Insurance is an interesting concept. When we become adults, or late teens we are introduced to insurance companies. We are told that these companies are looking out for us, and have our backs. What we find in reality is something similar to a racket, and enterprises that are barely above criminal reproach.
You find out that when you place a claim that your rates are drastically increased for a period of years – to just about cover the claim. So, it is kind of like a loan. However, you begin to wonder what the large amount of money you paid up front before the accident was for. Then you find out – operating costs and profit. Furthermore, they are mandated by the government so you have to use them.
Having realized the ugly truth of insurance companies, I have sought to minimize their impact on my life. I raise deductibles as high as possible ($1000), and rarely put a claim in if the amount is under $2000. I, therefore, make sure my bank accounts can absorb a $2000 hit. I shop around for auto body repairs – Macco being my favorite. My objective is to make my interaction with insurers as rare as possible.
I have also sought to take defensive driving to the extreme. I drive at or below the speed limit. I tolerate the slow lane on the freeway. I make sure others are going to stop before going through a four way stop. When someone indicates they are going to turn, I make sure they slow down and turn before I make a turn into the road. I don’t depend on the mirror, when changing lanes I also look over my shoulder at my blind spots.
I also seek to limit exposure at home. I keep fire extinguishers handly. Smoke detectors have batteries changed regularly, and storm damage is most of the time taken care of without the insurance company.
Have you sought to minimize the role of insurance companies in your life?
TheLateFrugal
