Forgive me if I brought this up recently (I think it was on TMF).
I am considering reducing and/or dropping certain types of insurance.
Health: I pay $450/mo to BCBSFL. I applied for a reduction which was denied. As a student I am eligible for a policy (also BCBSFL) with less, but "maybe" not unreasonable coverage, at about 1/4 the price.
Homeowner's: I am State Farm client. They will be pulling out of Florida in next year or two. My current $800/year is virtually guaranteed to increase. How much I don't know. NB: I already have maxed out the deductibles (at $10K).
Auto: I pay around $800/year. With a pretty clean record. Again, liability only, high deductibles. Tried shopping for competing quotes, and I am close to paying the lowest.
OK, so what are the options? Here are some:
Health; already noted. I am in generally good health. i would probably feel comfortable taking the student coverage, although less yearly cap (around $200K). Important note: as a group policy, I could re-qualify later for the guaranteed issue (expensive) policy I've been on for five years. Did the same in 2003, could do it again.
Homeowner's; at what point does it become more worthwhile to NOT pay for insurance? I'm not going to pay $2,000 year to insure a $130K (optimistic!) place. There are some options to reduce the amount of coverage, but limited. State law dictates the coverages and you can't just pick and choose. Important; why not drop liability coverage? As a homestead, my home is untouchable by most creditors, even in a bankruptcy. Since most of my wealth is in my home, what am I paying to insure with liability coverage? Let them take my stock account and personal goods, worth maybe $15,000 on a good day (some of these are exempted too.)
Auto: a tricky one. In FL, as perhaps other states, you can skip insurance but you need a certificate of self-insurance. i have not yet been able to track down the costs or troubles, other than you need to gurantee a net worth of $40K (perhaps posted as bond?). In VA there was an annual cost of around $500, which was close to what a clean driver would pay for his insurance there. Assuming I can legally drop the insurance, again my liability is quite limited. if they want my stocks and furniture, sue away.
NB: In FL, many types of property and assets, even income, are exempt. If I had a normal retirement plan, exempt. A family trust? Not attachable as an asset.
What I'd really like is to run my ideas by an attorney. What kind? Bankruptcy? Asset protection? Any ideas helpful. Thanks.
I am considering reducing and/or dropping certain types of insurance.
Health: I pay $450/mo to BCBSFL. I applied for a reduction which was denied. As a student I am eligible for a policy (also BCBSFL) with less, but "maybe" not unreasonable coverage, at about 1/4 the price.
Homeowner's: I am State Farm client. They will be pulling out of Florida in next year or two. My current $800/year is virtually guaranteed to increase. How much I don't know. NB: I already have maxed out the deductibles (at $10K).
Auto: I pay around $800/year. With a pretty clean record. Again, liability only, high deductibles. Tried shopping for competing quotes, and I am close to paying the lowest.
OK, so what are the options? Here are some:
Health; already noted. I am in generally good health. i would probably feel comfortable taking the student coverage, although less yearly cap (around $200K). Important note: as a group policy, I could re-qualify later for the guaranteed issue (expensive) policy I've been on for five years. Did the same in 2003, could do it again.
Homeowner's; at what point does it become more worthwhile to NOT pay for insurance? I'm not going to pay $2,000 year to insure a $130K (optimistic!) place. There are some options to reduce the amount of coverage, but limited. State law dictates the coverages and you can't just pick and choose. Important; why not drop liability coverage? As a homestead, my home is untouchable by most creditors, even in a bankruptcy. Since most of my wealth is in my home, what am I paying to insure with liability coverage? Let them take my stock account and personal goods, worth maybe $15,000 on a good day (some of these are exempted too.)
Auto: a tricky one. In FL, as perhaps other states, you can skip insurance but you need a certificate of self-insurance. i have not yet been able to track down the costs or troubles, other than you need to gurantee a net worth of $40K (perhaps posted as bond?). In VA there was an annual cost of around $500, which was close to what a clean driver would pay for his insurance there. Assuming I can legally drop the insurance, again my liability is quite limited. if they want my stocks and furniture, sue away.
NB: In FL, many types of property and assets, even income, are exempt. If I had a normal retirement plan, exempt. A family trust? Not attachable as an asset.
What I'd really like is to run my ideas by an attorney. What kind? Bankruptcy? Asset protection? Any ideas helpful. Thanks.