Insurance or Self Insurance?
Quotes I recieved to insure my new 1200 GS have all been above R800/month. That is is well above $100. Motorcycle insurance is just very expensive in SA.
As a comparison, my newish 4x4 double cab turbo diesel, with a value more than twice the GS is R1100/month. This is related to the high rate of theft and hijacks here in South Africa.
I have not had an accident in more than 25 years, but I had a truck stolen. The excesses on theft are high and you lose a lot anyway; like on my truck that was 2 years old I got paid out R160 000 and a replacement was R280 000.
Now I figure if I just put R800 away into an account each month, to insure myself, is that not a far more profitable option? In one year, I have put away R10 000. Of course there is the risk of my bike being stolen tomorrow and I lose everything, But I dont leave the bike unattended in public places where vehicles get stolen, as its not my primary means of transport. Its either in my garage, or somewhere in sight. Its never out of sight for long, and never at a predictable time.
The truck I insure as it is more of atheft risk, and I would need to replace it immediately, as it's my main transport for work and for business. I could not absorb the loss, would have to replace it immediately, hence I need insurance.
I paid the bike cash so have no debt on it. reckon I could survive without it until i build up cash for another.
The other isssue is that I am accumulating debt at the moment as I am starting a High Court application to have my children removed from the mother and restrict her access to them. Advocates, lawyers, court and shrink costs.... Her shrinks are on my side and first suggested it. To minimise this debt by not paying insurance is a risk, but saves a lot on interest. Our intertest rate is like 15%.
The idea of forking out extra each month for insurance, which is not absolutely necessary, seems at this stage something I can avoid and accept the risk.
Any thoughts on the matter?
Last edited by HVanDerMerwe; Jan 17th, 2010 at 2:26 am.