Drivers know that they need to carry auto insurance, not only to keep their vehicle street legal but also to protect themselves from potential financial issues if they’re involved in an accident. But what about those drivers who never need to use their insurance?
One TikToker says he has a controversial opinion about what should be done with car insurance premiums if you make it through an entire year without needing to file a claim. The idea has prompted @shaudy4eva’s post to go viral, with more than 80,400 people liking his post as of the time of publication.
And many of the more than 2,300 comments on the post are from people who not only agree with the TikToker, but who have other ideas about how the unused premiums should be redistributed, with one person even mentioning that this topic is something people should be talking about during election years.
Of course, there were also a few people who disagreed with the idea, saying it went against the model that allows insurance companies to pay out large claims.
Man Wants Insurance Premiums Refunded at the End of the Year
@shaudy4eva Would be a nice check 🧾#car #insurance #unpopularopinions #curiosity ♬ original sound – Shaudy-Shaud🤌🏾
The TikToker spoke to his followers in an Oct. 9 post that included a text overlay that said, “Unpopular opinion: Car insurance needs to be paid back at the end of each year if you didn’t get into an accident.”
In the video, he joked about that excess money, rubbing his thumb and fingers together in the familiar “money” gesture, saying, “We need that.”
People Were All About the Idea
Most of the comments were from people in agreement. “You should be able to use it at auto shops, like medical insurance at a doctor,” another person wrote. “Safer vehicles create less accidents.”
Another person shared that some companies already do something similar. “I agree. In the meantime, switch to car insurance companies that send you a check after 6 months if you didn’t get into an accident,” they wrote.
Some insurers even offer incentives to people who haven’t filed a claim. For example, State Farm offers customers a discount if they go three years without an accident or moving violation. Of course, that’s not the same as cutting customers a check if they make it through the year without a claim, but it may be more than some other companies offer drivers.
There Were a Few People Who Explained Why It Wouldn’t Work
A small handful of people popped into the comments as a voice of reason, sharing why something like this would make it hard for the insurance company to function like it was supposed to.
“Let’s say 1 million people pay $1,000/year for insurance. That’s $1 billion collected. If 90 percent have no accidents and get refunded, the company returns $900 million, leaving $100 million,” they wrote in their example. “Now assume the other 10 percent file claims averaging $40,000 each. That’s $4 billion in claims against just $100 million in retained premiums.”
Not only that, but they also said that the claims alone don’t account for all of an insurance company’s costs, which include employee salaries and operating expenses.
Unfortunately, it does seem like this commenter is onto something. But that doesn’t change the fact that many people in the comments on @shaudy4eva’s post believe that they should be able to access some of those premiums if they go an entire year without filing a claim.