- Joined
- Jul 18, 2017
Greetings fellow Kiwis. Do you have loved ones? Do you own property? Are you alive? Well, boy do I have an offer for you. You give me money, and in exchange I give you nothing...unless of course something happens to you, your loved ones or your property. Isn't this fun? If nothing happens, you have given me free money. If something does happen, well...
welcome to Insurance. Where you you give money for something you really, really hope you don't actually have to need. Money for nothing. Drinks for free.
Terms.
Deductible: This what you HAVE to pay to draw on any policy. If your policy has a $500 deductible, you will have to pay $500 cash money, up front, right away, to activate the terms of your policy.
Liability: This is a term referring to legal obligations. Anything in your contract that imparts a liability to you is yours. Anything to the insurer is theirs. a $XXX,000 liability to the insurer is the item of value that is on sale, for the price established in your...
Principle: Obligatory amount that must be paid to make the contract valid. Under contract law, you cannot be delinquent in the payment of principle. The insurers liability only applies if the contractual principle is current and paid up front and on time. No oopsie doodles allowed.
Now that you understand these three terms, let me present to you a story.
>Be you, innocent fren.
>Driving down the road. Hit a patch of water. Spin out. Your car jumps the road, runs over Tyrone on the sidewalk. He dies 3 days later in the hospital, before you crash into Sneeds Feed and Seed (Formerly Chucks)
>Your spine is fractured in two places. You are not drunk and it was a freak accident. But the cops decide to cite you anyway for reckless driving.
What has happened here? Well first off your car is totaled to the tune of whatever its worth. You are out that much money. Then Tyrone's family sues you for wrongful death and also the cost of the 3 days it took him to die. Mister Sneed is also suing you for the destruction of his wall, as well as the cost of the lost business while his store is being fixed. And too add insult to injury the State is also threatening to upgrade your reckless driving charge to vehicular homicide and you are a facing prison.
This is where it is important to actually LOOK at what your automobile insurance covers. Are you a chad who actually went down the list, or are you a retard who clicked "Give me the cheapest option?!" Most auto insurance policies will include "property liability", "Personal Injury Liability", and "Medical Liability" as line items as you are signing up. Among other things like rental car insurance and new car gap insurance. All of which will be automatically "declined" if you select "cheapest option", which will result in the statutory minimum coverage for your district. Which I guarantee has not kept up with the cost of legal or medical services and is based on a law written almost 100 years ago. Also, your health insurance that you also sub optimized won't cover you, because thanks to the cops citing you for reckless driving they declare it self inflicted.
When you buy insurance, you should focus not on what the minimum is, but the worst case scenario that you cannot pay out of pocket to make go away. If you have good coverage in the above fuck up, Tyrones family gets a cool quarter million in compensation for his wrong death, and Sneeds Feed and seed get another quarter million to fix their building. Your car gets replaced AND the insurance company pays for a lawyer to keep you out of Prison. And maybe also figure out a way to fuck Tyrone and Sneed out of their money because the insurer doesn't want to drop 500k on their asses and its cheaper to legally brow beat them into taking less money. Also since you took the 100k per injury option, your spinal surgery is paid by the auto insurance instead of the health insurance which has told you to go die.
But if you didn't decide to pay the extra money for that coverage, well guess what. The insurer doesn't carry that liability. YOU DO.
This advice also applies to other forms of insurance. Such as health, life, and property. It is important to read these policies over in DETAIL. Its also important to remember that in general the policies are presented with the expectation that the insurer is getting money from you for a service that will never have to be rendered. So the bells and whistles are available "at additional cost". You should definitely check those "additional costs" out though, because if things go to shit, its better to have them then not.
For example, I pay 5 dollars a month extra every month on my home owners policy for "Defamation Coverage". What is that? Well simply put, if someone sues me for defamation, I can draw on my home insurance policy to hire a lawyer. Why did I add this boutique option? Well, I am posting on the Kiwi Farms.
welcome to Insurance. Where you you give money for something you really, really hope you don't actually have to need. Money for nothing. Drinks for free.
Terms.
Deductible: This what you HAVE to pay to draw on any policy. If your policy has a $500 deductible, you will have to pay $500 cash money, up front, right away, to activate the terms of your policy.
Liability: This is a term referring to legal obligations. Anything in your contract that imparts a liability to you is yours. Anything to the insurer is theirs. a $XXX,000 liability to the insurer is the item of value that is on sale, for the price established in your...
Principle: Obligatory amount that must be paid to make the contract valid. Under contract law, you cannot be delinquent in the payment of principle. The insurers liability only applies if the contractual principle is current and paid up front and on time. No oopsie doodles allowed.
Now that you understand these three terms, let me present to you a story.
>Be you, innocent fren.
>Driving down the road. Hit a patch of water. Spin out. Your car jumps the road, runs over Tyrone on the sidewalk. He dies 3 days later in the hospital, before you crash into Sneeds Feed and Seed (Formerly Chucks)
>Your spine is fractured in two places. You are not drunk and it was a freak accident. But the cops decide to cite you anyway for reckless driving.
What has happened here? Well first off your car is totaled to the tune of whatever its worth. You are out that much money. Then Tyrone's family sues you for wrongful death and also the cost of the 3 days it took him to die. Mister Sneed is also suing you for the destruction of his wall, as well as the cost of the lost business while his store is being fixed. And too add insult to injury the State is also threatening to upgrade your reckless driving charge to vehicular homicide and you are a facing prison.
This is where it is important to actually LOOK at what your automobile insurance covers. Are you a chad who actually went down the list, or are you a retard who clicked "Give me the cheapest option?!" Most auto insurance policies will include "property liability", "Personal Injury Liability", and "Medical Liability" as line items as you are signing up. Among other things like rental car insurance and new car gap insurance. All of which will be automatically "declined" if you select "cheapest option", which will result in the statutory minimum coverage for your district. Which I guarantee has not kept up with the cost of legal or medical services and is based on a law written almost 100 years ago. Also, your health insurance that you also sub optimized won't cover you, because thanks to the cops citing you for reckless driving they declare it self inflicted.
When you buy insurance, you should focus not on what the minimum is, but the worst case scenario that you cannot pay out of pocket to make go away. If you have good coverage in the above fuck up, Tyrones family gets a cool quarter million in compensation for his wrong death, and Sneeds Feed and seed get another quarter million to fix their building. Your car gets replaced AND the insurance company pays for a lawyer to keep you out of Prison. And maybe also figure out a way to fuck Tyrone and Sneed out of their money because the insurer doesn't want to drop 500k on their asses and its cheaper to legally brow beat them into taking less money. Also since you took the 100k per injury option, your spinal surgery is paid by the auto insurance instead of the health insurance which has told you to go die.
But if you didn't decide to pay the extra money for that coverage, well guess what. The insurer doesn't carry that liability. YOU DO.
This advice also applies to other forms of insurance. Such as health, life, and property. It is important to read these policies over in DETAIL. Its also important to remember that in general the policies are presented with the expectation that the insurer is getting money from you for a service that will never have to be rendered. So the bells and whistles are available "at additional cost". You should definitely check those "additional costs" out though, because if things go to shit, its better to have them then not.
For example, I pay 5 dollars a month extra every month on my home owners policy for "Defamation Coverage". What is that? Well simply put, if someone sues me for defamation, I can draw on my home insurance policy to hire a lawyer. Why did I add this boutique option? Well, I am posting on the Kiwi Farms.
