Another Exciting Car Insurance Question! How do rich folk show financial responsibility beside out insurance?
do they have a "financial responsibility trust account" or something?
Answers:
Post a bond. But most rich folk wouln't do that as the interest lost on the bond would usually be more than the cost of an insurance policy.
If you're REALLY rich and enjoy a D&B rating, the state MAY allow you to "self insure". Effectively you'd become your own insurance company.
In California everyone ( except Paris Hilton ) must show proof of insurance before they can register the car.
I don't think you enjoy to prove it,you just assume the risk
You can go without ins, but you must show evidence of man "self insured."
This means satisfying the state ins dept you can afford to do so,and have to post a bond.
This is how large fleets go give or take a few it.
They carry a very giant deductable, ( like $ 100,000.00) and are self-insured for anything under this numeral.
--
Not for the average person.
In states that allow it, they post a $100,000 bond (or the amount required) to the state. Usually it's an irrevocable letter of credit from a edge or other lending institute, or an insurance company bond (backed by the same irrevocable note of credit).
But i have to tell you, I've never met a booming person who WANTED to do it, let alone have done it - because insurance is CHEAPER than tying up the $100,000 per vehicle.
Insurance is a financial tool. Source(s): agent, 21+ years
They have to put X amount of $ contained by an account and have this verified in the past they are allowed to sign a waiver. I am pretty sure the amount changes from state to state.
Related Questions:
Answers:
Post a bond. But most rich folk wouln't do that as the interest lost on the bond would usually be more than the cost of an insurance policy.
If you're REALLY rich and enjoy a D&B rating, the state MAY allow you to "self insure". Effectively you'd become your own insurance company.
In California everyone ( except Paris Hilton ) must show proof of insurance before they can register the car.
I don't think you enjoy to prove it,you just assume the risk
You can go without ins, but you must show evidence of man "self insured."
This means satisfying the state ins dept you can afford to do so,and have to post a bond.
This is how large fleets go give or take a few it.
They carry a very giant deductable, ( like $ 100,000.00) and are self-insured for anything under this numeral.
--
Not for the average person.
In states that allow it, they post a $100,000 bond (or the amount required) to the state. Usually it's an irrevocable letter of credit from a edge or other lending institute, or an insurance company bond (backed by the same irrevocable note of credit).
But i have to tell you, I've never met a booming person who WANTED to do it, let alone have done it - because insurance is CHEAPER than tying up the $100,000 per vehicle.
Insurance is a financial tool. Source(s): agent, 21+ years
They have to put X amount of $ contained by an account and have this verified in the past they are allowed to sign a waiver. I am pretty sure the amount changes from state to state.
Related Questions:
- What is the purpose of saloon quirk insurance contained by Japan.What are the benefits of have a saloon insurance.?
- I get into a sports car fluke that wasn't my culpability my insurance compnay is making me repay a deductable?
- Is within a type of insurance that covers you driving other people's cars?
- Can an insurance company inform if vehicle have be contained by an catastrophe when in that be no claim and solely a police report?
- I want Temp Car Insurance as I am going to Jamaica?