Greek AE86 restoration/modification (pics)

[Mux213]

jamiemirror,

thats not intirely true mate. Insurance works on the principle that only 1 out of X people have an accident but you never know whom. If those X people pay together for that one accident then things stay affordable.

The more accidents will happen, the lower X is, the higher the amount will be that each individual has to pay. To make sure that people do not abuse insurences by faking accidents, which is easy to do with cars, (and thus being the ones who get the money instead of paying it) insurers have put a penalty system in place. If you claim money you pay a higher monthly fee for several years. The more accidents you are involved in, the more you end up paying.

The amount your insurence raises has to do with the average height of an insurence claim divided by X (or something similar). Atleast in holland the amount your insurence raises by is not couple to the height of the claim (which is very unfair in my eyes but ok)...

This means that if your damages are higher then a certain amount it makes sence to put in a claim, thats what insurences are for, so you dont have to pay something you cant afford just cause you were involved in an accident.
But if it is lower then that certain amount it makes sence to pay for the damages yourself or in the long run, you will end up paying more then those damages in extra insurence money. The insurence companies welcome you to do so because they will earn more money
(actually this is the whole reason personal risk clauses are put into all risk insurences these days. You tell your insurence company you never will put in a claim below, say 500 euros, and in return they will give you lower insurence rate).

For amounts <1000 euro's I would always try to see if I can settle it with the person who's car I damaged. Only above that I would use the insurence.