|
Actually the efficient way to buy insurance is to assume as much of the risk as you can afford and transfer catastrophic losses to the insurance carrier.
I buy $1,000 deductible comprehensive and collission insurance on all four of my cars. That is the highest deductible offered by my company. This saves me over $400 per year in premiums. I save at least one deductible every 30 months. I know that my statistical likelyhood of being involve in a insurable claim is roughly 8 to 10 percent per year (as long as the wife doesn't drive the porsche). So in the long run I am ahead.
The problem with extended warrantees is they usually have a very low deductibles or pay first dollar losses. Thie insurer is going to charge enough to pay those losses and the expenses associated with handling the claims. That is after the have paid 30 to 50% of the premium to the dealer as a sales commission.
Just $ .02 more.
|
Threaded Mode
