All true to some extent but 5K for a Tailwind is outside the norm in my experience. There are a lot of variables, one of which is the broker and the insurer. I'm well under $2K/year for an RV-4 with Global through Gallagher. Probably lower due to the number of -4's and experience, and possibly higher due to my age.
Every year I shop around for Homeowner's policies. This year I was quoted $6400, $5600, $4800, and $2300 for the same house with the same terms. The $2300 quote was from the company I have been using for 25 years. It's a crap shoot.
That's the chance you take. Most people drop full coverage on a car once it's paid for and run the same risk.
Some companies do that with both car and aircraft insurance because they really don't want to be in the high risk market.
Who are these people? I’ve never heard of anyone doing such a thing.
People that continue driving them for years or decades after the warranty runs out.
We’ve done that with every car we have owned once the value drops below $10,000. At that point we only carry liability.
Certainly "most people" do not drop full coverage when their car is paid off! I've done that on beaters, but not when the value gets up there. Some uninsured mouth breather could run into me.
Most folks aren't in the upper half of the middle class or better.
Sounds like a good way to remain struggling. If you can’t afford the insurance payment, how are you going to afford another car or to repair damages to it if you are in an accident?
Not at all. I buy cheap cars and pay cash, have no car payment, low insurance payment without collision coverage, and if I wreck it I buy another cheap car. The money I save over buying and insuring a new car helps pay for my plane.
The assertion was that these people can't make ends meet. They certainly wouldn't have money sitting around to buy a new "cheap car".
When you're in those brackets it's a chance many are willing to take. Easy credit seems to keep the cycle going along with the outfits that both self finance and sell cars.
Actually the "assertion" is that they struggle to make ends meet and saving a hundred bucks or more a month makes a big difference.
When you are poor and buy an old used vehicle, the odds of it needing expensive repairs is quite a bit higher than when you're buying cars under warranty.Thank God I haven't had a vehicle destroying accident in more than 40 years. Last time a vehicle broke down on the side of the road it took me about $10.00 in parts and 30 minutes to fix it after I limped it home. I guess I could have used some of that $27,000.00 I saved in car payments (the other 6 years) to replace that 20 year old $4500.00 vehicle but the ten bucks in parts and thirty minutes under the hood took care of it. BTW ... it's still in the driveway and performing very well.
My milage may vary ... and it does. But you you do it your way and I'll do mine.
