I'm going to put this into the ED Guide thread in this forum. Please give it the once over for error corrections and critiques:
Death Penalty and Insurance Management
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Insurance Costs, insurance is 5%, maximum loan available is $200k.
The best way to manage the E
Death Penalty is not to die! (nyuk, nyuk).
However, depending on your gaming background, you may regard the Death Penalty in ED as significant, maybe excessive. To coin it properly, the ship replacement penalty is steep. You always survive.
Although the starter ship (
Sidewinder) is free to replace, the optional upgrades could be worth $400k. This means that replacement value would be $20k (5%) to restore your Sidewinder with upgrades. As of Jan 2015, my Sidewinder with upgrades costs $8000 to replace.
For the
Cobra which sells for $375k and with equipment could top out at a million. That would be $50k to cover insurance.
To continue the example, the
Asp sells for $6.7M. Ive not looked into upgrade equipment for it, but lets say its upgraded to $9M. That would be $450k for insurance. The Cadillac would be the
Anaconda which is priced at $147M before upgrades! Rounded up to $150M, that would be $7.5M as in $7,500,000 for insurance. Honestly I wonder if Id ever want to own an Anaconda...
Worse Case Scenario
Forget the
Anaconda. Worst Case is you lose your
Asp without adequate funds to replace it and either end up flying a Sidewinder or quit the game in disgust.
Managing Insurance and your bank account
For insurance management, lets stick with my example of owning the
Asp,
Cobra and
Sidewinder. To fly the Asp you really want to have $520k ($450k + $50K + $20K) in the bank. This represents the replacement cost for each ship. But you could get by with $500k if you dont mind having to break out the
Sidewinder for multiple losses. Keep reading.
Lets say you have $500k and your
Asp goes poof. $450k replaces the Asp, leaving $50k in the bank. Do you keep flying the
Asp? Only if you like living dangerously. Insurance wont cover it. So instead you break out the
Cobra with the intent of building funds back up to $500k, but lets imagine that the bad luck continues and the
Cobra goes poof. Fortunately $50k covers the
Cobra, but now your bank account is zero. What now? If you continue to fly the
Cobra you are in a precarious situation, but not as precarious if you were still flying the
Asp. With the second loss of the Cobra, you could up take out a loan ($50k, max limit $200k) to replace the ship and its upgrades, but now the bank owns you.
With zero in my account, I would not be flying the
Cobra at all. Instead, Id revel in the nostalgia of flying my upgraded
Sidewinder until I had restored its $8k replacement value. In this way if a loan is to be taken, it will only be for $8K, not $50k. And Id continue flying the
Sidewinder until I had restored my account back to$58K, enough to replace both the
Cobra and the
Sidewinder. At this point it would be safe to break out the
Cobra to restore $500K to my account. If you are decent at dogfighting, you can make this back, free lance bounty hunting in about 2-4 evenings of good hunting.