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Nov. 21, 2004 Imagine that you are driving your car, and suddenly hear an odd sound. It is towards the end of the month, and you are broke, but it is OK, you have car insurance. Not just collision protection, but repair insurance. You drive your car into Midas, they look it over, find out that it is a minor repair, but if you had waited a week your whole transmission would have been destroyed. Two months later, you go in for your regular check up, you get an oil change, tune up, and spark plug change, all the maintenance scheduled for the number of miles on your car. You come in later and realize you forgot your checkbook, so much for getting ice cream on the way home. You get in your car and drive off. You have been paying $100 a month for car repair insurance. Which is cheaper than the average cost of repairs for your car (a 95 Buick). You save money and can get your car repaired any time you need, you do pay a surcharge if your milage exceeds 15,000 miles in a year. So how could a company (Midas for instance) afford to provide this? Simple: 1 safe, constant cash flow. 2 repairs cost less when you do constant maintenance and fix problems as soon as they appear. It will cost Midas less to do these repairs than they take in. The hypothetical company would need some statistics nerds to calculate the payment for each car, and the mileage surchage. They would get something like a carfax report to figure the needed costs for used cars. And would need to be able to cancel the insurance for individuals who abused it (folks who figure they can go off- roading with this insurance). But these problems are solvable. I wonder who will provide it first? ------------ Email Aaron Baker: aaror@writing.com Tell a friend about this site! ------------ All articles are EXCLUSIVE to Useless-Knowledge.com and are not allowed to be posted on other websites. ARTICLE THIEVES WILL BE PROSECUTED! |
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