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Learning, Sharing, and Teaching => Ask a Mustachian => Topic started by: quelinda on February 04, 2017, 10:06:09 AM

Title: Car Insurance
Post by: quelinda on February 04, 2017, 10:06:09 AM
I'm getting ready to call around for car insurance quotes -- it's been a long time since I've done that and our rates have been creeping up. I'm not sure if we have the coverage we need, though, so I thought I'd ask for others' opinions.

We own two vehicles outright. They are each worth about $5000 and $6000, but we do not yet have an emergency fund (I'm working on that -- I hope to have it up to $15,000 by the end of the year).

Our current coverage is:

liability-bodily injury:                                          $250,000 each person & $500,000 each occurrence
property damage:                                               $100,000
uninsured motorists:                                           $250,000 each person & $500,000 each occurrence
underinsured motorists:                                      $250,000 each person & $500,000 each occurrence
medical payments, each person:                          $10,000
collision, actual cash value less deductible:           $500
comprehensive: actual cash value less deductible: $500

We also have an umbrella policy for $1,000,000.

A few years ago I was in an accident in which the other driver was completely at fault. She totaled both vehicles. So I'm apprehensive about dropping collision & comprehensive, at least until we have a big emergency fund. I would also consider raising the deductibles -- not sure why they're only $500.

We live outside of Milwaukee, WI, in a safe area, but my DH drives to a not-so-safe area for work. I'm a SAHM.

Thank you for sharing any thoughts/opinions!
Title: Re: Car Insurance
Post by: RWD on February 04, 2017, 10:42:21 AM
I run a $2000 deductible on our ~$17k value car and no collision/comprehensive on our ~$2k value car. I would consider removing collision/comprehensive coverage on any car worth less than $5k or so.