Here are the latest reader Qs, along with my answers:
I am currently in the process of getting a new car. Thus, I am looking for car insurance. I see car insurance as more of a liability rather than an asset. And I do not like that fact that I am being forced to get it. Do you know of any car insurance company that offers deals that will insure that I am gaining money rather than losing money? Are you familiar with peer-to-peer insurance? If so, what are your thoughts on that? Thank you.
I agree with you that car insurance is a liability; they money spent on premiums simply vanishes. You do not build equity (as is the case with some life insurance policies). Depending on the car – and the coverage – you might easily spend tens of thousands on “coverage” that is of no tangible benefit to you.
The only way I know to save money on insurance is to buy the least insurance you have to – ideally, liability-only (pays for damages you cause to another’s car and/or medical bills, but does not cover your losses).
In a few states, IIRC, you can also skip insurance by posting a bond or paying an “uninsured motorist fee.” But the sums involved are such that you are probably better off buying the insurance.
Hope this is helpful!