Just picked up a C63
06-29-2009, 02:51 AM
#27
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Think positive and take care of your car. Be smart, be safe, and stay off the curbs.
Insurance is about fear and the unknown. That's why insurance companies are some of the wealthiest corporations on the planet.
When was the last time you had an insurance claim? Or maybe you feel you're jinxed and need to pay for peace of mind insurance?
Here's an interesting anecdote: I have a wealthy friend here who owns several nice cars. None of them have auto insurance other than the legal liability insurance (and wealthy people can prove assets and waive that, too) No collision, no comprehensive. He has never made a claim and has saved over $25k in the past 10 years. He's playing the odds just like the insurance companies do (actuarial science) and he's ahead of the game.
Obviously he can personally cover a loss that might happen. But you can too, with wheels/tires. Your tires are going to wear out on the C63 before you'll ever need to use any insurance, trust me. And wheels are pretty strong. Just stay alert.
Take the $600 and set it aside. Invest it.
Anyway, it's simply a game of odds. It's up to you to play your hand the way you feel most comfortable.
Good luck and enjoy the car!
Insurance is about fear and the unknown. That's why insurance companies are some of the wealthiest corporations on the planet.
When was the last time you had an insurance claim? Or maybe you feel you're jinxed and need to pay for peace of mind insurance?
Here's an interesting anecdote: I have a wealthy friend here who owns several nice cars. None of them have auto insurance other than the legal liability insurance (and wealthy people can prove assets and waive that, too) No collision, no comprehensive. He has never made a claim and has saved over $25k in the past 10 years. He's playing the odds just like the insurance companies do (actuarial science) and he's ahead of the game.
Obviously he can personally cover a loss that might happen. But you can too, with wheels/tires. Your tires are going to wear out on the C63 before you'll ever need to use any insurance, trust me. And wheels are pretty strong. Just stay alert.
Take the $600 and set it aside. Invest it.
Anyway, it's simply a game of odds. It's up to you to play your hand the way you feel most comfortable.
Good luck and enjoy the car!
Great post and awesome thing about your friends, brb canceling my 7000 insurance, lol.
06-29-2009, 06:04 AM
#28
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'15 E63S wagon
Here's an interesting anecdote: I have a wealthy friend here who owns several nice cars. None of them have auto insurance other than the legal liability insurance (and wealthy people can prove assets and waive that, too) No collision, no comprehensive. He has never made a claim and has saved over $25k in the past 10 years. He's playing the odds just like the insurance companies do (actuarial science) and he's ahead of the game.
Going 10yrs w/no claims is pretty amazing, unless you live in Wyoming and no one would ever dent/ding/wreck into you. That's a risk I would never take. One major wreck and that $25K he saved will pale in comparison to the total bills if you really injured someone or yourself.
I agree the wheel/tire insurance is a scam (pro-rated) and the Lojack works (I had a car recovered thanks to LoJack) but I wouldn't buy it again...I'd rather the thief keep the car once it's been totally screwed.
06-29-2009, 12:40 PM
#29
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For every guy like this, I know 3-4 guys who've used the optional insurance and made 3x their investment back on the price of the insurance (bumper-to-bumper coverage I mean).
Going 10yrs w/no claims is pretty amazing, unless you live in Wyoming and no one would ever dent/ding/wreck into you. That's a risk I would never take. One major wreck and that $25K he saved will pale in comparison to the total bills if you really injured someone or yourself.
I agree the wheel/tire insurance is a scam (pro-rated) and the Lojack works (I had a car recovered thanks to LoJack) but I wouldn't buy it again...I'd rather the thief keep the car once it's been totally screwed.
Going 10yrs w/no claims is pretty amazing, unless you live in Wyoming and no one would ever dent/ding/wreck into you. That's a risk I would never take. One major wreck and that $25K he saved will pale in comparison to the total bills if you really injured someone or yourself.
I agree the wheel/tire insurance is a scam (pro-rated) and the Lojack works (I had a car recovered thanks to LoJack) but I wouldn't buy it again...I'd rather the thief keep the car once it's been totally screwed.
It's simply an odds game and that's my point. You play the odds and spend your money in the way you feel comfortable given your situation in life.
Insurance is not an investment (you cannot make your "investment back") it's coverage on calculated risk. Nothing more, nothing less.
fyi:
The Economics of Warranties
An article from the Washington Post by Terence O’Hara explains the economics of extended warranties and purchase protection plans in general.
The decision to buy an extended warranty…defies the recommendations of economists, consumer advocates and product quality experts, who all warn that the plans rarely benefit consumers and are nearly always a waste of money.
‘[Extended warranties or purchase protection plans] make no rational sense,’ Harvard economist David Cutler said. ‘The implied probability [of having an issue with the product] has to be substantially greater than the risk that you can’t afford to fix it or replace it. If you’re buying a $400 item, for the overwhelming number of consumers that level of spending is not a risk you need to insure under any circumstances.’
In short, warranties are a waste of money. Don’t insure that which you can afford to replace.
Numbers Game and Slim Chances
Like all insurance, tire insurance plans are a numbers game. However, this is a game you have a 98% chance of losing. Insider statistics show that the percentage of claims paid out by providers is as low a 2%.
06-29-2009, 03:47 PM
#30
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fwiw, he has liability insurance but nothing else. He's a studio exec and can afford not having insurance. Like me, he has more than one car and readily available money in the bank. The man has wealth and it didn't come to him from being stupid about money. And this is not Wyoming, it's LA.
It's simply an odds game and that's my point. You play the odds and spend your money in the way you feel comfortable given your situation in life.
Insurance is not an investment (you cannot make your "investment back") it's coverage on calculated risk. Nothing more, nothing less.
fyi:
The Economics of Warranties
An article from the Washington Post by Terence O’Hara explains the economics of extended warranties and purchase protection plans in general.
The decision to buy an extended warranty…defies the recommendations of economists, consumer advocates and product quality experts, who all warn that the plans rarely benefit consumers and are nearly always a waste of money.
‘[Extended warranties or purchase protection plans] make no rational sense,’ Harvard economist David Cutler said. ‘The implied probability [of having an issue with the product] has to be substantially greater than the risk that you can’t afford to fix it or replace it. If you’re buying a $400 item, for the overwhelming number of consumers that level of spending is not a risk you need to insure under any circumstances.’
In short, warranties are a waste of money. Don’t insure that which you can afford to replace.
Numbers Game and Slim Chances
Like all insurance, tire insurance plans are a numbers game. However, this is a game you have a 98% chance of losing. Insider statistics show that the percentage of claims paid out by providers is as low a 2%.
It's simply an odds game and that's my point. You play the odds and spend your money in the way you feel comfortable given your situation in life.
Insurance is not an investment (you cannot make your "investment back") it's coverage on calculated risk. Nothing more, nothing less.
fyi:
The Economics of Warranties
An article from the Washington Post by Terence O’Hara explains the economics of extended warranties and purchase protection plans in general.
The decision to buy an extended warranty…defies the recommendations of economists, consumer advocates and product quality experts, who all warn that the plans rarely benefit consumers and are nearly always a waste of money.
‘[Extended warranties or purchase protection plans] make no rational sense,’ Harvard economist David Cutler said. ‘The implied probability [of having an issue with the product] has to be substantially greater than the risk that you can’t afford to fix it or replace it. If you’re buying a $400 item, for the overwhelming number of consumers that level of spending is not a risk you need to insure under any circumstances.’
In short, warranties are a waste of money. Don’t insure that which you can afford to replace.
Numbers Game and Slim Chances
Like all insurance, tire insurance plans are a numbers game. However, this is a game you have a 98% chance of losing. Insider statistics show that the percentage of claims paid out by providers is as low a 2%.
I never got additional warranty on anything I ever bought (cars, electronics, etc) but for some reason with a hot chic selling me this and making it sound it was completely necessary (she said, all our AMG customers get these, lmao) I had to make a fast decision so I guess I got scammed. They said I could cancel it though.
06-29-2009, 03:47 PM
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06-29-2009, 03:52 PM
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Obviously he can personally cover a loss that might happen. But you can too, with wheels/tires. Your tires are going to wear out on the C63 before you'll ever need to use any insurance, trust me. And wheels are pretty strong. Just stay alert.
Take the $600 and set it aside. Invest it.
Anyway, it's simply a game of odds. It's up to you to play your hand the way you feel most comfortable.
Good luck and enjoy the car!
The thing is, I don't know if you were aware, but the tire & wheel warranty covers stock and aftermarket tire & wheels. So when I change my tires in 4k miles or so they will be insured too for 5 years. I think I will have a flat for sure in that time. You still think I should just cancel it?
06-29-2009, 05:23 PM
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The thing is, I don't know if you were aware, but the tire & wheel warranty covers stock and aftermarket tire & wheels. So when I change my tires in 4k miles or so they will be insured too for 5 years. I think I will have a flat for sure in that time. You still think I should just cancel it?
Let me add this: that 'hot' chick was a salesperson doing a good job. Nothing more, nothing less. She couldn't give a damn. It's her income she's looking after. She'll say anything for the sale. It's called back end sales, she did her job. It's very profitable as they can get you worried about all the "what ifs."
And, no, I have not made an insurance claim for at least 15 years, maybe longer. Minor stuff is sometimes better to repair yourself. Every time you make a claim the insurance company can bump your rates. And I also carry a large deductible since that keeps the premiums down.
Again, life is a game of odds. Take this job, don't take it. Marry this woman, don't marry her. Move to this location, or move to another location. Etc., etc.. You weigh it all out.
p.s., I'd shop around for a warranty (of any kind) outside of the dealer.
http://www.carbuyingtips.com/warranty.htm
I understand buying a car is a big financial decision for most people. But as you mature and get more financially secure, all the concerns about insuring everything and all the "what if" scenarios tend to fade into the background. You get more wise about your money and feel more secure that the sky isn't going to fall. And then you are dead and hey, the sky still hasn't fallen
Last edited by 220S; 06-29-2009 at 05:31 PM.
06-30-2009, 08:39 AM
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2009 C63 AMG / 2007 BMW 130i M Sport
I don't think I'm adding anything new, but:
Insurance is exactely what "insurance" means.
For me: I have insurance on the C63 and not on the 130i. I took the decision for many reasons, some from the heart, some from the head, but above all, because I care much more for the C63 and I want to be ensured that even if something really bad happens to it, I'll be able to have her back, or have another similar car in her place.
Insurance is exactely what "insurance" means.
in·sur·ance (
n-sh
r
ns)n.1. a. The act, business, or system of insuring.
b. The state of being insured.
c. A means of being insured.
2. a. Coverage by a contract binding a party to indemnify another against specified loss in return for premiums paid.
b. The sum or rate for which such a contract insures something.
c. The periodic premium paid for this coverage.
If you are paying for your peace of mind, it is worth it. But this peace of mind comes with a price. The dealer isn't offering you part of his profit (lowering his profit) to provide you with peace of mind (otherwise, it wouldn't be a win-win deal). It is an extra and costs extra money.n-shrns)n.1. a. The act, business, or system of insuring.b. The state of being insured.
c. A means of being insured.
2. a. Coverage by a contract binding a party to indemnify another against specified loss in return for premiums paid.
b. The sum or rate for which such a contract insures something.
c. The periodic premium paid for this coverage.
For me: I have insurance on the C63 and not on the 130i. I took the decision for many reasons, some from the heart, some from the head, but above all, because I care much more for the C63 and I want to be ensured that even if something really bad happens to it, I'll be able to have her back, or have another similar car in her place.
