overpaying for too little insurance is a you-problem.

[FireBeyond]

> I’ve known plenty of people who had legitimate accidents not of their own fault where insurance made them more than whole

And I know plenty of people myself, who had legitimate accidents not of their own fault who were left $10-15K out of pocket after insurance and settlements.

Let's start with a car that was two years old, I owed $22K on. Car was totaled and most of the comps from the insurer was $25-28K. Oh good, says I. And then they find one 150 miles away that is $13,500. This drags the value down to about $20K. While there's obviously something wrong with this entry, "Doesn't say salvage title in the ad, so it's a valid comp".

It takes them over a month to figure this out, all the while they have me in a rental, and then try to tell me that they're only covering one week of rental coverage. Had to threaten to sue to get compensation for my injured wrist/arm (which was hyperextended when the airbag went off as I was holding the steering wheel).

I still ended up losing out on $6K 'equity' in my car, having to come up with another downpayment, and months of calls from various medical providers who were having a hard time getting my insurer to pay their bills.

For another driver who ran a stop sign, t-boned me, and whose insurance had admitted 100% liability within 48 hours.

[ametrau]

Well technically you were paying for their obligation to pay for you. Which is a real thing of value.

[bvan]

You assume it’s bullshit. Difference.