Author Topic: car insurance  (Read 1013 times)

thisisjeopardy

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car insurance
« on: June 03, 2017, 01:09:04 PM »
We bought a new 2017 Prius V in January because we have a baby on the way. These things are reliable and safe and I plan on giving it to my son in high school. But for now I think I over shot on insurance. We live in an urban city and have only filled the tank once (and its at 3/4th full at the moment) - around 400+ miles on it.

I'm on the insurance but I dont't have a license. I believe when I get my license this will lower the rate, correct?

Our first 6 month premium was $504.03. We both have excellent FICO (760+) and no tickets or violations on record.

Our policy is 300/300/100 and I think this is way too much. The thinking was, if something bad happened we'd be protected. However I spoke with someone in the industry and they said in 20 years they only saw someone get sued for 200k like once.

Illinois state minimum coverage is 25/50/20. We also only use the car like once a weekend  (may change when the baby comes) - is it worth inquiring about a mileage / little use discount?

We have plenty of savings and investments if that makes a difference.

What coverage are you guys getting?




katsiki

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Re: car insurance
« Reply #1 on: June 03, 2017, 02:34:06 PM »
I would keep the coverage but check into limited use options.  Many companies provide a tracking device.  At your limited usage, you should get some discounts.

Stoic on FIRE

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Re: car insurance
« Reply #2 on: June 03, 2017, 06:54:15 PM »
Regarding the car insurance coverage, if you're looking into umbrella insurance or general liability insurance you may be required to carry a higher auto policy like yours. I went through getting my insurance updated last month and I was required to have a 300/300/100 coverage or higher depending on the company supplying the umbrella insurance quote.

That being said, I did have the minimum needed for state coverage for years, but I am only one anecdote. The difference in premium was only about $50 a year when I upped my coverage because I carry a $1000 deductible (I also switched auto insurance companies as well). That's probably due to your contact in the industry's experience of high claims being a rare event.

Also, the amount your driving perhaps there is no need for a vehicle and you can get by with a rental? Also, who knows, perhaps in 15 or 16 years when your child starts driving there will be an insurance surcharge for manually driven vehicles due to autonomous tech.