Prop Strikes

"Wrong. The most expensive plane you'll ever fly is about $1000-the cost of
the insurance deductable."


Well, that's a view, but it's not a very good one in my opinion. [...]

It's also bad economics to think that passing a cost to the insurance
company is getting rid of it altogether: you're in fact passing it to
all the people who carry insurance.

I think the point was that the time to think about the plane only being
worth the deductable is when you have an emergency and have to decide
between risking the plane to save the people, and risking the people to
save a one million dollar plane. At that point, think of it as a one
thousand dollar plane.

Jose
--
Nothing is more powerful than a commercial interest.
for Email, make the obvious change in the address.

His point was that you don't risk your, or your passengers' butts, trying to
save the plane. Keep the props turning and let the insurance pay for the
teardown rather than medical and funeral expenses.

mike regish

"Cub Driver" wrote in message
...
On Sat, 19 Feb 2005 17:44:44 -0500, "mike regish"
wrote:

"Wrong. The most expensive plane you'll ever fly is about $1000-the cost
of
the insurance deductable."

Well, that's a view, but it's not a very good one in my opinion. If
you pay a million dollars for an airplane, it costs a whole lot more
than the insurance deductible: for one thing, you must pay the
"opportunity cost" that that million dollars would have earned for
you, say $50,000 a year if it were invested in a stock index fund over
the years and returned a mere 5 percent in dividends and appreciation.

It's also bad economics to think that passing a cost to the insurance
company is getting rid of it altogether: you're in fact passing it to
all the people who carry insurance.




-- all the best, Dan Ford

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Warbird's Forum: www.warbirdforum.com
Piper Cub Forum: www.pipercubforum.com
the blog: www.danford.net

On Sun, 20 Feb 2005 12:53:40 GMT, Jose
wrote:

I think the point was that the time to think about the plane only being
worth the deductable is when you have an emergency and have to decide
between risking the plane to save the people, and risking the people to
save a one million dollar plane. At that point, think of it as a one
thousand dollar plane.

Oh, good point. Yes, I would try to think of it like a $20 digital
watch: if the battery gives out, throw it away and buy another!


-- all the best, Dan Ford

email (put Cubdriver in subject line)

Warbird's Forum: www.warbirdforum.com
Piper Cub Forum: www.pipercubforum.com
the blog: www.danford.net

Oh, good point. Yes, I would try to think of it like a $20 digital
watch: if the battery gives out, throw it away and buy another!

Not long ago I bought a digital watch at Dollar Tree. One guess as to
what it cost. Worked fine for about a month, at which time the battery
gave out. But at that price, who cares? Just buy another one.

I also bought a scientific calculator at Dollar Tree awhile back.
The same logic applies. Amazing, considering what one would have
paid for these items 20 years ago.

David Johnson