Thursday, July 30, 2009

Another thing we are powerless to resist.

I don't like insurance. House, car, life - whatever - no time for it. I'm convinced that the reason auto body repairs are so expensive is because of insurance, health care is so expensive because of insurance, and burial costs are so expensive because of insurance. Without insurance, dare I say, we'd lead much more productive and richer lives.
Yesterday, the renewal notice came for my homeowner's insurance. It's not a big deal, since the condo association carries the bulk of it. All I insure is from the fire wall inward. When I got to the part about declaring a deductible I started to think - and you know how dangerous that can be.
My current deductible is $500. If I increase it to $750 I can save $7 a year in premiums. Increase it to $1,000 and I save $11. Increase it to $1,500 and save $15. You get the point. Take a second and see if you can figure out my thought pattern.
I'll wait. Here is a lovely photo of some hot-air balloons while you think ...

Here's the thought pattern. If I increased the deductible to $1,000, it's another 500 dollars out of my pocket if something inside goes bad. Wouldn't you think that the premium savings would be significantly more, like say - oh -closer to $500? After all, I'm putting out an extra 500 bucks and I'm only going to save $11 in premium costs. That's the insurance racket, and the reason I don't care for it.
Am I missing something?
I didn't think so.


howard said...

question: is there an option to decrease the deductible for just $11 more annually?

i'm guessing not. in which case, i wholeheartedly agree with your premise :)

Anthony said...

Come to think of it, no. There is not an option for "Zero deductible" although I'm sure it would make for an interesting conversation with my insurance rep.

Firestarter5 said...

The insurance industry is a racket and nothing more.