To report or not to report... renter's insurance

[growing_older]

Here's another vote for looking in to higher deductibles. If you are reluctant to make a claim, then you aren't really getting much benefit from insurance at these levels. If you only make claims if there is a huge loss, then you should consider carrying a correspondingly large deductible. The premium that you save may be more then enough to pay for new bicycles if they don't get lost too often.

 

[free4now]

New wrinkle: I got an email from someone who says they have my stolen bike:

http://www.early-retirement.org/for...-who-has-my-stolen-bike-51633.html#post968189

As to higher deductibles, I am against them for non-financial reasons. I have had incidents where people caused about $1000 worth of damage to my car. Law enforcement told me essentially "You're insured so just use your insurance. Don't bother us trying to file a case against the perpetrator." How frustrating!

I'm the kind of guy who would obsess for days, months, heck years over how to get the responsible party to pay my deductible, and I finally realized I should just lower my deductible so I don't waste so much mental effort worrying about recovering a big deductible. A $1000 deductible would be enough to get me into full on can't-sleep-well-for-days obsessing mode, and I just decided it's not worth that even though I might save a few bucks in the big picture.

 

[flyfishnevada]

Our washing machine overflowed last September flooding 2/3 or our house. We of course made a claim. It was over $25,000 when it was all over. Our rates didn't budge. Now, we do that again anytime in the next few years and I bet they drop us.

 

[Martha]

That was short and sweet.
Shut me up and basically made a fool out of me with one word.

You are still my buddy aren't you Martha?
Guess I'll get another one word-er?
Steve

Yes.

 

[Stevewc]

Yes.

I knew you wouldn't let me down
Steve

 

[TromboneAl]

To me $1400 is a ridiculous amount to spend on a bike.

Yeah, it is a little low.

 

[CuppaJoe]

BTW, my renter's insurance is up for renewal in a month, $211 for the year. They quoted a $21 savings if I switch from $500 deductible to $1,000.

 

[MichaelB]

BTW, my renter's insurance is up for renewal in a month, $211 for the year. They quoted a $21 savings if I switch from $500 deductible to $1,000.

Insurance is to protect you from unaffordable or catastrophic loss. People should always allow themselves the highest deductible affordable - and save the difference.

 

[CuppaJoe]

Thanks, MichaelB, I didn't even buy renter's insurance until I had a portfolio large enough to protect. It's the liability coverage that really matters to me. If the place burns down, I'll collect even though I could deal with replacement costs myself. I don't insure for earthquake.

 

[Nords]

They quoted a $21 savings if I switch from $500 deductible to $1,000.

So a higher deductible would take you a decade or two to come out ahead on the invested float. How often have you gone between claims?

Our hurricane deductible makes a big difference on our homeowner's insurance premiums, and we've gone nearly 18 years without a direct hit. I'm willing to risk the loss and we've already made our profits from the float.

 

[CuppaJoe]

LOL. Nords, I've never made a claim and learned I don't qualify for the claims-free discount and plus 55/retired discount because they are for homeowners only, not renters. I figure the time it would take me to write to the insurance company to make the chage is worth more than $21. I'm thinking it over but at $211, it's cheap insurance. Reminds me of Harry Browne's idea in "How I Found Freedom in an Unfree World" not to fret over costs less than $10 which would be a much higher no-fret amount three decades later.

 

[free4now]

It looks like getting my bike stolen may actually be profitable for me. After dealing with a bit of rigamorale from Visa and Allstate both claiming the other was the primary insurance, and both saying they wouldn't process the claim until they heard from the other, I got a call from a really on the ball Allstate rep.

After explaining my frustration he quickly set out to make it right, and after a couple of hours and a few phone calls he had processed my claim by contacting Visa and the bike shop.

It turns out that the sale price I bought my bike for is no longer in effect, and the current price is $450 more. And it turns out that I have full replacement cost insurance. So the agent said that I will be getting a check for about $1400, which is the replacement cost of $1900 minus my $500 deductible. And I still should get the $500 from Visa as well.

I will say that first and only ride was a good test ride; I determined that I didn't like the Shimano shifting system as well as the SRAM system, so I ended up replacing the bike with a different model with SRAM shifters, for $100 more than I paid, but $400 less than insurance seems to be paying.

Strange world, it is.... the bike theft seems to be getting me better bike and money in my pocket.

I suppose they looked at their database and noted that I've never filed a serious claim before and decided I'm not a scammer.

I noticed an advertisement on the train the other day for Allstate renters insurance, which happened to have a picture of two nice road bikes remarkably similar to mine which was stolen. The copy is "Can you afford to buy it twice?". And there was something about how bicycles are stolen often in San Francisco. So apparently I'm their target market.

 

[Sue J]

So whatever happened to the person who supposedly bought your bike at the flea market and just wanted to "do the right thing" and get it back to you?

 

[Bestwifeever]

Yeah, I guess this means you didn't get your bike returned by the unsuspecting innocent who bought it at the flea market?

 

[Texas Proud]

It looks like getting my bike stolen may actually be profitable for me. After dealing with a bit of rigamorale from Visa and Allstate both claiming the other was the primary insurance, and both saying they wouldn't process the claim until they heard from the other, I got a call from a really on the ball Allstate rep.

After explaining my frustration he quickly set out to make it right, and after a couple of hours and a few phone calls he had processed my claim by contacting Visa and the bike shop.

It turns out that the sale price I bought my bike for is no longer in effect, and the current price is $450 more. And it turns out that I have full replacement cost insurance. So the agent said that I will be getting a check for about $1400, which is the replacement cost of $1900 minus my $500 deductible. And I still should get the $500 from Visa as well.

I will say that first and only ride was a good test ride; I determined that I didn't like the Shimano shifting system as well as the SRAM system, so I ended up replacing the bike with a different model with SRAM shifters, for $100 more than I paid, but $400 less than insurance seems to be paying.

Strange world, it is.... the bike theft seems to be getting me better bike and money in my pocket.

I suppose they looked at their database and noted that I've never filed a serious claim before and decided I'm not a scammer.

I noticed an advertisement on the train the other day for Allstate renters insurance, which happened to have a picture of two nice road bikes remarkably similar to mine which was stolen. The copy is "Can you afford to buy it twice?". And there was something about how bicycles are stolen often in San Francisco. So apparently I'm their target market.

Insurance can be strange that way... one of my old bosses had just bought a new car... in the low $30s... one week later someone ran through a red light and totaled the car... because he got a great deal on the car... and sticker was higher... he 'made money' on the deal..

Now, I say that because there was no guarantee he could buy a replacement for the original price he paid (just like your bike... not on sale anymore)... the insurance is supposed to put you where you were... so if a new one cost $1900... that is what they are supposed to use to process the claim.

 

[free4now]

Yeah, the guy who claimed over email to have my bike never responded to my requests to meet IRL. I'd lay odds that he never had the bike and was just looking for someone gullible and desperate to wire or give him cash. Ever since the internet exploded I just take it as a given that I'll interact with a scammer every now and then; keeps me on my toes!

I just got the $1400+ check from Allstate along with the itemization. They seem to have erred in assigning a zero value to my new helmet and pedal set which were stolen along with the bicycle, so technically I am owed another $80 or so. But I think I'll just let that go given that I'm already ahead.

 

[free4now]

Oh, and the final coup de grace: I got a notice in the mail that my stolen bike is being recalled due to faulty cranks and that I should stop riding it immediately, that injuries have been reported.

Take that, bike thief!