I normally don't bother with item-by-item insurance - electricals and so on. Only have on one occasion, which was with Richer Sounds. They do a deal where if you don't claim on the insurance after the 3 years are up, you can take it back for a full refund, and you'll be lent something equivalent whilst it's being replaced. I think it was 10% of the purchase price.
Since interest rate is about 3%, and the policy lasts three years, that means you pay around 1% of purchase price for the insurance. Seems fair enough to me to avoid the pain in the neck that SOGA/warranty claims tend to involve.
I for one only take out the insurance that is required by law ie
car insurance so when some uninsured twat crashes into me i can pay for it or
building insurance because my mortgage provider wont give me a mortgage unless
i have it.
insurance companies are just money making machines that why warren buffet bought
hrc insurance in the 60's and is a billionare and i am a sad mb and EV+ player
I have car insurance, and that is about it really. Agree about the Warranty comments, big big rip off!
Have a plan and stick to it
I remember many moons ago (early 2000's) really losing the plot in Swindon's Dixon's when buying a camcorder because this idiot wouldn't take no for an answer when I refused a five year extended warranty of about £150 on a £300 camcorder. Wankers.
Originally Posted by Andy
Ned Flanders didn't take out home insurance as he considered it a form of gambling!
I have life assurance which I took out when I first got mortgaged about 8 years ago. I think it is called a 'Fixed Term Policy' or something like that.
Although it is of course -EV atm, the older and more decrepid I get it may become +EV as my premium doesn't go up as I get older.
I avoid most insurance bar car and house, phone insurance etc is a waste of money.
Had travel insurance missed flights to canada car broke down on way to manchester
from glasgow lost £1500 insurance company weaseled out of paying also pet insurance
is the biggest rip off out there dearer too insure a dog than a human.
I can honestly say that I think I have no insurance of any kind whatsoever at the moment.
Rent a flat, contents not insured. No car currently and cycling it to work, no life insurance. Zilch.
It's a gamble but I'm quids in so far.
You say this, but if you're in private bed and something goes seriously wrong they've not got your A&E and resuscitation equipment like an NHS hospital has so you might find yourself there anyway...
Originally Posted by Clackerooney
At the end of the day insurance is just another form of gambling, albeit a bit twisted - your stake is the insurance premium and you only ever win if your house collapses or your shiny new car crashes into a wall or generally the thing that you insured fails to some extent.
As an individual the question of whether to take the insurance gamble usually comes down to what likelihood you see of an event occurring. You calculate a probability on the event occurring, what the cost will be to you if the event does happen and if the odds/costs involved are right you take the gamble / pay the insurance premium - in other words you think to yourself (very generally) 'how likely is it that my house will fall down / how much would it cost to repair the damage' and if you think the likelihood/costs involved in your house falling down are greater than the amount you'll pay in premiums over time, you take the insurance.
I did actually think about whether it was really worth getting house insurance as opposed to putting the same amount into a bank or other investment and just leaving it there to grow over time as an emergency fund. In the end though I figured there was no easy way to tell how likely it would be that xyz disaster would happen and whether I'd have saved/invested enough by that time to actually pay for any damage done... so just paid the premium heh.
Bit cynical... but also some insurance companies are loathed to see anyone 'winning', ie they don't particularly enjoy paying out insurance claims and will avoid it at all costs if it's possible to bend the rules slightly or refuse a payout on the basis that some term/condition wasn't met. Something not unheard of in relation to online gambling...
But stuff like extended warranties is a joke, most of the time you're covered by the manufacturer's warranty (or even the trade descriptions act(?)) anyway. I think the only extended warranty I've ever heard defended as being useful is for laptops - where repairs can be quite expensive and you can't really do it yourself if it's an internal problem. Other than that it's a pure con.
Not impressed with the way every year we get a renewal quote through from the insurer (for the house) and despite having yet another year of no claims they still add on another 10-20% in the hope that we won't question it and they'll get away with it. And then when you go online and find a cheaper quote at the same insurer, they just say 'sure we'll apply that quote to your policy' when you ring them up?! Bah reminds me the insurance is due to be renewed in a month's time...