No, that what you gave is awful advice, to anyone who cares about their money!
Go talk to an _honest_ insurance broker (not some State Farm or other company you see on TV commercials) or better yet a financial adviser. You should reserve an insurance claim for catastrophic issues only. You should also have max deductibles. Forking over 500 for a lost iPhone is a MUCH cheaper deal than paying insurance premiums for that coverage and then the INEVITABLE rate hike because this claim appears on your CLUE report.
I made the same naive mistake as your assumptions when I was young. Lost a 1k watch, made a claim, went about my jolly day with my nice check for $750 (250 deductible). 1 year later when I go to buy a house I am surprised by how much my insurance rates are. FOUR years later after that claim fell off my CLUE report my premiums went way down. I paid the insurance company more than the $750 I got from them.
I was lucky in that my neighbor was an insurance broker and told me low deductibles are taking advantage of suckers and the lesser fortunate who are scared into these policies. What he advises most of his clients to do is take the highest deductible they can, then put aside that amount of deductible in some low earning liquid account. Now when you have an accident you "pay your self" and keep your insurance rates low.
I don't think there's any debate about the benefits of a high deductible, or that you should avoid claiming on insurance if you judge that the extra expenditure is worth saving your claim-free status.
I'm in the UK, so I can't help but assume there are differences in the insurance market. I have a comprehensive insurance policy that covers buildings, contents and accidental damage, and that covers things like smartphones too. Despite a couple of previous claims for stolen and damaged electronics, the rates are pretty good. The marginal cost for accidental damage is minimal.
Go talk to an _honest_ insurance broker (not some State Farm or other company you see on TV commercials) or better yet a financial adviser. You should reserve an insurance claim for catastrophic issues only. You should also have max deductibles. Forking over 500 for a lost iPhone is a MUCH cheaper deal than paying insurance premiums for that coverage and then the INEVITABLE rate hike because this claim appears on your CLUE report.
I made the same naive mistake as your assumptions when I was young. Lost a 1k watch, made a claim, went about my jolly day with my nice check for $750 (250 deductible). 1 year later when I go to buy a house I am surprised by how much my insurance rates are. FOUR years later after that claim fell off my CLUE report my premiums went way down. I paid the insurance company more than the $750 I got from them.
I was lucky in that my neighbor was an insurance broker and told me low deductibles are taking advantage of suckers and the lesser fortunate who are scared into these policies. What he advises most of his clients to do is take the highest deductible they can, then put aside that amount of deductible in some low earning liquid account. Now when you have an accident you "pay your self" and keep your insurance rates low.
Don't be a sucker.