[geeks] Insurance (was [rescue] Current collections)

[Lionel Peterson]

> From: Charles Shannon Hendrix <shannon at widomaker.com>
> Date: 2004/04/13 Tue PM 07:56:55 GMT
> To: The Geeks List <geeks at sunhelp.org>
> Subject: Re: [geeks] Insurance (was [rescue] Current collections)
> Nobody I know is happy with their insurance, and most report
> payoffs are dismal.
>
> That's the primary problem.
>
> I'm not expecting to get a new car, but certainly I expect
> that after paying several thousand dollars into a policy I
> should be able to get a decent used vehicle to replace my
> wreck, or at least enough to jump-start a new vehicle purchase.

Insurance is a tricky thing - you pay for something you hope you'll never
need, and when you do need it, you hope you didn't go wrong choosing the
lowest cost provider.

I wish "conventional" car insurance was more like "collector" car insurance -
stated value (not variable, based on condition of car at point in time just
before being wrecked). With stated value it doesn't matter what the car is
actually worth, if I pay for $10K coverage, and the car is "totaled," then I
get $10K - no discussion. Of course, I probably paid more than someone who is
willing to take a risk and gamble on the insurance companies generosity on the
value of the car when it is totaled.

Suggestion - compare the blue book value of your car vs. the increased cost of
"comprehensive coverage' (includes theft) and decide if you really need that
coverage - any payout from your insurance company will be close to the blue
book value - if you want better than that, you will need to negotiate that
with the insurer in advance.

> Otherwise, what is the point in insuring a physical object?

To reduce the impact of the loss has value, even if the loss is not reduced
100%. I wonder how many people carry "comprehensive coverage" once they pay
off their 5 year old-car? I wonder how many folks make an educated decision
about that...

> In any case, I don't like the idea of forcing an overly costly and
> broken system to be mandatory.  I want things fixed before I'm
> forced into it.

No, the requirement (at least in my state) is that you insure the lein holder
against loss of the vehicle AND that you insure other motorists that you will
cover any expenses related to your operation of the vehicle. If you have
sufficient assets, I'd be willing for folks to self-insure, but those assets
would need to be secured...


Lionel
lionel 4287 at verizon net