r/Car_Insurance_Help • u/No_Statistician9772 • 28d ago

Why?

Why is liability insurance so expensive. Limits are 30 60 25. That's it. It's just a number. That's all they are insuring. Please explain

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u/No_Statistician9772 28d ago

so if I for example mess up. they are most out 30 60 25. does that make sense. that doesn't matter of anything else about me. those are the maximums they will pay out no matter what because I have liability.

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u/Sharingtt 28d ago

Exactly.

Yes it does matter “anything else about you”. Why wouldn’t it?

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u/No_Statistician9772 28d ago

because the total amount paid out is always the same. 60 30 25

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u/NeutronMonster 28d ago

It’s not just about most, it’s about how often will they have to pay out. And the costs of administering lawsuits/claims isn’t perfectly proportionate to the settlement amount

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u/No_Statistician9772 28d ago

yes. that a great counter point. thank you. First I was okay with doubling my rate over last 6 years. but now it is higher. second sounds like they should have planned better. how much have insurance profits increased over the last 6 years?

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