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Valued Member
Posts: 39
Registered: ‎11-15-2009
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Re: What is the purpose of a 100k limit on a credit card?

[ Edited ]

30k for just the annual insurance? What's a ring like that cost? There's no way it appreciates in value by 30k a year? And what businesses have annual insurance premiums of 50 and 100k? I guess doctors and stuff but I have 3 businesses that each gross over 1M but the insurance premiums are all under 10k. I also have 6 cars valued at over 50k to 90k each with an umbrella and each vehicle runs under 100/month through Allstate. You must be grossing some serious numbers to justify those kinds of insurance premiums. Also, I do have a pd card and nfcu with 50cl's. I think they're just nice to have as a reference for applications for other credit.

Senior Contributor
Posts: 4,694
Registered: ‎02-23-2011
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Re: What is the purpose of a 100k limit on a credit card?

[ Edited ]

I know a few Doctor's who routinely pay around $125K - $150K for malpractice insurance, and that's on the low side.  We have many buisness owners who when you combine their bops, home & auto, life, and health are easily in the $30k range.

 

You pay Allstate for both comp, collision, and liability for $100 per month on a 70K car?  May I please have your agent's name?  I'm swithing my auto insurance immediately!

 

PS -  Many "normal" low risk businesses grossing $1 Million using a bop will have premiums in the $10k range.  It depends on the risk characteristics of a particular business.  There are many in the medical professions, law professons, investment professions, etc...where the cost of insurance isn't predicated on revenue, but the potential liability of an error, omission, or oversight of a particular service that could potentially have huge liability.

 

 

Valued Contributor
Posts: 2,300
Registered: ‎01-22-2012
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Re: What is the purpose of a 100k limit on a credit card?


Brianinpa18330 wrote:

30k for just the annual insurance? What's a ring like that cost? There's no way it appreciates in value by 30k a year? And what businesses have annual insurance premiums of 50 and 100k? I guess doctors and stuff but I have 3 businesses that each gross over 1M but the insurance premiums are all under 10k. I also have 6 cars valued at over 50k to 90k each with an umbrella and each vehicle runs under 100/month through Allstate. You must be grossing some serious numbers to justify those kinds of insurance premiums. Also, I do have a pd card and nfcu with 50cl's. I think they're just nice to have as a reference for applications for other credit.


When it was last appraised, the ring is valued slightly under $1M. It's a pink diamond in a custom platinum setting with 90 other diamonds in it. The setting aside, pink diamonds aren't exactly cheap. Since we travel internationally, the policy needs to cover us in multiple countries and that pushes up the cost.

 

Under normal circumstances, there's no way we'd ever consider such a thing. We pull in around 200k per year (125k for me and 75k for my financee), so the purchase price was obviously out of reach. My parents have an AGI of about $3.9M, so it was a still a serious purchase but doable for them.

 

Once my father gets an idea in his head, there is literally no stopping him. He was hell-bent to find the right diamond as soon as my financee mentioned pink. She likes pink in general, but had absolutely no clue how expensive pink diamonds were. We heard the price and said forget about it. He definitely didn't forget. He had it waiting for us when we visited the following Christmas.

 

For us it's not an investment. However when he flew over to inspect the diamond, they told him that many investors had been snapping up pink diamonds like crazy. If a diamond is valued at 1M, it can easily appreciate 30k in one year. That's 3% pa. Hell, I can go to my local bank here in Australia and take out a CD for 5% or higher.

 

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Valued Member
Posts: 39
Registered: ‎11-15-2009
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Re: What is the purpose of a 100k limit on a credit card?

One is a 2012 Escalade platinum, msrp 87k and another is 2013 mustang shelby gt500, msrp 71k. I know the mustang is around 1300 a year and the escalade is under 1200. Those are on commercial policies with a million umbrella through merchants. I'll get exact info tomorrow. Other cars are through allstate. I never knew some insurance premiums were so high! I coudnt pay 30k for a ring, let alone that for insurance on one! I guess anyhing can appreciate in value, what do I know.
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