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One can see cash as universal insurance. For example, if you have more than a car worth of cash in an easily accessible account, your car is effectively insured
by GuB-42 3y ago
One can see cash as universal insurance. For example, if you have more than a car worth of cash in an easily accessible account, your car is effectively insured. If you break it, you can just buy another one. A car is a lot of money but insurance premiums are also a lot of money over time.
And unlike a car insurance that only covers your car and only in specific cases (ex: crashes are covered but not mechanical failures), cash covers for everything up to the value you have available. It doesn't mean you shouldn't get "proper" insurance, there are extreme events you would need way to much cash to cover (ex: civil liability, health,...), just that cash can be counted as insurance.
- vlod 3y agoDoesn't car insurance also cover the cost of you hitting another car. Sure I can save enough to replace my 20 year car, but not for a Bugatti (~$3M).
- GuB-42 3y agoYes, but I assumed you already have this, as it is mandatory in most places. I was talking about the more expensive insurance policies that cover "all risks", including theft, vandalism, or damage to the car due to weather or accidents where the owner is at fault.