What if I stopped giving my money to insurance companies?
Asked by
willbrawn (
6614
)
December 24th, 2009
I just read about how the two insurance excutives are getting millions in bonus money even thought the government bailed them out. I think that is super wrong. It actually makes me sick that those kind of people are around, just trying to make a buck and not care who they hurt financially.
My question is. If I owned my vechicle and got liability insurance only (because its required by law) and took the other money that I would have spent on full coverage and stuck it in an account. And then used that money if I got in an accident. Would that really benefit me, or do I really need to keep paying these companies for there services?
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9 Answers
You can do that in some(if not all) states. In fact in CA if you have $50,000 in a special account you don’t have to carry insurance.
yes, just don’t have a wreck and it be your fault!
@AustinusMaximus- Regardless of how much money you have in any account, California law requires you to carry liabilty insurance on any vehicle you drive.
Most reputable agents will advise you to drop your comp and collision insurance after your car is a certain age. If it makes you feel happier to do so earlier, go in good health. Just make sure you have good liability in case you are at fault in an accident.
You are taking a risk that if something happens, you could be beggared.
Yes, you could do that but the thing I would worry about is if you dont have the $$ to replace the car if it gets destroyed.
So say if you saved the next year premium (Guessing $1000).
The car’s is financed for 15000
The car gets destroyed and you are at fault you now dont have a car and need to make up the 14,000.
Now is you own the car outright and can mitigate the impact of the car getting trashed and you are at-fault then it might make ense to dropp down to the minimum coverage required by the state depending on how much the car is worth and how much the extra coverage costs. (If you are paying $1000 a year for additional premiums and the car is worth $1000, that would not make sense you are better off saving the additional premiums)
The other factor to concider is, if the car is financed some lease/loan agreements will have some sort of insurance coverage stipulation.
Dont get me wrong I hate insurance, sometimes we need it. :(
There is an advantage to a 25-year-old $300 Toyota :D
Then again, I did add the medical coverage (only another $6/month) so that my hospital bills get paid if I’m in a wreck. Normally I wouldnt’ve bothered by my healthcare plan sucks so it’s a small price to pay compared to the cost of actually needing to use it.
Well then they would no longer cover your property.
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