4 ms·

Is there any legal/procedural aspect to self-insuring, or is it just a placeholder for saying "we'll eat the costs" ?

• dv_dt 5y ago
  I think it’s generally a phrase only used when it is a conscious decision or analysis for an area that generally already has insurance policys commonly written. Eg fire insurance for buildings and contents.
• more_corn 5y ago
  It’s possible to file for an exception to auto liability insurance by proving that you can cover any liability up to and including the state minimum for liability insurance coverage.
  • adrianmonk 5y ago
    Generally, I would think there's paperwork/procedure/approvals required whenever the insurance protects more than just you. Auto liability insurance is an example because it protects other drivers. Another example might be homeowner's insurance, which (if you have a loan) protects the lender too because the house is collateral.
    • throwawayboise 5y ago
      Insurance does not remove liability from you personally. If you cause damage with your car, you are liable for it whether you are insured or not. The insurance is a private contract between you and the insurer where you basically agree to pay them a monthly amount and they agree to cover any losses you may be liable for (up to some pre-agreed limit). But the liability is not theirs, it is yours, and if the damages exceed your coverage limit, you are responsible for the difference.