The Insuring of Things

In this country, insurance is as much a part of life as taxation. Almost every major aspect of life is insurable, including life itself, whether required by law or voluntary. So we comply if we want to drive (auto insurance) or want to live in this apartment (renters insurance). And every year, we review our insurance plans to make sure we are adequately covered at the best possible price.

For a family our size (2 people living in an apartment and owning 2 vehicles), these standard features and coverages are considered "good" coverage. You can get by with less or more, obviously, but the crux is getting what would be realistically "adequate" should catastrophe come.

AUTO INSURANCE
Bodily injury liability	$100,000 ind./$300,000 acc.
Property damage liability	$100,000
Uninsured/underinsured motorist	$100,000 ind./$300,000 acc.
Medical coverage	$10,000
Comprehensive deduction	$500
Collision deductible	$500
Glass coverage	Yes
Roadside emergency/towing	Yes
Loss of vehicle	Market value less deductible

RENTERS INSURANCE
Property damage liability	$45,000
Personal liability	$300,000
Guest medical cover	$10,000
Deductible	$500
Content replacement	Cost value with evidence
Loss of use	Up to 2 years, or until recovered
Other	Sewage backup. Flooding.

Conventional practice says bundling policies under the same insurer should deliver some savings. But this year, that did not pan out true. GEICO offered the best overall rate for auto insurance ($540 every 6 months for both vehicles and 2 drivers), while State Farm offered the best package for renters insurance ($125/year) at said coverages. It would have been $30 to $60 more expensive if bundled under either insurer. I checked out the top 10 big insurers, who offer web-based estimators and various discounts. I'm sure some insiders can beat these rates, but think they are competitive rates.

With that, we bid farewell to Farmers Insurance, which would have renewed with lesser coverages (half the limits, double the deductibles) at $870 every 6 months (auto) and $167/year (renters)! I'd asked why the rates were comparatively high and was told the 2 big fires that beseiged our city had forced risk and prices up. But I found it curious that no other major insurer was increasing their rates as much as Farmers was. I'm for shopping around and options, and will gladly do it every year.

Next up: life insurance and business insurance. We already have life assurance!