Insurance companies

[Apoc]

Person A and B have identical driving records.

Person A drives a 2002 Honda Accord. Appraised value $12,000.
He is paying insurance on a $12,000 value car which evaluates to $100 a month.
His car get stolen and the insurance company pays him $12,000.

Person B drives a 1989 honda shitpile. Appraised value $2,000 + $10,000 declared value.
He is paying insurance on $12,000 value car which evaluates to $100 a month.
His car gets stolen and the insurance company pays him $12,000.

You're assuming the $12k is automatic, in most cases, it isn't. Being underwritten for the amount is not proof of value. What we're saying is the insurance company will require that Person B prove the value of his car was $12,000 before they pay on that. Insurance companies don't just pay what the policy is for, they require proof that you lost that amount. When the car is worth $12k and it's missing or destroyed, they have that proof. When the car is worth $2k and there is an unsubstantiated loss of $10k, you need to prove that $10k... with receipts.

Its been pretty easy for me to get stuff done with progressive since i've been a customer for 12 years... with one accident my fault, and some tickets. Nothing has ever been stolen.

Don't assume you'd get a payout. Check the specifics of your policy.