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In 32 of the 50 states, you can post a surety bond instead of buying the otherwise state-mandated auto insurance. That list includes my state. I buy auto insur
by sokoloff 3y ago
In 32 of the 50 states, you can post a surety bond instead of buying the otherwise state-mandated auto insurance.
That list includes my state. I buy auto insurance because it's more convenient (and cost-effective) than going through the bond posting process, arranging my own claims-handling and legal representation in the event of a loss, etc.
I pay $1220/yr for insurance for two cars and two drivers (and for coverage well above the state minimums and excellent customer and claims service). IMO, it would be crazy for me to turn down that deal.
- pc86 3y agoEspecially when the alternative is half a million dollars cash sitting in an account you can't legally access for anything else, or use as collateral for anything else, and you won't realistically have half a million dollars cash ever. I looked into a surety bond specifically for auto insurance thinking I might be able to earn a bit of interest on $100-200k cash, get a small dividend, and "break even" in half a dozen years or so. The reality was pretty grim, basically if you're not already actively searching for things to do with 6 or 7 figure sums, it's not worth the time, and that's ignoring the logistics of having someone available for the claims processing side.