Bonzah is at the cutting edge of technology. We are curious people. We also want to find the very best rental car-damage insurance for our clients. We had our cautious hat on while we investigated digital currencies though. Because we know if a premium payment does not reach an insurer timeously, the coverage ceases period.
But First, What is a Digital Currency All About?
The hype is flying around the internet like dog hair when it shakes in spring. The bare facts are:
#Digital Currency is an uncontrolled store of value residing on hundreds of computers. Anybody can start a digital currency business. We may not even know where they are.
# Digital currency value does not fall under government control. Hence, if peer-to-peer users think it’s great, the value goes up. If things go the other way, the value is in free fall
Who Accepts Payments with digital currencies?
The value is virtual. We can’t withdraw our digital currency at auto banks, or buy lunch with them from a burger stand in a park. However, we can pay internet merchants with digital currency provided they accept it. In January 2017, the Zebra blog estimated 100,000 ecommerce merchants already had. That number is probably millions now.
Where Does that Leave Insurance Companies?
Disruptive start-up insurance companies may accept digital currency because they don’t have investors to account to. If they fold, the very bright people behind them may simply restart another clone. However, those of us in the mainstream insurance business are adopting a more conservative approach. We have a duty to provide our clients with rock-solid damage insurance cover for the rental cars they hire.
The big insurance companies are continuing with a conservative approach of only accepting hard currency payments by credit / debit cards, electronic funds transfers, and a few rock solid payment platforms such as paypal, and apple pay. This makes a deal of sense. If your insurer loses their store or value, you lose your coverage, period, too.
So How Safe Is Bonzah in All This?
The Arch Insurance Company - rated A+ Superior by A.M. Best Company - underwrites the insurance we sell on this site. You pay us by Visa, MasterCard, American Express or Discover only. There’s not a digital currency in sight to worry about. The U.S. Gold Bullion Depository underwrites all the hard currency we exchange here in trust.
Image: The U.S. Gold Bullion Depository (Circa 1930): Boston Library BY Public Domain