Thu, 26 May 2005

Car Insurance

Jonathan, over at MyMoneyBlog, has a couple posts up about car insurance. His most recent is about collision and comprehensive. I dropped these on my 1999 Honda Civic a couple weeks ago. I'm saving $750 a year without it, and it wouldn't cause too much of financial burden if the car were involved in an accident. 21st Century fixed their web site so I was able to change my coverage without talking to Patrick. We dropped it on Denisa's car, which is only worth maybe $3k, a long time ago.

Jonathan's earlier post on liability coverage is interesting to me too. Since I started driving, I've always had the minimum liability coverage required by law. Since I didn't have many assets for someone to come after, this was fine. As I start to build up my net worth, I should definitely increase the amount of my bodily injury and property damage coverage.

I think Jonathan is a sucker to buy uninsured motorist coverage though. His collision insurance will cover his car in an accident, regardless of whether the other party has insurance, and his medical insurance should cover his medical bills. I don't think uninsured motorist coverage covers hit-and-runs either, so it's really a waste of money.

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The state is that great fiction by which everyone tries to live at the expense of everyone else. - Frederic Bastiat