Insurance - how can i make my own insurance policy

I have heard that it is possible to make your own insurance. is this true? I see all the anguish that the rest of the country is facing from all these "mini monopolies" I'm trying to find a way around them :wall:

forgas, welcome to the DIY Forums.
Banks and insurance companies own everything. Look around at the buildings and even railroad cars as you sit waiting for a train to pass. An insurance company can make premiums $10 a month. But they have thousands of people paying that $10. Short term loans bring big returns for them. How do you feel that you can compete and have the coverage you want or need. Many companies are self-insured for Workmans Comp. Get injured and see how fast they try to get you back to work or not file a claim.
I hate to say it, but, I don't think you can do yourself any good trying to avoid the big companies. Good luck to you.

I completely understand what you're saying, but I think majakdragon is right and you're going to find you can't avoid the big corporations. Only option I can think of is for you to be constantly out looking for the best deal and hoping that if enough people do it with you that the insurance companies will have to start competing for our business again.

Well forgas when people say you should "self insure" they don't mean start your own insurance company! The expression means that YOU bear the RISK for any loss. Here's an example; if you buy a new car (avg price about $22K) and you FINANCE it, the LENDER will require you to PAY for insurance to cover them! However, if you buy a $2K car, and pay CASH, or a $22K car and pay cash for it, and you REASONABLY THINK that YOU could stand the FIANCIAL LOSS if it were totaled, then you are SELF INSURED. IMO, this is just one more reason to NEVER BUY A NEW, or expensive car.

I'm self insured for lots of things, I carry high deductibles on our cars ($2K IIRC) high deductible on the house (3%- which would be $5400 in a total loss), and I carry NO LIFE INSURANCE. I don't recommend the latter for most people but I"m in my late 50's, my wife is 61, we have no kids, no financial obligations and if I kicked and left her an extra $200K-$500K it wouldn't make any difference in her lifestyle. It's not that we have a lot of money, just that she's low maintenance.

Anyway, that's what self-insured means. I recommend it, just not in the way that you were thinking.

frank

I agree with Frank, but let me add one other issue with "self insuring". You have a liability to others in case you injure/harm/damage them in any way. So not only are you insuring your home or car to loss/damage/theft/upset, but you are liable to pay for the other person's car and injury if you cause it. That could cost you many, many thousands of dollars.

If you self insure your home, you could also be liable for injuries on your property, injuries or damage caused by your animals or children, and damage caused by your negligence, ie; a fire from your home spreading to other properties.

Many states require a bond from you if you are self insuring your autos which would require you that you show financial capabilities to cover others.

In this litigious society - replace the word "thousands" with the word "millions" in the above post.

Frank had it, it simply means you assume the financial risk. Most people are 'self insured' to some extent or another. Own a car but don't have comp and collision? Then you are 'self insuring' against damages. The difference is that on big ticket items (such as your financed home), the only way you could self insure would be to prove that you can cover the loss (with a bond for example).

While important, those are less so than the sheer liability you expose yourself to. If there is an accident and lawyers get involved, they will ask for the policy limits. Whether than limit is 10k or 100k. If you are self insured, then they will probably ask for the bond amount (I'm *guessing* here).

While you may not be able to get blood from a turnip, you can make life miserable for the turnip.

Yep, thanks for the help guys, I guess I wasn't real clear. When I say I'm "self-insured" I meant only for the loss that I can stand, not for what others may suffer. I obviously carry $100K/$300K liability on my cars and home, plus a $5MM "umbrella". That makes sure that my insurance carrier is real motivated to not just "throw in" the policy.

frank