Author Topic: What type of insurance do people have on their ten year old paid off cars?  (Read 17920 times)

chucklesmcgee

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Thanks.

I would say it depends if you can afford to buy a new car if you don't carry full coverage, and cause an accident, that totals your vehicle.  If you can't afford a new vehicle, then carry full coverage.

And, strategy-wise, aim to get in the financial position of being able to afford a new vehicle should an emergency arise. Then you'll save a decent bit every month.

use2betrix

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I have full coverage on my 1999 Toyota Camry. My fiancé isn't the most experienced driver. The car only has 100k miles, and that year/make/model could easily last another 200k+ more miles, relatively trouble free. I pay about $1200/yr for full coverage.

Spork

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I have full coverage on my 1999 Toyota Camry. My fiancé isn't the most experienced driver. The car only has 100k miles, and that year/make/model could easily last another 200k+ more miles, relatively trouble free. I pay about $1200/yr for full coverage.

I have no earthly idea how much you'd save by falling back to liability...  but I would seriously consider it.  It's not about how long the car would last.  It's about how much it costs to buy a like model.  Even on the high end, I'd bet we're in the $2000-3000 replacement.  If you bank the difference, you are "self insured".

Exflyboy

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Yes my insurance person on the phone could hardly believe when I said I wanted liability (a lot of it) on a 2 year old car that we paid $12k for. She even reminded me that my finance institution might "require" comprehensive coverage.

"and who is your financer?".. Umm.. My check (cheque) book!


Joggernot

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2000 Honda Accord, scrap title because of hail damage, gets liability and uninsured motorist.

2005 Toyota Tacoma V6 ($8,500 value) gets liability, uninsured motorist, and comprehensive.

Both are fully paid for. 

chucklesmcgee

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I have full coverage on my 1999 Toyota Camry. My fiancé isn't the most experienced driver. The car only has 100k miles, and that year/make/model could easily last another 200k+ more miles, relatively trouble free. I pay about $1200/yr for full coverage.

I have no earthly idea how much you'd save by falling back to liability...  but I would seriously consider it.  It's not about how long the car would last.  It's about how much it costs to buy a like model.  Even on the high end, I'd bet we're in the $2000-3000 replacement.  If you bank the difference, you are "self insured".

Yeah jesus. I had a 99 camry...paid under $40 a month to insure it as a 22 year old male.

peter bedpan

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Liability with 100 Mio € coverage (max 15 Mio per person) and un(der)insured driver protection - costs 335€ per year. I have a Diesel so it's a little bit more expensive.
I don't understand how you can have a liability insurance with only 5 or 6 digits coverage. It's supposed to save me from bankruptcy and not just a few 1000 bucks.

CommonCents

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Liability with increased limits so if we hurt someone or something, we are more likely to fully covered:
- 100/300 for bodily injury caused by an under/uninsured auto
- 100K for property damage
- 300/500 for optional bodily injury to others

I want to be able to have enough to likely cover serious injuries and property damage to expensive cars that are driven around my neighborhood or homes. 

It's not just driving accidents.  A car hit our house yesterday because someone didn't park their car properly across the street.

seattlecyclone

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I have seen several people mention that they have dropped comprehensive/collision coverage but still carry un/underinsured motorist coverage. I am curious about the reasoning behind this decision.

As I understand it, collision insurance pays for the replacement value of your car when you have a collision that nobody else is liable for. So if you run your own car off the road or cause a multi-car collision yourself, the collision insurance will pay for you to replace your own car. Declining collision coverage means you're on your own to pay for the car in these cases.

As I understand it, un/underinsured motorist coverage will pay for the things an at-fault driver's insurance would have paid for if they had (enough) insurance. So if someone else hits your car and they are at fault but didn't carry (enough) insurance, un/underinsured motorist coverage will pay for your car and medical bills up to the limits of the plan.

Is my understanding of these insurances correct? If so, why would you self-insure for the value of your vehicle in cases where the collision is your own fault but not in cases where it's someone else's fault?

CommonCents

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I have seen several people mention that they have dropped comprehensive/collision coverage but still carry un/underinsured motorist coverage. I am curious about the reasoning behind this decision.
In my state (Calif) it's required by law and you can't take it off your policy.

This.
Also, my vague recollection is that to get certain upgraded numbers, I had to accept other upgraded numbers that came with them.  I don't really recall well, but we may have also been worried about medical bills (rather than the property damage to our car) for us/passengers.

Joggernot

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I have seen several people mention that they have dropped comprehensive/collision coverage but still carry un/underinsured motorist coverage. I am curious about the reasoning behind this decision.
In my state (Calif) it's required by law and you can't take it off your policy.
This.  Plus, in Texas there are a great number of uninsured motorists on the road.

seattlecyclone

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I have seen several people mention that they have dropped comprehensive/collision coverage but still carry un/underinsured motorist coverage. I am curious about the reasoning behind this decision.
In my state (Calif) it's required by law and you can't take it off your policy.
This.  Plus, in Texas there are a great number of uninsured motorists on the road.

Having it required by law is one thing, but choosing it because there are lots of uninsured motorists seems questionable. Surely the insurance company knows full well how likely it is that you'll be hit by an uninsured motorist and has priced the policy such that the collected premiums pay for all losses plus a reasonable profit margin, just like all other insurances. Therefore the standard wisdom about self-insuring being better unless you can't afford a loss would apply just as well here as with other insurances, right?

ender

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Liability only. I have a $1million personal injury/$100k property damage policy for ~$38/month.

We have nearly identical coverage, I think we have a bit more property coverage though..

Dropped comp/collision a while back since each of our vehicles is only worth about $3k and we had a $1k deductible. Saved us something like $30/month, so it's a pretty good chunk of money for only about $2k worth of coverage.

Rural

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I have seen several people mention that they have dropped comprehensive/collision coverage but still carry un/underinsured motorist coverage. I am curious about the reasoning behind this decision.
In my state (Calif) it's required by law and you can't take it off your policy.
This.  Plus, in Texas there are a great number of uninsured motorists on the road.

Having it required by law is one thing, but choosing it because there are lots of uninsured motorists seems questionable. Surely the insurance company knows full well how likely it is that you'll be hit by an uninsured motorist and has priced the policy such that the collected premiums pay for all losses plus a reasonable profit margin, just like all other insurances. Therefore the standard wisdom about self-insuring being better unless you can't afford a loss would apply just as well here as with other insurances, right?


But the chances of having a loss that's someone else's fault are much higher than the odds of having a loss that's no ones fault. I drive my vehicle on roads; odds are someone will hit me if anything happens. It's highly unlikely a tree will fall on it, even though I have a high risk of tree on car as far as such things go.


So, I'll replace out of pocket if I get very unlucky but not because other people are idiots.


Oh, and uninsured costs me about $20 a year instead of several hundred for comprehensive.

sol

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WE switch to liability only once the car is worth only $3,000.

We switched to liability when the value of the car dropped below our monthly checking account minimum balance.  Seems silly to pay a monthly fee to insure something we could just write a check for instead.

seattlecyclone

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But the chances of having a loss that's someone else's fault are much higher than the odds of having a loss that's no ones fault. I drive my vehicle on roads; odds are someone will hit me if anything happens. It's highly unlikely a tree will fall on it, even though I have a high risk of tree on car as far as such things go.

I agree that the tree situation is less likely than someone else hitting you. What about an accident that's your fault? If you drop collision insurance because you can afford to replace your car if you hit someone else (or if fault cannot be determined), then you can also afford to replace your car if you get hit by someone else. The cost is the same. The only difference is in the relative probabilities. However, insurance companies know better than you do what these probabilities are. They have collected the data, crunched the numbers, and priced that risk accordingly.

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So, I'll replace out of pocket if I get very unlucky but not because other people are idiots.

This is illogical, unless you have reason to believe that the insurance company has underestimated the probability that other people will be idiots in your vicinity.

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Oh, and uninsured costs me about $20 a year instead of several hundred for comprehensive.

That's because being hit by an uninsured motorist is much less likely than all of the things that would be covered by comprehensive coverage! If spending that $20 makes you sleep better at night, go for it, but it's not likely to have any better of an expected return than the insurance coverage you declined.

Rural

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But the chances of having a loss that's someone else's fault are much higher than the odds of having a loss that's no ones fault. I drive my vehicle on roads; odds are someone will hit me if anything happens. It's highly unlikely a tree will fall on it, even though I have a high risk of tree on car as far as such things go.

I agree that the tree situation is less likely than someone else hitting you. What about an accident that's your fault?



Ah, but an accident that's my fault is something I can control (mostly). I've managed to avoid one for quite a few decades now - never had an at-fault accident,


There's no such thing as an accident where fault can't be determined here, I don't think. Never heard of one, anyway.


As for the cost, it does stop some worrying and is cheap enough at that ~$20  price. It also means I don't have to pay out of pocket for any health care I need if I'm hit (high deductible medical plan), so the potential payoff is a lot bigger than my $1,200 car.

Lanthiriel

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I have a 2005 Ford Escape and a 2006 Toyota Avalon worth maybe a grand total of $14k. We spend $105/mo on comprehensive/collision because we're still in debt pay-off mode, and it would be tough to come up with the cash to replace them. I called around a lot of insurance places, and with this insurer, it's only costing me about $20/mo over liability for that peace of mind. We will probably drop down to liability when we have more cash in the bank.

Insurance is such a funny thing. Once I figured out what was actually getting covered, I dropped short term disability and vision insurance. I don't have life insurance because if either my husband or I died, one of our incomes is sufficient to run our household, and it would be easy to downsize to a smaller house, sell a car, etc. Most insurance feels like just another commodity we're being sold...

Paul der Krake

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Is there a good reason to carry uninsured/underinsured coverage for injuries now that everyone has to have health coverage? It's $5/month on my policy for 50/100, I wonder if I should cut it out.

In other news, at least judging from how pushy the rep was in their argumentation, they must be making tons of money from the roadside assistance add-ons.

seattlecyclone

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Is there a good reason to carry uninsured/underinsured coverage for injuries now that everyone has to have health coverage?

Rural alluded to this above, that if you have a high-deductible medical plan this could pay for your share of the medical bills if an uninsured motorist hits you. I'll repeat again that the insurance company makes money from this coverage. You should choose a medical deductible that you can afford. I see little reason to buy what amounts to additional insurance for certain ways you could end up in the hospital, but your mileage may vary.

seattlecyclone

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Is there a good reason to carry uninsured/underinsured coverage for injuries now that everyone has to have health coverage? It's $5/month on my policy for 50/100, I wonder if I should cut it out.

In other news, at least judging from how pushy the rep was in their argumentation, they must be making tons of money from the roadside assistance add-ons.
You'd probably have to compare it to what your medical coverage would cost to use if you were injured by an uninsured motorist. You may pay thousand in co-pays, deductible, other out of pocket stuff. If, like me, you never use your medical insurance for anything but annual stuff, having to pay thousands towards your medical care might make that $5/month insurance something you'd be OK paying for.

I tend to only use my medical insurance for basic stuff as well. Getting hit by an uninsured motorist is just one of a long list of unlikely things (cancer, heart attack, freak curling accident, etc.) that could cause me to owe thousands of dollars for unexpected medical care. If I can't afford the medical bills for the uninsured motorist situation, I probably can't afford the medical bills for the other things, and I should probably buy a medical policy with higher coverage levels. Buying a supplemental insurance policy for this one situation seems to be missing the forest for the trees.

dudde_devaru

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Anybody in Michigan running a 10+yr old car? I am getting totally frustrated shopping for this state insurance. Nothing is coming under $150 for my 17yr old car! Any help really appreciated .

$150 for a month or 6 months? Waive or eliminate any uninsured motorist or collision coverage, towing, health coverage, etc.
$150 for a month! The cheapest possible coverage without any bells and whistles! If you did not know, this MI state has the ridiculous No-fault coverage of $1M. Highest in this entire world I would say! And that cannot be customized.

You've got to be missing something. Michigan doesn't even crack the top 10. Maybe you killed someone and forgot about it?

Technically, it's unlimited personal injury protection that's required in Michigan. Because of this, injury claims are frequent and frivolous. The insurance company must also rate for the risk present in cities like Detroit or Flint. Since these types of things can bankrupt a smaller insurance provider, all Michigan insured vehicles must also pay into the MCCA (Michigan Catastrophic Claims Association). That's an additional $150 per year, per vehicle, on top of the high risk.

Dudde, keep shopping around (and do it every renewal as well), and if you're in a position to move anytime soon, do some quick auto quotes basing your vehicle at the potential new address.

Source: I'm a licensed insurance agent.

Also, this is my first post here! Hi everybody! I've learned so much from lurking; hopefully I can add value here and there.
Hello!

I just moved from SC to MI. My $34/month insurance is paid till next month. Have to move my plates/license/insurance to this F of a state now! If you don't want to reply here, feel free to PM me regarding any other service provider to look out for. It hurts and feels much pain to drive a 17yr old car with $150/month insurance!

I'd discuss your situation with your colleagues and neighbors, as they may have recommendations for smaller niche companies that provide the least expensive rates. Also, it may not hurt to find a local independent agent who can run your information through multiple companies. At the end of the day, you may just have to grin and bear it, as long as you live where you live and drive a vehicle. I won't recommend one company over another for this very reason...way too many factors go into pricing auto insurance, plus each company sets rates based on their future expected losses and expenses, using (usually) their own proprietary data.
Yup. That's the plan. Talking to some local B&M. Regarding the neighbors, 6 out of 8 are running out of state plates in my apartment, since they have a house/family there!
My insurance expires this weekend. I tired various vendors quotes from past week and out of the blue state farm sent me an updated quote for $450/6mo!!!! That's like 1/3rd of what they quoted 3weeks back lol. And then I checked AAA, it was around the same cost! This auto insurance is funny and PITA at the same time! My credit/driving history has not changed in past 3weeks. Only thing that happnd for the good was the insurance premium reduced

Lski'stash

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Anybody in Michigan running a 10+yr old car? I am getting totally frustrated shopping for this state insurance. Nothing is coming under $150 for my 17yr old car! Any help really appreciated .

It sounds like you may be confusing liability insurance (coverage on damages you may inflict on other people) with comprehensive/collision insurance (coverage on damage to your own car). If you have a 17 year old car, you shouldn't need any comprehensive/collision on it because replacement cost is so small. Liability rates are usually tied to your personal demographics -- gender, age, marital status, driving history, place of residence, etc. Maybe try moving? :)

This quote is probably accurate for full coverage (still very high for full coverage though) in Michigan. Michigan is the only state left which doesn't have a cap on damages covered by insurance, which is why the rates are so high. I know the state legislature was looking into capping it. Let's hope they do! Go liability coverage only. Should save you a ton. Another thought, look into any discounts you might get for your job. Example: Meemic covers people who work in the education field for a whole lot less, basically banking on the fact that they will be a good person. I know there are other government/nonprofit type discounts out there for insurance as well.

dudde_devaru

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Anybody in Michigan running a 10+yr old car? I am getting totally frustrated shopping for this state insurance. Nothing is coming under $150 for my 17yr old car! Any help really appreciated .

It sounds like you may be confusing liability insurance (coverage on damages you may inflict on other people) with comprehensive/collision insurance (coverage on damage to your own car). If you have a 17 year old car, you shouldn't need any comprehensive/collision on it because replacement cost is so small. Liability rates are usually tied to your personal demographics -- gender, age, marital status, driving history, place of residence, etc. Maybe try moving? :)

This quote is probably accurate for full coverage (still very high for full coverage though) in Michigan. Michigan is the only state left which doesn't have a cap on damages covered by insurance, which is why the rates are so high. I know the state legislature was looking into capping it. Let's hope they do! Go liability coverage only. Should save you a ton. Another thought, look into any discounts you might get for your job. Example: Meemic covers people who work in the education field for a whole lot less, basically banking on the fact that they will be a good person. I know there are other government/nonprofit type discounts out there for insurance as well.
I took the state minimum liability only. No bells and whistles more than state minimum. They provided 5mile towing free for 10times I guess. So canceled my AAA as well which I haven't used from past 7months!
I am a 5yr old alien in this country. Not remotely connected to any govt workers/org. And yeah checked all possible discount and also with 7 vendors. This was the least of all!

yourusernamehere

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Is there a good reason to carry uninsured/underinsured coverage for injuries now that everyone has to have health coverage? It's $5/month on my policy for 50/100, I wonder if I should cut it out.

In other news, at least judging from how pushy the rep was in their argumentation, they must be making tons of money from the roadside assistance add-ons.
You'd probably have to compare it to what your medical coverage would cost to use if you were injured by an uninsured motorist. You may pay thousand in co-pays, deductible, other out of pocket stuff. If, like me, you never use your medical insurance for anything but annual stuff, having to pay thousands towards your medical care might make that $5/month insurance something you'd be OK paying for.

In the US, and depending on your policy and state where the accident happened, Uninsured Motorist BODILY INJURY coverage is not for bills usually - it's for a related claim for your pain and suffering. Your health insurance will pay the bills unless it specifically excludes auto (including closing your finger in the car door and the like,) and many primary health policies do. Then it comes to your auto policy: medical payments coverage or in some states personal injury protection, which pays for your own bills no matter who is at fault, as well as for the people in your car. And sometimes if you're on a motorcycle or hit as a pedestrian, sometimes not, holy variations, Batman!
Then depending on severity, UMBI may be claimed against for additional damages/pain and suffering. (5+ years handling auto injury claims for an insurer in the northeast US.)

Lski'stash

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Yeah, judging by how long you've been in the country then, that's right unfortunately:( the first five years of driving are the most expensive, and you are driving in the most expensive state for coverage. It's probably cheaper just for you to UBER everywhere depending on where you are at.

dudde_devaru

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Yeah, judging by how long you've been in the country then, that's right unfortunately:( the first five years of driving are the most expensive, and you are driving in the most expensive state for coverage. It's probably cheaper just for you to UBER everywhere depending on where you are at.
18mile 2way commute * 5 days. This motor city never wanted public transport/bike paths/better roads/better walking paths. Absolutely no other possible form of commute! I love public transport. But taking bus for commute = 2hrs of bus and 45mins of walk for one way

johnny847

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My parents have never had anything other than the minimum required liability insurance. They could afford to replace their cars tomorrow if they needed to, so there's no reason to buy insurance that covers anything else when it is a statistically losing proposition.

Goldielocks

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Ugh.  Liability minimum here is $500k. BUT. Any volunteer work I do with car demands $2 million liability. It is the new defacto minimum, and I think I only the govt insurance provider wins.

Who sues a volunteer for more than $1 million liability when basic healthcare is covered?

Eg. Driving for school trips, honestly, using car for meals on wheels....