Category Archives: vox

Why you should not buy insurance for rental cars, toys or video games

Sales people asking you if you want insurance at a counter leans on your anxiety and often leads you to end up buying it. Should you? Well, if it is rental car insurance, Vox says no and does so persuasively, here: Why rental car insurance is usually a rip-off – Vox.

Two other places I see people wasting money on insurance is toys and video games. Toys R Us used to push insurance on me all the time. Before you buy it, consider how your child plays with a toy. Chances are, the insurance doesn’t buy you anything. If it is the only toy you are going to buy your child and the only one they will play with for a long time, then sure. But most children will play intently with a toy for awhile and then the interest drops.

Likewise with video games. Perhaps your child will play with it for a year and it will be their favorite game. Most times, I’ll bet they play intently for awhile, and then the interest drops.  During that time, the chance of damage is very slight.

The insurance for toys and video games is low, but it buys you next to nothing. If the store said: do you mind if we charge you an extra 5-10% on this item, you would laugh and say “no!”. Yet that is what they are doing with insurance.

Skip it and use the few bucks to treat your child to a sweet or yourself to a coffee or give it to someone in need.

Economic inequality is rising, plain and simple.

As this piece at Vox shows , economic inequality really is rising, no matter how you fuss with the data. Possibly because of the skepticism from some, Vox explores this using differing analysis. The conclusion is always the same: economically, things are getting worse.

Data aside, this anecdotal argument at the end of the piece nails it for me:

Outside the sphere of political debate, you also see the real world impact of inequality. Merrill Lynch recommends an investment strategy to its clients based on the growing economic clout of plutocrats, Singapore Airlines is now selling $18,400 first class cabin tickets, and observers think Apple is going to start selling a $10,000 watch. Conversely, Walmart is now primarily worried about competition from dollar stores. The executives at these companies are not hysterical liberals trying to drum up paranoia about inequality, they are trying to respond to real economic conditions — conditions that have entailed very poor wage growth paired with decent returns for those proserous enough to own lots of shares of stock.

Worthwhile and recommended.