{"id":6839,"date":"2020-03-13T12:09:13","date_gmt":"2020-03-13T16:09:13","guid":{"rendered":"http:\/\/privacyfight.io\/?page_id=6839"},"modified":"2023-06-22T18:41:27","modified_gmt":"2023-06-22T22:41:27","slug":"7-self-insurance","status":"publish","type":"post","link":"https:\/\/privacyfight.io\/7-self-insurance\/","title":{"rendered":"P13 &#8211; Self Insurance"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-page\" data-elementor-id=\"6839\" class=\"elementor elementor-6839\" data-elementor-post-type=\"post\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-e16f95e elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"e16f95e\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-a2e637d\" data-id=\"a2e637d\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-4422860 elementor-widget elementor-widget-text-editor\" data-id=\"4422860\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<div class=\"vidseo_wrapper\" style=\"width: 100%;\">\r\n\r\n    \r\n    \r\n        <div class=\"vidseo_vimeo\">\r\n\r\n            <iframe title=\"vimeo-player\" src=\"https:\/\/player.vimeo.com\/video\/733232683\/?\" width=\"100%\" frameborder=\"0\" allowfullscreen><\/iframe>\r\n\r\n        <\/div>\r\n\r\n    \r\n    \r\n    <div class=\"vidseo_collapse\" style=\"\">\r\n        <div class=\"vidseo_btn\" style=\"\">\r\n            P13 \u2013  Self Insurance\r\n0:00\r\nOK, so today, I\u2019m going to go over self insurance.\r\n0:04\r\nIt\u2019s not for everybody, but it\u2019s based on the idea that you have the right to contract, you have the right to associate yourself with whoever you want, and you have the right to enter into agreements that &#8230;        <\/div>\r\n        <div class=\"vidseo_collapse_content\" style=\"\">\r\n            <p>P13 \u2013  Self Insurance<br \/>\n0:00<br \/>\nOK, so today, I\u2019m going to go over self insurance.<br \/>\n0:04<br \/>\nIt\u2019s not for everybody, but it\u2019s based on the idea that you have the right to contract, you have the right to associate yourself with whoever you want, and you have the right to enter into agreements that are not against public interests.<br \/>\n0:18<br \/>\nThat don\u2019t harm people, other damage, property, harm, people, things like that. You have the right to do those things.<br \/>\n0:23<br \/>\nSo, self insurance is nothing special, nothing different.<br \/>\n0:27<br \/>\nAll you\u2019re doing is your creating a means and documenting a means by which you can compensate someone, if you injure him while driving. So hopefully, it\u2019s a safe bet, so this is the consideration you want to have.<br \/>\n0:41<br \/>\nIf you\u2019re going to do this, you want to, you, it is because probably, you want to get away from these insurance companies, but you\u2019re going to take on the risk yourself.<br \/>\n0:48<br \/>\nNow, you can manage it, but it\u2019s not, it\u2019s not for everybody, like I say, as I\u2019ll explain.<br \/>\n0:55<br \/>\nSo what\u2019s, here\u2019s what you really need. You need the ability to pay.<br \/>\n0:59<br \/>\nIf you injure somebody now, that doesn\u2019t mean if you injure somebody it\u2019s that day the immediate might take years before you end up ever having to pay.<br \/>\n1:09<br \/>\nAnd the payment would be within the statutory limit. like 30 or $40,000, it\u2019s not going to be like you have insurance with Geico.<br \/>\n1:18<br \/>\nSomeone sues you for a million dollars and gets $500,000, it won\u2019t be like that.<br \/>\n1:23<br \/>\nThey won\u2019t, that money will be there, there\u2019s no legal duty free to do that, it\u2019s just that the insurance company, that\u2019s how it operates.<br \/>\n1:29<br \/>\nSo we don\u2019t have to operate that way. Because you\u2019re, you\u2019re not an insurance company, when you\u2019re doing this.<br \/>\n1:32<br \/>\nYou\u2019re just providing financial responsibility, so the obligation is, assuming the statute\u2019s on car insurance are even legal.<br \/>\n1:41<br \/>\nI know that that\u2019s the going policy right now, the current policy on how it works.<br \/>\n1:46<br \/>\nLet\u2019s not talk about that right now, but we\u2019re assuming that\u2019s all proper.<br \/>\n1:51<br \/>\nYou want to have the ability to compensate someone. You want to have the ability to take financial responsibility.<br \/>\n1:57<br \/>\nSo it\u2019s not insurance per se, it\u2019s the ability to be responsible financially and compensate someone for damages.<br \/>\n2:03<br \/>\nAll right, um, so what you need is, you need a company that you can register, that you own.<br \/>\n2:11<br \/>\nThis is Civil version, and you need evidence of financial responsibility.<br \/>\n2:15<br \/>\nLike if you ever stopped, you know, for a traffic ticket or something, you know, the cop\u2019s, they ask, you, let me see an insurance card, right? What they really want is evidence of financial responsibility. Here\u2019s what they consider evidence.<br \/>\n2:26<br \/>\nA little card.<br \/>\n2:27<br \/>\nIt\u2019s got your name, your car description, your van, your address, and the types of insurance coverage you have on the back.<br \/>\n2:32<br \/>\nPretty much, that\u2019s evidence of financial responsibility.<br \/>\n2:35<br \/>\nYou can create that on your computer, but you should have some, you can\u2019t just have a card.<br \/>\n2:41<br \/>\nYou should have the ability. So that\u2019s why I say you need a company.<br \/>\n2:44<br \/>\nAnd it needs to hold assets that are fairly liquid.<br \/>\n2:48<br \/>\nYou should be able to get access to cash quickly, so that\u2019s why I like using precious metals or property, some type of property.<br \/>\n2:54<br \/>\nI\u2019m not saying real estate, but something that can be sold, or you can use cash, it doesn\u2019t need to be the whole $40,000, It could be $20,000 in cash.<br \/>\n3:04<br \/>\nIt can be $5000 in Silver that you have set aside for that purpose. And, yeah, that is under the statutory limit.<br \/>\n3:11<br \/>\nChances are, you can always make up the difference in some way, OK?<br \/>\n3:15<br \/>\nI mean, if you want to, if you want to be, I\u2019m not trying to comply with the statute, I\u2019m just trying to comply with the spirit of what they\u2019re trying to do, so that you have financial responsibility.<br \/>\n3:23<br \/>\nSo you can testify if you have to, and meet the legal requirements of having insurance without being a victim of the insurance industry.<br \/>\n3:34<br \/>\nSo as much as you want to avoid being a victim of the insurance industry are being exploited or paying all these premiums, you still have to realize that you\u2019re taking on some risk.<br \/>\n3:42<br \/>\nThere\u2019s some serious risk here because if, if you mean, you have to pay for things like that, you would normally pay with your deductible So like a shopping cart smashing into your car or a little bumper, things like this. You know, the parking lot.<br \/>\n3:56<br \/>\nKey key scratches on your car, vandalism, things like that. These are things you have to pick up, you have to cover those, which you would normally cover anyways.<br \/>\n4:03<br \/>\nThe difference is, without a third party insurance carrier, your rates won\u2019t go up. That\u2019s kinda nice.<br \/>\n4:09<br \/>\nBut imagine having a catastrophic injury being in a car wreck your car flips, and rolls over the, you know, the embankment, and to injure somebody else.<br \/>\n4:18<br \/>\nAnd now you\u2019ve got this catastrophe.<br \/>\n4:21<br \/>\nAnd you\u2019ve taken on that risk. And so that\u2019s why I say it\u2019s not for everybody.<br \/>\n4:25<br \/>\nThis self insurance, what I\u2019m describing here does not cover catastrophic. So you really have to consider this.<br \/>\n4:30<br \/>\nDo you want to cover catastrophic?<br \/>\n4:34<br \/>\nIn my situation, like I would, I would be willing to cover my wife because, I mean, as much as I don\u2019t like her driving, she does the safe driver.<br \/>\n4:44<br \/>\nSafe enough. And so I cover her, Mike. My company covers her.<br \/>\n4:49<br \/>\nI taught her how to drive. So in that sense, I have to take that responsibility.<br \/>\n4:52<br \/>\nI think my mother-in-law, on the other hand. I love her, but I\u2019m just not going to cover her. And everybody laughs when I say that. I just don\u2019t like how she drives. She makes me nervous. And I\u2019m not, I\u2019m not very nervous when I drive a car.<br \/>\n5:03<br \/>\nSo when I\u2019m weather, if I\u2019m in her car, I\u2019d probably get nervous the way she drives, so I will not cover her. She has her own things. She doesn\u2019t care. She, she pays a third party insurance company.<br \/>\n5:12<br \/>\nSo that\u2019s always a family joke. Just keep that in mind. It\u2019s real, it\u2019s a real thing. It\u2019s not a joke. You are seriously taken on a big liability here.<br \/>\n5:23<br \/>\nAlright, so you risk someone being, you know, someone\u2019s suing you so someone could sue you and then your company would be the one to compensate the individual.<br \/>\n5:31<br \/>\nSo you could have an attorney represent your interests.<br \/>\n5:34<br \/>\nYou could have an attorney represent the company, or you could choose not to because you\u2019re limited liability is the statutory limit.<br \/>\n5:42<br \/>\nI mean, let\u2019s say someone sues you for a million dollars and your company is only only covering you for the statutory limit, which is 40,000.<br \/>\n5:49<br \/>\nRight, so this could be leveraged, where you could negotiate, what the attorney said.<br \/>\n5:53<br \/>\nLook, my insurance company\u2019s private company, it\u2019s not trading on Wall Street, OK? It\u2019s only going to compensate your client 30 or $40,000, do you really wanna go forward with this? So you actually have a little bit of leverage being sued, but it is a possibility that you\u2019ll have to deal with something like that. I have never had to, I\u2019ve been doing it, let\u2019s see.<br \/>\n6:10<br \/>\nOh.<br \/>\n6:12<br \/>\n20 years self insured.<br \/>\n6:14<br \/>\nSo I\u2019m a safe driver, so I\u2019ve been in a couple of little small things, but usually, it\u2019s the other guy that has to pay.<br \/>\n6:22<br \/>\nI would just hope that, if someone else has self insurance, that he\u2019s going to be responsible.<br \/>\n6:26<br \/>\nIf he enters my car, you know, the insurance companies, for the most part, have paid, have, you know, if I, if someone\u2019s damaged my car, I\u2019ve been able to get compensation.<br \/>\n6:36<br \/>\nSo hopefully, if people do use self insurance, they are going to be irresponsible.<br \/>\n6:40<br \/>\nIf I injure somebody, I\u2019m definitely going to make make good on it, OK, so that\u2019s just my personal ethic.<br \/>\n6:48<br \/>\nSo when you register, give an example.<br \/>\n6:51<br \/>\nIf I register in Florida with self insurance, what will happen is the DMV once proof of that, right. So it wants the insurance card, and it has to have an insurance code. I\u2019ve never tried it without the insurance code.<br \/>\n7:04<br \/>\nI don\u2019t know what your state is, but in my state, Florida recognizes self insurance because we have the rights contract. Every state is like that.<br \/>\n7:11<br \/>\nThe insurance code for self insurance in the state of Florida is 11111.<br \/>\n7:17<br \/>\nIt\u2019s a series of five ones. It\u2019s very easy. It\u2019s on my insurance card. Show.<br \/>\n7:21<br \/>\nThat to the DMV people, I show that when I buy a car, the dealer wants to make sure that I\u2019m covered, and this sort of thing, and they\u2019ll call the number on the back. I mean, I just have voicemail on the back, I don\u2019t even think my numbers good anymore.<br \/>\n7:32<br \/>\nIt\u2019d be funny, though, if you put your phone number on the back and then you get the dealership buying a new car and he checks to make sure you have insurance, and then he calls you and your phone rings right there.<br \/>\n7:40<br \/>\nYou know, You can just tell him, look, this is my company, I\u2019m self insured, and he\u2019ll be like, OK, so that shouldn\u2019t be a problem.<br \/>\n7:46<br \/>\nI mean, if you didn\u2019t have a problem with a dealer, I\u2019ve never had a problem. But if you had a problem with a dealer, and the self insurance thing, you could just tell them to deliver the car to your house, and it might cost you 100 bucks or something.<br \/>\n7:57<br \/>\nBut he won\u2019t then require you to have insurance if he delivers the car vetoes at tier into your driveway than that issues resolved. So I just wanted to mention that just in case you\u2019re in that situation. So here\u2019s what I\u2019d like to do this.<br \/>\n8:09<br \/>\nThe way I like to do it is, I use a limited liability company and I\u2019m going to, the limited liability company is the insurance company.<br \/>\n8:23<br \/>\nIt doesn\u2019t follow anything. Again, it\u2019s a pastor. It\u2019s just a holding company that\u2019s gonna hold assets.<br \/>\n8:27<br \/>\nI\u2019m going to make it the general partner in the field owner. Now, I don\u2019t always do it this way, but this is probably my best recommendation.<br \/>\n8:35<br \/>\nI\u2019m going to use a limited liability partnership as the owner for each vehicle.<br \/>\n8:40<br \/>\nYou can do this with a debt, a loan on the car, or not, every state\u2019s a little bit different.<br \/>\n8:46<br \/>\nAnd I would make the insurance My insurance company.<br \/>\n8:50<br \/>\nThe LLC, I would make that the general partner in the limited liability partnership, and I would make myself the limited partner, and then that partnership is registered as the owner of the vehicle.<br \/>\n9:01<br \/>\nIf you want to title it in a, in a structure, it\u2019s not necessary, I think you can title the car in your name and be just fine. I do that too.<br \/>\n9:10<br \/>\nI\u2019ve used different examples, so just play with that. I mean, I can create this structure for you if you want to just let me know, All right. So that\u2019s the simple version of it. It\u2019s actually, you know, I\u2019ve used it pretty well for 20 years. I Would recommend it, but again, you gotta be aware of the risks. And I\u2019m not covered for catastrophic right now. I probably should consider that. I think it\u2019s a good responsible thing to do. But for right now, I mean, this works.<br \/>\n9:34<br \/>\nAnd if you want some more details, of course just asked me. I know I\u2019m going to do a follow up video here. So, alright, so that\u2019s good for here.<br \/>\n9:40<br \/>\nI\u2019m going to stop right here.<\/p>\n        <\/div>\r\n    <\/div>\r\n\r\n    \r\n<\/div>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-064fe20 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"064fe20\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-bf2e88e\" data-id=\"bf2e88e\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-4546a7f elementor-widget elementor-widget-spacer\" data-id=\"4546a7f\" data-element_type=\"widget\" data-widget_type=\"spacer.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<div class=\"elementor-spacer\">\n\t\t\t<div class=\"elementor-spacer-inner\"><\/div>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-4d79596 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"4d79596\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-e3d2add\" data-id=\"e3d2add\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-0d7a5f4 elementor-widget elementor-widget-text-editor\" data-id=\"0d7a5f4\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p><strong>Summary<\/strong><\/p><p style=\"padding-left: 40px;\">1. John Jay describes the concept of self-insurance as being based on individual rights to contract and enter agreements that don&#8217;t harm public interests.<br \/>2. Self-insurance is a means to compensate others if you injure them while driving, substituting traditional insurance companies and taking the risk on oneself.<br \/>3. Self-insurance requires the ability to pay, but compensation doesn&#8217;t have to be immediate and it would fall within statutory limits, unlike traditional insurance policies.<br \/>4. One needs a company for this process to hold fairly liquid assets. It can include precious metals, property, or cash set aside for insurance purposes.<br \/>5. John Jay\u00a0suggests creating evidence of financial responsibility, akin to an insurance card, which can be created on a personal computer, illustrating ownership of the vehicle and the insurance coverage.<br \/>6. There&#8217;s a certain risk associated with self-insurance, as it doesn&#8217;t cover catastrophic incidents, so it&#8217;s not a viable option for everyone.<br \/>7. John Jay\u00a0humorously points out his personal choice not to cover his mother-in-law due to her risky driving, underlining that self-insurance involves personal judgment and risk evaluation.<br \/>8. If you&#8217;re sued while self-insured, the statutory limit could serve as leverage, as your company is only liable up to this amount, not potentially higher amounts demanded in a lawsuit.<br \/>9. In the example given, the speaker explains how self-insurance is acknowledged in Florida and even has a specific insurance code for it.<br \/>10. John Jay\u00a0recommends setting up a limited liability company as the insurance company and creating a limited liability partnership for each vehicle.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-ab4224f elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"ab4224f\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-741a2fc\" data-id=\"741a2fc\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>P13 &#8211; Self Insurance<\/p>\n","protected":false},"author":131,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_uf_show_specific_survey":0,"_uf_disable_surveys":false,"footnotes":""},"categories":[124],"tags":[],"_links":{"self":[{"href":"https:\/\/privacyfight.io\/wp-json\/wp\/v2\/posts\/6839"}],"collection":[{"href":"https:\/\/privacyfight.io\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/privacyfight.io\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/privacyfight.io\/wp-json\/wp\/v2\/users\/131"}],"replies":[{"embeddable":true,"href":"https:\/\/privacyfight.io\/wp-json\/wp\/v2\/comments?post=6839"}],"version-history":[{"count":7,"href":"https:\/\/privacyfight.io\/wp-json\/wp\/v2\/posts\/6839\/revisions"}],"predecessor-version":[{"id":24946,"href":"https:\/\/privacyfight.io\/wp-json\/wp\/v2\/posts\/6839\/revisions\/24946"}],"wp:attachment":[{"href":"https:\/\/privacyfight.io\/wp-json\/wp\/v2\/media?parent=6839"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/privacyfight.io\/wp-json\/wp\/v2\/categories?post=6839"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/privacyfight.io\/wp-json\/wp\/v2\/tags?post=6839"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}