A penny saved is a penny insured
September 16, 2011 3:27 PM Subscribe
Downsides to setting aside cash to self-insure a car?
I'm considering dropping comprehensive and collision auto insurance in the near future, in favor of self-insuring these risks (obviously I'd keep the liability insurances and uninsured motorist). Basically, I'd keep around an amount of cash equal to the replacement value of the car in liquid savings, and contribute semi-annual "premiums" to the fund equal to the market quotes for comprehensive / collision insurance, and pull from that to handle the repairs.
I figure this will save money, but I'm wondering what advantages and services I might give up in going to liability only, and how I might replace them. Are there group negotiated benefits or something I'm not considering?