The global chip shortage is starting to have consequences

Re:The global chip shortage is starting to have consequences by sokoloff on Sunday May 09, 2021 @12:21PM (#27097218)

Borrowing also means you have to carry collision insurance, the surplus value (over the expected payout) of which should also be considered a finance charge if you’d otherwise not carry it.

[ Parent | on HN ]

Re:The global chip shortage is starting to have consequences by vel0city on Sunday May 09, 2021 @04:16PM (#27099346)

If you were to buy a car in cash for $40k+, would you really not bother to carry comprehensive insurance on it? Are there really that many people out there where a $40k+ oops just isn't a big deal, just go buy another?

I don't carry comprehensive insurance on my car. I drive a 2000 Honda Accord though, so the KBB value (and what they quoted me for) was only about $1000. I wouldn't carry comprehensive on that. But you bet if I've got $40k+ rolling down the road and in the elements it's going to have some insurance on it.

[ Parent | on HN ]

Re:The global chip shortage is starting to have consequences by sokoloff on Sunday May 09, 2021 @04:19PM (#27099368)

I've usually dropped collision coverage on cars when they get under around $15K. (All but one of my cars was purchased for less than this, often much less.)

If I had a 0% loan on it for some reason at that point, that meant paying off the loan to let me do that. (If you assume an 8% nominal return on investments, that means when paying off the loan would cost me under $100/mo.)

I think you should insure against risks that would be a substantial impact to your life and (generally) not insure against risks that wouldn't.

[ Parent | on HN ]