Insurance is the only product where you get rewarded for not using it.

Was renewing my car insurance and noticed the “No Claim Bonus” section again. The whole pitch is basically: “Congrats for not using the thing you paid for. Here’s a discount.”

And the second, do you actually use the insurance?

You lose the bonus. Your premium can go up. And suddenly, people start calculating whether the repair or hospital bill is “worth claiming.” Even insurers openly advise people to avoid small claims to maintain lower premiums.

Which is kind of insane if you think about it.

Imagine if your gym gave you rewards for never entering the building. Or Netflix charged you extra for watching too many shows. Insurance might be the only product where the ideal customer is someone who keeps paying but hesitates to use it.

Not even saying insurance is bad, btw. Large claims obviously matter. But the psychology behind the whole system feels weirdly designed around making you self-filter before claiming anything.