Blog

Short blog posts, journal entries, and random thoughts. Topics include a mix of personal and the world at large.

There's no fairness here

I am still slightly peeved that my car insurance has gone up 20% in this recent renewal period. This, for a car I only drive for weekend leisure, and have zero accidents and claims on record. Inflation sure is a bitch, isn’t it?

What is keeping me peeved is responsible drivers like me are practically subsidizing those who are not so responsible. It’s not me that insurance is worry about - it’s the other drivers on the road. California insurance minimums are too low to afford anything. Cars are so laden with technology that a simple bumper repair on a 2021 Toyota Corolla is over $10,000 (personal knowledge). Any basic fender-bender caused by me - god forbid - my insurance is out at least five-figures just to fix the other party’s car!

No wonder my premium has increased. And I thought it was suppose to decrease consistently as I get older! Lies!

The worst of the worst driving out in our roads are those uninsured and unlicensed. If one of those drivers were to hit me - I am absolutely on my own. There’s no opposing insurance to get money from. And because those who are uninsured aren’t likely to have any assets, there’s nothing for me to sue after, either. The proverbial rock cannot be made to bleed.

Again: the responsible drivers with proper insurance are paying for the subset of drivers who are not insured, or under-insured. It’s not fair, but that’s life. We got to protect our assets and cover potential risks.

It’s sad to see on the r/insurance subreddit folks complaining after accidents. It would typically involve an offending driver with no insurance, but the victim also doesn’t have collision coverage on their policy! So they had a perfectly working car, then boom, now they don’t. Their own insurance won’t pay to fix the car, and the other driver doesn’t have anything. Bad luck, absolutely. Bad planning? Heck yeah. The victims should have had collision on their policies.

Got to cover any downside risks that you cannot afford!

Ask any car enthusiast

A very sad thread on the r/cars subreddit today. A guy’s dream car - a 2024 Nissan Skyline GT-R - got stolen right out of his garage while he was away on business. The original poster says the R35-generation GT-R has been a dream of his since high school, and he’s worked his butt off to finally make the purchase. Then boom, gone in a flash like that. As a fellow car enthusiast, I empathize greatly. Having your pride and joy stolen is just about the worst nightmare.

Even if yo get it back, it’ll never be and feel the same.

Some of the responders mocked OP for being overly dramatic. A dream car is still a car - this isn’t like the lost of a family member. Besides, being so new, insurance will surely cover the full replacement cost no issues. It’s a loss, yes, but OP will soon be made whole.

For sure from a monetary standpoint the GT-R owner will be made whole. But from a mental perspective, the entire game has changed. To have something so valuable stolen right off your property is an act of violation that’s difficult to erase. A house has turned to not a home. Even if OP were to buy another GT-R, he would always have PTSD-like second thoughts when parking in that garage. Every strange noise emanating from there will jolt him to stressful alert.

It’s not simply about dollars and cents, my friends. Peace of mind is worth infinite.

Insurance on cars such as the GT-R (and other often-stolen vehicles such as the Dodge Charger/Challenger) must be ruinously expensive. It probably costs a whole car payment’s worth per month to cover the risks. Also: it’s seemingly that easy for thieves to clone an electronic car key and drive your car away? I guess anything electronic - like the push-button ignition start that most new cars are equipped with these days - can be hacked, if the incentives are high enough.

If it’s not save even in your own garage… what else can you do, honestly? Press F to pay respects.

So so sad

It is supremely tragic what happened at West Portal this past Saturday. A Mercedes-Benz SUV plowed into a family of four waiting at a bus shelter. The mom, dad, and one-year old son is dead. The youngest three-month-old baby is still in critical condition as of this writing. The driver of the Benz - a 78-year old woman - remains in custody.

A sad situation all round. An infant - god bless that he survives - is without his family. The 78-year old woman will have to live with the steep consequences for the rest of her life. She will be utterly shunned by the community if it turns out she was speeding/road-raging deliberately. Destroying lives over ego; that warrants a one-way trip to the gulags, in my opinion.

This episode is a reminder for my friends who are with new babies: get your life insurance and will in order. I know it is icky and unsettling to discuss death, especially when biologically it is still so far away (god willing). But for the sake of the children, how they get taken care of in the event of an unfortunate accident is to be prepared for now. All it takes is a rogue driver in a speeding SUV (allegedly) to upend your entire reality.

Because your death may not garner any sympathy points from the public to have a GoFundMe for your orphaned baby.

If you’re in the old lady driving a Mercedes-Benz demographic, your insurance rates are going up! That 78-year old woman did so much damage to limb and property that I don’t think even a five million umbrella policy will cover it all. I sure hope the two adult victims have a life insurance policy for the orphaned infant. Because I bet there’s not nearly enough juice to be squeezed out of the Benz driver’s insurance.

Cover your butt

Speaking of high auto insurance costs: part of the reason why it costs so much per month to insure my BMW M2 (aside from the fact it’s a fast BMW) is that I have way higher liability coverage limits than what is mandated by California. This great State of ours calls for only $15,000 for injury/death to one person, $30,000 for injury/death to more than one person, and $5,000 for damage to property (15/30/5 in insurance parlance). Those minimums are laughably low when considering the average selling price of new cars in America is about $48,000.

That means if you collide with a brand-new Toyota RAV-4, and you only have the California minimum coverage, high chance you will be personally on the hook for damages over those minimums. A total-loss for the RAV-4 is already above $30,000, so let’s not even add on any potential bodily injury of the opposing driver.

And yet the minimums aren’t any higher, because that means everybody’s base premiums would be higher as well. It seems California is incentivized to keep the minimums low, because more people would be able to afford auto insurance on the low end. (But driving is a privilege, not a right?) No need for low-income folks to carry high liability when there is nothing in their bank accounts for the opposing party to sue for.

Obviously, if you’re at least a medium earner with a some assets in reserves, you’d be risking a lot to not have higher coverage. I personally have 100/300/100 on the M2’s policy. On the other hand, I also carry uninsured/underinsured motorist coverage. Because a driver carrying State minimums can’t possibly cover a total loss of the M2. It’s kind of perverse, actually: if you have assets, you have to pay more to cover yourself and cover for other drivers’ insufficient coverage. Fair, it is not.

But I gladly pay my high insurance premiums. My risk tolerance is super low when it comes to preserving the integrity of my bank accounts. The car can always be replaced with a check from my insurance; never ever dependent on the other party’s insurance to make me whole.

Endless inflation

And the inflation hits keep on coming. Yesterday I was surprised with a double-whammy: renewal notices on this very domain (hosted by GoDaddy), and my auto insurance (underwritten by Progressive). Both are going up, much to my immense chagrin. Honestly, what remains in our daily lives that has not increased in pricing?

I would classify GoDaddy’s price bump as greed. How much work is there to maintain domain registration? My website is not even hosted with GoDaddy! I am failing to understand where the extra money is going towards. Maybe this site has increased in traffic enough to warrant a price increase? (A lot more pings!) That’s just my ego talking, obviously.

What isn’t greed is my auto insurance premiums going up. I have first-hand experience with how expensive it is to fix cars these days. My father’s Toyota Corolla got into a low-speed fender bender, and the whole ordeal was over $10,000. That’s about half the cost of the car new. It’s all the tech stuff in modern cars that’s driving up the costs. The Corolla has a front radar sensor, which in addition to replacing, the body shop had to drive the car to the local Toyota dealership to get it re-calibrated. Money.

So I don’t blame Progressive for raising my rates. The only slight ickiness about it is that it will probably never go back down. Cars certainly are not getting less complicated! Paying $200 a month (almost maximum coverage with high deductibles) for a car I seldom drive is the price to pay for being a car enthusiasts. My brother has a Lotus Evora - a six-figure sports car - on order. He’s going to be absolutely raked over when it comes to insuring that thing properly.

As saying goes: got to pay to play.

Inflation everywhere

I’m pretty certain my auto insurance rates are going up in the next six months renewal. Isn’t everything? Inflation is an absolute bitch, even for someone like me who have only myself to feed/take care of. Just last week I noticed the prices at Panda Express (the best go-to Chinese food in a pinch) have gone up another 30 cent. It must be the great egg shortage going on right now. Maybe don’t use eggs in the fried rice for the time being…

Rent have gone up this year as well, not because my friend/landlord hates me, but because of energy prices. Anyone in California using their central heating a lot during this winter have had a bit of a sticker shock recently. The prices of natural gas is stupendously high, so much so one friend of mine have stopped heating up her entire apartment. Price of electricity have gone up as well. Since my rent is inclusive of utilities, no surprise that it has rightfully increased this year.

At least my BMW M2 can be insured. This article on Jalopnik says in certain areas (of high crime), insurance companies are refusing to cover Hyundai and Kia vehicles. Because those cars are incredibly easy to steal. Understandable, really: insurance is simply risk management. If certain drivers with bad records can be denied insurance, so can cars that are heavy theft magnets. It’s not worth the risk for the underwriting companies.

Of course, it completely sucks for the owners of a Hyundai or Kia vehicle made before 2021. You either cannot get insured, or have to pay an abnormally high premium. Even if you want to trade the car for another brand, it’s not so easy. The great supply chain shortage is still effecting the car market. Customers are still paying over sticker for new cars, and used cars prices are still heavily inflated compared to pre-pandemic. Talk about rock and a hard place.

I’m low-key glad my parents’ 2018 Hyundai Tucson was a lease.

Another six months

Last night I got an email from Progressive notifying me of my upcoming insurance renewal. Good news: premiums on my BMW M2 Competition did not go up. Bad news: the premiums did not go down either. As my friend commented: it’s truly a glass half full situation. I look at it slightly differently: it’s always better to gain nothing than to lose something. So I’m okay with premiums staying put for another six months.

I guess Bay Area BMW owners haven’t got into more mayhem than usual these days. Unfortunately, our cars must still be massively expensive to repair. If my father’s Toyota Corolla costs nearly $20K to fix for a simple front-end fender bender, a BMW with all its fancy aluminum bits has got to be worse. That’s why I am paying just above $1,000 dollars every six months on a plan with a $2,500 collision deductible.

And Progressive is already cheapest amongst its peers. Premiums would be double with State Farm or Geico. It’s madness.

All for a car that I seldom drive. It’s an expensive hobby, this car enthusiast thing. Being a single male in his mid 30s doesn’t help things either. And I’m suppose to be getting a second car in a few year’s time? (Hello there, Honda Civic Type R.) Though apparently it doesn’t cost that much more to insure additional vehicles. Insurance companies know you the lone person can only ever drive one car at a time. So you would only be be insuring the opportunity risk of driving the second vehicle, which at the same time decreases the risk of the primary vehicle.

Got to spend money to save money, I guess?