Ryan Winters
New Member
- 2
Hello all,
I was doing a bit of research on self-insurance laws and saw that in most states, only companies are able to realistically self-insure since most states require a self-insurer to have at least 25 vehicles.
I've been trying to think of a way to get around this requirement as an individual wanting to self-insure just a few cars. I'm a college student with no background in insurance laws and regulations, so I have no idea if this theoretical idea would ever actually work. But, would it be possible to create my own personal insurance company, register it with the state and take all of the necessary steps to legitimize it, and then sell myself an insurance policy, acting as the sole customer and paying tiny monthly premiums back into my own company? How much would this cost, including all of the necessary certifications/licenses? I assume I would need X thousands of dollars for reserves from the start, but could this potentially be a money saver over the long-term since I could invest my own company's reserves and then close the company later in life, retaining all of the money I had paid into it over the years?
Obviously I want to know first and foremost if this would even work, but if it would, are there other considerations that I need to take into account? Is this a good idea for someone with the resources to pull it off, or a waste of time and money?
Any insights would be greatly appreciated!
I was doing a bit of research on self-insurance laws and saw that in most states, only companies are able to realistically self-insure since most states require a self-insurer to have at least 25 vehicles.
I've been trying to think of a way to get around this requirement as an individual wanting to self-insure just a few cars. I'm a college student with no background in insurance laws and regulations, so I have no idea if this theoretical idea would ever actually work. But, would it be possible to create my own personal insurance company, register it with the state and take all of the necessary steps to legitimize it, and then sell myself an insurance policy, acting as the sole customer and paying tiny monthly premiums back into my own company? How much would this cost, including all of the necessary certifications/licenses? I assume I would need X thousands of dollars for reserves from the start, but could this potentially be a money saver over the long-term since I could invest my own company's reserves and then close the company later in life, retaining all of the money I had paid into it over the years?
Obviously I want to know first and foremost if this would even work, but if it would, are there other considerations that I need to take into account? Is this a good idea for someone with the resources to pull it off, or a waste of time and money?
Any insights would be greatly appreciated!