I've always been confused by things like this:
- Joe has his car stolen or drives it into a wall by accident, or some other kind of accident happens which "goes on the insurance".
- Joe gets money from his insurance company.
- Joe says: "Nah! No big deal! It was all covered on my insurance!"
But isn't it a big deal after all? I cannot imagine that the insurance company just happily pays out money like that, with no downside to Joe. Their whole business is based on collecting monthly fees and not on paying out expensive new cars to clumsy/careless people.
Surely the company must punish Joe in some way, such as increasing the monthly fee that he has to pay? If not, a customer can cost them a fortune by continuously crashing cars by accident and getting new cars on the insurance.
So when Joe claims that it's "no big deal", how short-sighted can you get? Does he not even think of the next monthly insurance bill, which will now have an extra $50 added to it or something?
I'm asking this as a person who has never once in my life had any kind of insurance on anything. The whole concept of "insurance" always seemed strange to me. It seems like it would always be better to simply save money yourself, so that you can buy a new car in case there is an accident. That way, you don't perpetually pay a company even if there is never an accident, and you could use it for something else, etc. Since they are a business, they are obviously going to make more from the customer than they ever will pay out, so it seems almost like a polished scam to me.
I must be missing something.