Now that my husband is retiring in a month, early retirement, we are looking into getting some more life insurance. I figure if he is going to spend a lot more time home and only work part-time, there is a good chance I’ll kill him, so I should insure him for that eventuality. Just kidding. I think he will keep busy with a new job or two and his hobbies, and stay out of my hair.
While I was on the phone with our insurance agent about the extra life insurance we will need, I decided to ask a question that has been burning a hole in my brain for years. I may have even blogged about it before. I wanted to know why is it that when you buy a car, your insurance is a set price and remains at that price even while the car depreciates every year and it’s blue book value goes steadily down. So, I asked why doesn’t the car insurance go down along with the value of the car. The answer was so simple I had to laugh at myself. The agent explained that while the value of the car does go down, the price for parts and mechanic labor costs to fix it, do not. The insurance is based on what it would cost to “fix” the car if it’s in an accident and not totaled. A new car that needs a new bumper, for example, will cost the same to fix as a five year old car that needs the same bumper! Now that makes perfect sense. I really should have gotten to the bottom of this issue sooner. I can’t tell you the number of times I have ranted and raved about the cost of car insurance and feeling like we were getting ripped off.
Mystery solved…and to my satisfaction! Now I just have to think about the life insurance and how much do we really need. Happy days.