Re:Denver’s e-bike subsidy program produced more new riders,...
by KeithBrink on Thursday March 02, 2023 @09:39PM
(#35005148)
Making money based on statistics is what the insurance company does. The whole point of insurance is paying extra money to the insurance company in case I'm personally on the wrong side of the statistic.
Re:Denver’s e-bike subsidy program produced more new riders,...
by sokoloff on Thursday March 02, 2023 @09:43PM
(#35005166)
That makes sense for ruinous losses. If $12K would be a ruinous loss, you’re doing precisely the right thing, if you assume you have to have that exact car.
Having a $5K car would probably be more financially appropriate, but that’s a side topic when considering only “buy this insurance or not”.
Your chance of a total loss on the car from a collision that’s your fault or a non-collision loss is well under 4%/year (the economic break even if your additional coverage is $500 on $12K). If you can’t write a check for $12K, you might need to keep the coverage. If you can, you make money (statistically) by dropping it.