Down the Drain


Clean these drains out or your house will get flooded.

I’m not kidding.

If you don’t keep the drains cleaned near your house, your street will flood. If your street floods, your house will flood. And, so will your car.

You won’t be happy. Neither will your insurance agent. And, your insurance company will probably drop you for making a claim, leaving you to ask “what’s insurance for if I can’t use it?”

That’s a story that never ends.

Here’s my last insurance company story.

About nine years ago my car was parked in a shopping center lot.  I was still inside. The ignition was turned off. I was unstrapping my seat harness when some guy backed into my car. We did all the right stuff. We exchanged licenses and insurance information. His car was fine. Mine was dented. I filed a claim with my insurance company who collected from his insurance company. Everybody agreed that it was the other guy’s fault. Including him. He tried to get out of it, but his wife gave him “the look.”

What do you think happened?

If you guess that my insurance company raised my rates because of a no fault accident, you would be right. WTH?

I want a business like insurance companies have. If you drive a car, most or all states, require you carry insurance. You are smart if you carry far more than the minimum. You pay monthly, or as frequently as you can over a years time to keep the rate down. You pay for years. In my case, I hadn’t been involved in anything for at least a decade. Until that little fender bender.

Okay.

Let’s keep the numbers simple. Let’s say I pay $100 per month. Over a years time that is $1,200. Over ten years time that is $12,000. I have a minor fender bender that cost the insurance company maybe $1,500. I’d say that their ROI was pretty good.

The insurance company will either raise my rate or drop me.

The insurance company’s gross return is at least $10,500 over ten years time. I’m sure their are some administrative costs incurred by them. Those are offset by investment packages that my money finances. At worst, it’s a push. At best, they are making money on administrative costs.

I want that kind of return on my investments. On my business.

No. I didn’t get in an accident. I was looking at the last quarter of the year. Grumble, grumble, grumble.

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