Investing (and self-insure) vs. Insurance

[dado potato]

I agree with jp1.

At the same time I opt for the highest deductables available, I need savings in a bank or credit union "for the unexpected". My practice is to put in 100-200 dollars per month. I have never had a claim, but if I did have a claim, the deductible could wipe out my reserve for the unexpected. Additionally I would likely need to sell stocks and bonds.

I did shop around when I first became a customer for auto insurance. I shopped around again when I became a home-owner, and I concluded the most competitive quote would be on bundled insurance with home and auto coverage from the same company. Since then, years of claims-free insurance resulted in a discounted premium on the bundle. I have not shopped around in the past ten years, but I suppose I should, just in case there is an insurance company that is more competitive than the one I am with now.

I understand that I could get auto insurance with (potentially) a lower premium if I have a chip installed in the insured vehicle which would monitor my safe/unsafe driving habits, miles traveled, etc. I personally would not sign up for this. I generally don't appreciate surveillance on me. I wonder if the parking lot, in-store, in-park-pavilion, and doorbell cameras are nearing a saturation point. Besides, I brake for birds, deer, and even turtles on the lonely forest roads around here... I understand that "panic braking" would be reported to the insurance company by the chip as an unsafe driving incident, and tend to increase my car insurance premium.

[ApatheticNoMore]

With health insurance I'll actually get the lowest deductible, it's peace of mind, like I want to be worrying about medical costs, and every little loophole they will find, anymore than I need to when I'm sick.

The only other insurance I have is car insurance for which I could probably reduce the amount of comprehensive (you don't want to reduce liability, there are really expensive cars on the road) and renters insurance which since it's bundled with car insurance and reduces the cost of car insurance is actually effectively free).

[pinkytoe]

It is interesting to think about how many of our dollars go towards insurance of one type or another. It is currently our highest monthly outgo after groceries. We have had one homeowners claim in our life and that was for being sued by the people we sold a home to (non-disclosure claim). The damages, ie installing a French drain were about $2500 so it cost us very little after the deductible. No auto claims ever. Health insurance was always covered by our employers but that is the only insurance we have ever actually benefitted from.

[rosarugosa]

Dado: If you've been with the same insurer for many years, it is definitely worth comparison shopping. I learned from someone on this forum several years ago that insurance companies do the opposite of rewarding loyalty, so you can almost certainly get a better deal with another carrier. I saved something like $1800 per year by switching. The premiums have since inched upward although we did dip a little bit this year, but by next year, we should probably shop around again.

[iris lilies]

Dado: If you've been with the same insurer for many years, it is definitely worth comparison shopping. I learned from someone on this forum several years ago that insurance companies do the opposite of rewarding loyalty, so you can almost certainly get a better deal with another carrier. I saved something like $1800 per year by switching. The premiums have since inched upward although we did dip a little bit this year, but by next year, we should probably shop around again.

over on the MMM site they are yelling at me for paying too much in umbrella insurance. Currently its is about $1200/ annually for us which is HIGH! I remember back when it was cheap, just a couple hundred bucks. I suppose I’m getting ripped off….

[jp1]

over on the MMM site they are yelling at me for paying too much in umbrella insurance. Currently its is about $1200/ annually for us which is HIGH! I remember back when it was cheap, just a couple hundred bucks. I suppose I’m getting ripped off….

That is high. Ours just renewed for $241.

[bae]

That is high. Ours just renewed for $241.

Mine is only a few hundred $$$ a year as well.

[herbgeek]

My 2mm umbrella was around $300 iirc.

[iris lilies]

Ugh. Crap. I don’t know when our umbrella insurance cost went up so high. Maybe our agent misspoke when we last talked.

But now I will have to look into it. Thanks for nothing! Hahaha, really, but thanks!

[jp1]

Ours is $1m so yeah &300 for $2m sounds about right.