Author Topic: Auto insurance rates  (Read 685 times)

FireAnt

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Auto insurance rates
« on: January 16, 2019, 07:51:43 AM »
I live in Michigan, home to no fault insurance (yay high rates!). As I've started this FI journey, I am trying to scrutinize my expenses. Geico offers the lowest payment for insurance from when I compared a few years ago. I am looking at my current deductible for collision. It's at $500 broad form and the thought occurred to me-- I have an emergency fund! Why am I spending extra money for a mid to lower deductible when I would be set if I had to pay $1000 for an accident?

I emailed a quote to change it from $500 to $1000 deductible and it would save me a difference of $60.80 for 6 months ($10/month). Is there any reason to keep it that I'm not thinking of? This makes sense, correct?

Next up... internet ;)

Trying2bFrugal

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Re: Auto insurance rates
« Reply #1 on: January 16, 2019, 12:35:19 PM »
Welcome to No fault Insurance mess..lol

I was with Geico for several years even after moving to Michigan, later learnt they have been charging me high.
So switched to Michigan farmers bureau. Progressive was close but MFB gave better rate with home owner coverage (I rent, it still covers me).
So check other options too.

For broad factor, if you are comfortable driving then just go for 1000. It doesnt hurt as long as the other person have driver license atleast.

Reggie

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Re: Auto insurance rates
« Reply #2 on: January 16, 2019, 04:40:58 PM »
Good idea. I think we can all afford to assume a little more risks.  I took off all physical damage coverage from my car a couple years ago and it was still worth about $15,000. (now closer to $10,000).

If something happens, yes I would have to buy a new $10,000 vehicle out of pocket.  But if you run the numbers over a long period of time (you will drive probably most of your life) and based on statistics and assuming you are a good driver, you come out ahead. 

FireAnt

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Re: Auto insurance rates
« Reply #3 on: January 16, 2019, 04:48:01 PM »
Good idea. I think we can all afford to assume a little more risks.  I took off all physical damage coverage from my car a couple years ago and it was still worth about $15,000. (now closer to $10,000).

If something happens, yes I would have to buy a new $10,000 vehicle out of pocket.  But if you run the numbers over a long period of time (you will drive probably most of your life) and based on statistics and assuming you are a good driver, you come out ahead.

Go you! I am not quite at that level - largely because my car is worth more than that currently. On a related note, I also read in previous threads that others have actually increased their liability coverage because their net worth has increased so much.

Better Change

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Re: Auto insurance rates
« Reply #4 on: January 17, 2019, 06:59:26 AM »
Former Michigan resident chiming in.  We had GEICO until we chose to bundle our home/auto with another company.  I've lived in six states, and Michigan has been the worst for auto insurance.  I'm now in Delaware, which is the second worst (it has something akin to, but not quite the same as no fault).  I think my current deductible is $2500.  I drive a beater car that's worth less than that, though. 

Good luck with internet.  It's a racket.  We had Charter and did basically everything we could to keep the rates down (moved, left and returned, threatened to leave, ranted, etc.), but they had jacked us up to $69.99/month by the time we left Michigan.  AT&T had what looked like better deals until you realized that you would be paying more per MB overall.  Those were our only two choices at the time.  Thankfully I have returned to civilization, and there are multiple providers in my current area.

And FYI - the cell service on Ting (Sprint) is basically zilch north of the Thumb.

FireAnt

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Re: Auto insurance rates
« Reply #5 on: January 17, 2019, 07:45:48 AM »
Former Michigan resident chiming in.  We had GEICO until we chose to bundle our home/auto with another company.  I've lived in six states, and Michigan has been the worst for auto insurance.  I'm now in Delaware, which is the second worst (it has something akin to, but not quite the same as no fault).  I think my current deductible is $2500.  I drive a beater car that's worth less than that, though. 

It's probably important to note that we are insuring a 2016 Subaru Forester and a 2012 Ford Focus. So definitely have some value. We have it bundled with our home insurance.

Quote
Good luck with internet.  It's a racket.  We had Charter and did basically everything we could to keep the rates down (moved, left and returned, threatened to leave, ranted, etc.), but they had jacked us up to $69.99/month by the time we left Michigan.  AT&T had what looked like better deals until you realized that you would be paying more per MB overall.  Those were our only two choices at the time.  Thankfully I have returned to civilization, and there are multiple providers in my current area.

Our current choices are Comcast (what we have now) and AT&T. I always threaten to leave Comcast and go to AT&T and I usually negotiate a decent price. Except the other day in a local FI group I found out what others are paying ($30 to my $50). Sadly I have no leverage until my contact ends.... but when it does ;)

patchyfacialhair

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Re: Auto insurance rates
« Reply #6 on: January 17, 2019, 01:52:50 PM »
Former Michigan resident chiming in.  We had GEICO until we chose to bundle our home/auto with another company.  I've lived in six states, and Michigan has been the worst for auto insurance.  I'm now in Delaware, which is the second worst (it has something akin to, but not quite the same as no fault).  I think my current deductible is $2500.  I drive a beater car that's worth less than that, though. 

Good luck with internet.  It's a racket.  We had Charter and did basically everything we could to keep the rates down (moved, left and returned, threatened to leave, ranted, etc.), but they had jacked us up to $69.99/month by the time we left Michigan.  AT&T had what looked like better deals until you realized that you would be paying more per MB overall.  Those were our only two choices at the time.  Thankfully I have returned to civilization, and there are multiple providers in my current area.

And FYI - the cell service on Ting (Sprint) is basically zilch north of the Thumb.

Unsolicited advice: if the book value of your vehicle is less than your deductible (indicating that you're carrying comprehensive and/or collision for that vehicle) you're literally paying for a coverage that won't benefit you in any way. Remove comprehensive and collision from the car!