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Originally Posted by TheMalcolmConnection
Say in my case, I hit some things that flew off the back of a truck and they said that the estimate to have it fixed is $1000 and my deductible is $750. Since I got this car I've paid well over $4000 in insurance to them and I feel EVERY DAMN CENT should be paid on that damage.
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And would you feel the same way if you had an accident on Day 2 of the policy that cost the insurance company the max in your liability and property damage limits? Would it be okay for the company to come back and say "Well, Malcolm, we know our contract says we have to pay X, but since you have paid only $150 in premiums, that's all we are going to cover. You're responsible for the other 300,000 in damages."?
No, of course it wouldn't. You entered a contract that is, effectively, gambling on future contingencies. The twist is, the company is betting on you (saying that you will pay more for insurance than you will cost them in the future) and you are really just hedging your bets (by buying this insurance at X, I will protect myself from having to pay out Y). Remember, you will still be liable for what the insurance doesn't cover.
Is it possible you will pay out more than you will ever recover - yup. In fact, for most people it's likely - otherwise the insurance companies couldn't remain solvent. But, are you willing to take the risk that you will be lifelong debtor due to an accident that causes serious injuries (either to yourself or others) b/c you were unable to pay the compensation?