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Why BMW's ED Insurance is so good
And by "good" I mean the coverage is comprehensive and has no deductible for damage.
It covers you and other licensed drivers with you....the car will be taken care of from little scratches to big dents...all for free.....here's why:
YOU PAY A FORTUNE FOR THE INSURANCE!!!
I just calculated that my little baby E90 costs the equivalent of $8,841/year under the ED insurance by Gerling. That's 276 Euro or $331 for 14 days....well...do the math....it's $8841 per year.
I know that the premium is built-in to the price of the ED but we still pay for it and I'm not complaining. I just thought I'd calculate the annualized cost.
| | Reply » Why BMW's ED Insurance is so good |
I'm not sure why, but I'll rant a little about insurance.
Same math applies to rental car insurance or flight insurance purchased at the airport or insurance that is added on automatically (service provided by CC companies) when an airline ticket is purchased. These are all very very expensive!
Generally speaking, insurance is a very bad bet and most often a high profit product for the insurance provider. Ever wonder why banks and insurance companies have the tallest buildings in every city? I have been purchasing insurance for my entire life and I have made one claim, I'm way behind on this gamble, as are most of us, hence the big buildings and strong balance sheets of insurance companies.
If possible, only insure yourself for catastropic events. Do this by maintaining high deductables and never double up on coverage. Medical coverage on an auto policy is a classic mistake. Most of us have medical coverage that will cover any medical expenses incurred in an accident, why pay for it again on an auto policy (occupant coverage may be different as they may not have medical insurance).
Insurance should only be used to prevent major financial catastrophy to yourself, not for minor financial events.
One last point on this rant, when you really need insurance, most insurance companies will not offer it unless forced to by government, or it will be so expensive as to not make financial sense (to the insured). Try buying landslide insurance in Laguna Beach! You're in good hands baby!!
| | Reply » Why BMW's ED Insurance is so good |
Quote: And by "good" I mean the coverage is comprehensive and has no deductible for damage.
It covers you and other licensed drivers with you....the car will be taken care of from little scratches to big dents...all for free.....here's why:
YOU PAY A FORTUNE FOR THE INSURANCE!!!
I just calculated that my little baby E90 costs the equivalent of $8,841/year under the ED insurance by Gerling. That's 276 Euro or $331 for 14 days....well...do the math....it's $8841 per year.
I know that the premium is built-in to the price of the ED but we still pay for it and I'm not complaining. I just thought I'd calculate the annualized cost. | I calculated that years ago for my first ED and found it equally high.
Having dealt with German insurance companies on a claim (when I was a student, I accidentally found myself in my 320i upside down on the A8), they need to charge a lot to cover the cost of the many bureaucrats (yes, typisch deutsch) in their customer "service" centers. 
Seriously, though, the ED insurance is fairly short term and probably higher risk (the driver is unfamiliar with the car, unfamiliar with the environs, etc.). No one would pay that much for real insurance.
| | Reply » Why BMW's ED Insurance is so good |
Indeed, the problem is that there is no claim history data for the driver(s). Normally, that puts them in the second highest rate category. It appears, however, that BMW NA has managed to lump all their ED customers into a risk pool and negotiated a lower rate. As I have written before, most likely you would have to pay even more if you were to get the same insurance on your own.
Out of curiosity, what are you using to calculate $8841 per year? The insurance schedule linked to at bmw usa quotes much lower rates for all the 3-series: $145 to increase the insurance coverage by another half a month or $1830 to increase it to six months. I work that out as $3500-4000 per year.
For comparison, I ran a quick rate check to insure an E90 330i privately in Munich with less generous coverage and was quoted 4250 euros / $5141 per year (including a 5% discount for booking over the internet).
| | Reply » Why BMW's ED Insurance is so good |
Quote: And by "good" I mean the coverage is comprehensive and has no deductible for damage.
It covers you and other licensed drivers with you....the car will be taken care of from little scratches to big dents...all for free.....here's why:
YOU PAY A FORTUNE FOR THE INSURANCE!!!
I just calculated that my little baby E90 costs the equivalent of $8,841/year under the ED insurance by Gerling. That's 276 Euro or $331 for 14 days....well...do the math....it's $8841 per year.
I know that the premium is built-in to the price of the ED but we still pay for it and I'm not complaining. I just thought I'd calculate the annualized cost. | Actually Marcus330i when I picked up my car I remember the guy telling me that there was no deductible if I decided to get an equivalent vehicle, otherwise there would be a percentage which I was responsible for(I think 10%) if I opted not to get another BMW. Who would opt not to get a replacement. 
| | Reply » Why BMW's ED Insurance is so good |
Quote: | Who would opt not to get a replacement. | A scammer? Seems like a pretty good way to screen them out.
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Why BMW's ED Insurance is so good