Is auto insurance a ripoff???

Question

I have been driving for 10 yrs (no accidents, no tickets & never been pulled over) i have paid about $125 per month, thats $15,000 that i have been cheated out of. & if i were to get in an accident I would have to pay them a deductible..is it safe to say that Americans are being cheated out of billions ???

Sheesh $15,000....

Answer 1

No, it is not a ripoff.  You are paying for a service that was delivered -- protection from claims should you have a momentary brain-f**t while operating a vehicle.  

It only takes a half second of inattention to cause a catastrophic accident and you are hedging your bets that that won't happen.  However the truth is that statistically you WILL be responsible for for a major accident sometime during your lifetime and in that case, you will be d**n glad that you had insurance coverage to protect you and your assets.

I would suggest that if you have been continuously paying the same amount for insurance for 10 years with a clean driving record, it's time to be shopping for insurance again.  Assuming that you started driving at age 16 and paid $125 a month for coverage then, you're now over age 25 where rates should drop significantly.  As long as you are not griping about your rates to your insurance company, they'll happily keep overcharging you for as long as you're willing to be silent on the issue.

Answer 2

It's one of those things that sucks to have when you don't need it, but not have it when you do. I think that someone with such a driving record should be covered free of charge. It's just ridiculous, to keep paying for something like that.

Answer 3

Basically insurance is the idea that none of us have a million dollars to cover that crazy chance that we seriously injure someone or even $10,000 if we just total someone's parked car.  So we all agree we'll put our little amounts of money into this bin and then when one of us do have that accident, we'll take from the bin and pay it.  

However maybe you are being cheated because this is my first year with insurance on my own car (I had a company car before so I didn't need insurance) I have 3 speeding tickets on my record, I have full coverage and I only pay about $93 a month.  I should be paying more than you if you are a good driver.

Answer 4

Yes, you are getting cheated, until you t-bone someone and land them in the hospital with thousands of dollars in medical bills. Yes your insurance will cover it, yest it would cost waaaay more than 15k too fix the person, the car, and absorb any legalities involved from either party.

Theoretically that may never happen to you, but when it does, you will be glad you have insurance