Portable Generator Insurance?
Anybody insure their portable generators? Talked with State Farm today and am trying to figure out what the best option is. A personal item policy (similar to insuring a watch) is one option that ha...
Forum Discussion
rexmitchell wrote:jkwilson wrote:
Insuring something you can afford to replace is a poor financial decision. If you can’t afford to replace a portable generator, you shouldn’t have one because they are difficult to insure. Insure companies sell the idea that insurance is a good idea. It’s a bad gamble in almost all cases until it begins covering more than you can afford to pay.
Seems like pretty dumb logic. I can replace my pickup but cover it with insurance because I’d prefer not to write a check when a couple hundred bucks a year covers me in the event of a total loss. Risk mitigation is smart if it is cost effective. Just like we ensure personal items that are valuable, I wanted to explore the same with a generator that costs over 2k. The price isn’t right/not available so I’m not doing it but it was worth exploring.....
On average, you will spend more in insurance premiums than you would to replace the truck. That is an absolute fact. If it weren’t true, the insurance industry would not exist. Like anything else, there are cases where insurance pays you more than you pay in, but those are a big minority of policy holders. The odds are against you, but insurance marketing has convinced people that it makes financial sense to insure everything.
When you figure in depreciation and deductibles, the payback on totaling a $70K truck is substantially less than $70K. The kicker that really gets you that most people don’t consider is how much your rates go up after making a claim. Even if a tree falls on your truck, insurance companies (they share claim data) will consider you a higher risk and you will pay more.
