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Old 12-06-2023, 09:06 PM   #1
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Create own insurance company?

Is creating your own insurance company an option? Make it an LLC with every way out so you never have to pay out in case of an accident? Just thinking out loud hear? What are the state regulations on an insurance company?

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Old 12-06-2023, 09:40 PM   #2
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Never have to pay out? I hope I’m never in an accident with you.

Some states allow self-insured. Don’t know all the details but my guess is you’ll need a couple hundred thousand in an escrow account
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Old 12-07-2023, 01:17 AM   #3
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Originally Posted by NWOleman View Post
Is creating your own insurance company an option?...in case of an accident?...hinking out loud hear?...?
.
Could I create my insurance company for me?
Yes.
.
For you, probably not so much.
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Old 12-07-2023, 08:13 AM   #4
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never pay out? sounds like the current insurance industry.. and also not possible...



lets take a classic at-fault state.. if you cause an accident, you as the driver are liable for that crash... how you pay for it is your own business.. you can pay for your accident with your own cash, or you can make a claim to an insurance company, but regardless the liability is yours...



if your insurance company is somehow a hidden LLC shell company that you simply fiold to chapter 7 when you destroy someone;s 150K G-wagen, then it simply comes back on you to write a check and pay the liability.. just because you are insured doesnt release you..


lets say you carry a 100,000 insruance policy but you destroy a 150k car and its your liability.. your ins co writes a 100k check and you get to write a 50k check..


that simple.. ( obviously there are more complexties but essentially thats how it works)...
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Old 12-07-2023, 08:23 AM   #5
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now onto how insurance companies work.. they take in premiums from a large group of people and bet on the fact that only a few are going to make payable claims..





so if 1000 people pay 1000 a year, thats a million bucks in revenue.. if 50 people require a 10k payout thats 500k off that bottom line... you can see how it works.. so a one man insurance company really has no business sense whatsoever.. now you can see why insurance companies prefer safe drivers and safe vehicles.. less chances those people need to file claims.. and predicting who files the most claims is big business that involves many many facets.. alas why certain companies are pulling out of areas like florida and california.. way too many claims there vs premiums revenue.. also 2 areas where reconcstruction costs are much higher than say the great lakes region, due to special construction requirements (hurricane resistant buildings cost a lot.. as do earthquake mitigation processes).. just because a wildfire is what burnt down a house doesnt mean that in california it doesnt have to be rebuilt without earthquake mitigation...



insurance companies have to show that they can pay out claims.. that they have a way to get liquidity out of any assets they have.. so if you and 20 skoolies who built safe busses without roof decks and wood stoves and who drive great all got together.. you would have to show to the regulators that if a hiugh percentage wiped out your busses on the same day you could make the claims whole...
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Old 12-07-2023, 09:32 AM   #6
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I figured as much but thought why not have the conversation. I imagine the state has minimum requirements.
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Old 12-07-2023, 11:41 AM   #7
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now onto how insurance companies work.. they take in premiums from a large group of people and bet on the fact that only a few are going to make payable claims..
That's not completely true. Insurance companies as arms of the financial industry also profit from investing the paid premiums and reaping the interest off it during the lag between payment of premiums and payout of claims. So as long as investment returns are good, insurers don't even need to keep claims smaller than premiums in order to be profitable.
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Old 12-07-2023, 11:46 AM   #8
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There are people who do this, and they have to prove first that they have the capital to cover a nominal amount of money for a payout. And the capital must have certain restrictions on the account regarding removal of funds except for express payouts, and if it goes under it's no longer functional.



The reason people do this is to avoid paying monthly insurance bills but satisfy the law requirements but requires the capital up front and locked up.


Plus if you were to wreck and pay out, you'd then have to close your LLC again because of regulation requirement violations and not drive until you come up with capital to fund your payout again, or you can just pay insurance like most people without the need for all of the capital up front.



You'd probably need minimum of $250-300k burning a hole in your pocket. Might be a good option if you are already rich. And of course I don't know all of the requirements but I've heard of some rich people doing this, but most of them also just pay the insurance.
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Old 12-07-2023, 12:06 PM   #9
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Own insurance comapny as in a single person . . .

If you are Musk or Bezos, yes certainly.

A Skoolie Owner Owned Insurance Underwriter is a more plausible (did I say plausible, or only more plausible?) option.

There is expertise in this group which will permit the safe construction of RVs from schoolbusses and other vehicles. Even one's with decks and woodstoves (about which insurers are pathologically phobic -- err, so are some members here ).

Theoretically it would work like this.

Regular purchasers have a converted/renovated RV, a SkOOIU inspector checks off on their or a converter's work at differing stages -- and annually. They pass the checks, they qualify for underwriting.

The fact a SkOOIU inspector signs off on it makes the vehicle insurable.

People pay a premium to both the insurance company (but it is low and reasonable) and to SkOOIU. The SkOOIU one is very low, we know we aren't letting problem vehicles get our paper.


A claim legitimately made comes out of the funds of both the insurer and SkOOIU.

Chief incentive for the inspector is they get the insurance underwriting for no premium to SkOOIU -- of course they have to get it done including training, and they can't approve their own work.

It is the kind of thing where the "first in" would need to capitalize it with their assets, house, 401ks, etc.

I did say "more" plausible, not plausible -- by that I mean, "closer to plausible".

I did volunteer my high speed camera towards such an effort to someone at some point. I don't remember hearing of it after that.
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Old 12-07-2023, 03:29 PM   #10
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State regulations are a real maze, and setting up an LLC won't guarantee an easy escape if things go south. Plus, insurance is all about trust—if you're dodging payouts, it's gonna catch up with you. Better dig deep into those state rules before diving into this wild idea.
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Old 12-13-2023, 08:00 PM   #11
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I know that lots of trucking companies self insure, but they post a several million dollar bond and also hire an insurance company to administer it for them. Not the kind of thing that you can do for a single vehicle.
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Old 12-13-2023, 08:46 PM   #12
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One current insurance company started, sort of, that way. USAA started with a group of about 25 Army officers who started insuring their own vehicles in the group. Of course, they have built a reputation of top-quality care and support...not attempting to find ways to avoid payouts. But I guess a group of like-minded, trusting folks could still possibly pool their risk and set up insurance (not that State MVDs would recognize that).
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Old 12-13-2023, 09:52 PM   #13
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Quote:
Originally Posted by cadillackid View Post
now onto how insurance companies work.. they take in premiums from a large group of people and bet on the fact that only a few are going to make payable claims..





so if 1000 people pay 1000 a year, thats a million bucks in revenue.. if 50 people require a 10k payout thats 500k off that bottom line... you can see how it works.. so a one man insurance company really has no business sense whatsoever.. now you can see why insurance companies prefer safe drivers and safe vehicles.. less chances those people need to file claims.. and predicting who files the most claims is big business that involves many many facets.. alas why certain companies are pulling out of areas like florida and california.. way too many claims there vs premiums revenue.. also 2 areas where reconcstruction costs are much higher than say the great lakes region, due to special construction requirements (hurricane resistant buildings cost a lot.. as do earthquake mitigation processes).. just because a wildfire is what burnt down a house doesnt mean that in california it doesnt have to be rebuilt without earthquake mitigation...



insurance companies have to show that they can pay out claims.. that they have a way to get liquidity out of any assets they have.. so if you and 20 skoolies who built safe busses without roof decks and wood stoves and who drive great all got together.. you would have to show to the regulators that if a hiugh percentage wiped out your busses on the same day you could make the claims whole...
See above 👏👏
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Old 12-14-2023, 03:09 AM   #14
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I know that lots of trucking companies self insure, but they post a several million dollar bond and also hire an insurance company to administer it for them. Not the kind of thing that you can do for a single vehicle.

I believe that some states have "self inured" laws and you have to post bonds equal to their minimum liability insurance amounts. It is supposedly good financial sense but you need to have the capitol to post the bonds and many companies are self insured. As an individual it would create an incentive to be a safer, more conscious driver.
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Old 12-14-2023, 06:34 AM   #15
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Is creating your own insurance company an option? Make it an LLC with every way out so you never have to pay out in case of an accident? Just thinking out loud hear? What are the state regulations on an insurance company?
Create your own insurance company, to insure yourself as the sole client? Nope you can not in any state in the USA, be insured by your own company.
That is not to say you cannot be self Insured. Many companies that operate multiple lease vehicles are self Insured. In order to do so you have to post a huge bond that is set by the state insurance regulatory commission.
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Old 01-05-2024, 11:17 AM   #16
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I worked for a contractor in Oregon about 15 years ago and he had put $15,000 in an account with the State of Oregon and was considered financially responsible and was self-insured ad long as his $15k was being held. Oregon Revised Statute 806.130 Self-insurance, here’s Oregons law for being self insured, it is definitely possible in Oregon.
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Old 01-05-2024, 11:20 AM   #17
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I get insurance from Good Sam for $99 a YEAR for every bus I’ve had though, so probably wouldn’t be worth it? I insured a firetruck as an rv through them once and they gladly accepted my $99 and I was legal.
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Old 01-05-2024, 12:06 PM   #18
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Do you have a link to Good Sam per chance or just look them up on the internet?
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Old 01-05-2024, 01:36 PM   #19
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just search "Good Sam RV Insurance" and it will pop right up, links are above my pay grade lol, I'm low-tech redneck 110%.
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Old 01-05-2024, 02:08 PM   #20
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Just quoted one of my buses in my driveway that i haven’t titled or registered yet, and I could have purchased the policy instantly. 2000 International 3400 7.3 Diesel 25’ dognose a lot like your Green one NWOleman, My quote was $61 for the first six months, and I got a ticket for red light and my front tires were definitely over the white line before red lol. But I did claim 1 traffic violation on this quote of $61 for 6 months. The only discount applied was for paying in full instead of installments. One of the only confusing parts might be when you’re choosing your manufacturer that made your bus, International’s are not on there. Scroll down through the manufacturer’s until you get to the M’s and choose “Manufacturer Not Found”, that will give you a spot to manually enter your manufacturer. That’s really the only confusing part of it in my opinion. If I remember right I’ve insured all the Semi Trucks as toterhomes?
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