Post by: Talltodd on June 13, 2015, 11:25:10 AM
Post by: WFUDEAC on June 13, 2015, 11:42:31 AM
I have a $1,000 deductible with collision and comprehensive coverage due to the aforementioned deer risk. Have 100K/300K for injury and limited tort. I pay $50 per month for insurance ($600 annually). Last time I checked I would save $200 a year if I dropped collision and comprehensive which just isn't worth it in my opinion.
Post by: La Bibliotecaria Feroz on June 13, 2015, 12:00:07 PM
In fact, we have liability only on our newer car, which is only 7 years old. I couldn't see paying hundreds of dollars a year to insurance against the possibility that we might lose $7500 (the combined value of our cars). That doesn't make mathematical sense to me.
In fact, unless we smashed into each other, the most we could lose at one time is one car... and we have two... and could probably get by with just one.
Post by: RangerOne on June 13, 2015, 12:10:44 PM
Post by: TN_Steve on June 13, 2015, 12:29:11 PM
Post by: NoraLenderbee on June 13, 2015, 03:18:43 PM
Post by: kpd905 on June 13, 2015, 03:20:12 PM
Post by: slugline on June 13, 2015, 03:45:19 PM
(I consider liability insurance as covering me, not the car.)
Post by: Hunny156 on June 15, 2015, 09:51:59 AM
Post by: AJ on June 15, 2015, 09:58:11 AM
Post by: CheapskateWife on June 15, 2015, 11:00:44 AM
Post by: YK-Phil on June 15, 2015, 11:13:23 AM
Post by: 2Birds1Stone on June 15, 2015, 11:23:35 AM
Post by: celticmyst08 on June 15, 2015, 11:48:06 AM
Post by: choppingwood on June 15, 2015, 12:03:21 PM
Now I have a 2006 Hyundai Santa Fe with 165000 km, worth about $7000, in full repair, well worth the collision insurance -- and very cheap. It also covers collisions on rental cars, as long as the original car isn't in use. (some limits on where the rental car is) Good of you don't have this through your cc.
Post by: neo von retorch on June 15, 2015, 01:47:50 PM
But the insurance company has bet on me not wrecking - based on my driving history and profile, they don't charge me much for collision/comprehensive. So their calculations probably predict I won't get in accident.
Post by: Exflyboy on June 15, 2015, 01:58:02 PM
Then again we have a NW of roughly $2M.. (if we wreck the car we buy another one for cash) But.. you can bet we carry $500k of liability because we WILL get sued if we hurt somebody.
We really should take out $1M Umbrella policy.
Post by: Jeremy E. on June 15, 2015, 02:22:04 PM
Post by: seattlecyclone on June 15, 2015, 02:32:57 PM
Post by: Sid Hoffman on June 15, 2015, 03:24:03 PM
Then again we have a NW of roughly $2M.. (if we wreck the car we buy another one for cash) But.. you can bet we carry $500k of liability because we WILL get sued if we hurt somebody.
Yeah this is exactly why you shouldn't do state minimum liability insurance. I have a far lower NW and lower liability limit, but still close at $100k/300k liability. Like you said, in this day and age people get sued for everything. I looked up the stats the other day and in the USA, 1 out of 138 Americans are injured in auto wrecks every year. Add that up over, say, 60 years that you might be driving cars and that's a lot of opportunity that you might get in an at-fault injury accident.
My insurance is only $32/month for that $300k coverage and to me that's totally worth it. I'm basically getting up to 781x leverage on my money ($384 protects $300,000) by having insurance. At this point in my life, I'm likely to be driving another, say, 45 years. $384 * 45 = $17,280. The odds that somewhere in my life, I'll be at fault in an accident that costs more than $17,280 are low, but still very real odds. Given that my policy gives me up to $300,000 worth of protection for that $17,280 over 45 years, I think its a fair price to pay.
Post by: GetItRight on June 15, 2015, 04:38:24 PM
Post by: Spork on June 15, 2015, 04:52:59 PM
Post by: TheThirstyStag on June 15, 2015, 06:52:35 PM
Post by: Tjat on June 15, 2015, 07:40:35 PM
Post by: Kiwi Mustache on June 15, 2015, 09:53:18 PM
Covers me for crashing into someone else's car.
Also free callouts/towing/battery jump if I break down. For this extra breakdown cover, it costs me around $30 extra per year and in the last 9 years of driving my old car required it twice and it would have cost $300 if I didn't have the cover, plus takes the stress out of happening to break down.
Post by: Fuzz on June 15, 2015, 10:16:13 PM
Chatting about this with a plaintiff's lawyer friend she made the good point that if I was at fault in an accident and disabled another person, I would want them to have $500K in compensation.
For me $300K in liability coverage is around $470/year. Seems fair and appropriate.
Post by: seattlecyclone on June 16, 2015, 12:41:11 AM
If I had $500K in the bank, I'd strongly consider $500K in liability coverage.
For the record, there is no basis for a 1:1 correspondence between your assets and your insurance limits. If you cause someone to be disabled, you can be found liable for $500k (or whatever the amount) regardless of how much insurance or assets you have. If you have no money, any judgement over your insurance amount will bankrupt you, so you might as well not pay for much insurance in the first place. But if you have $200k in the bank and were told to get $200k of insurance to "protect your assets," a $500k settlement will still bankrupt you. Similarly, if you have $500k in the bank and $500k of insurance, you could still be bankrupted if the legal system decides you owe $1 million to the people you hit.
Once you have any amount of assets that you would rather not lose if you were at fault in a car crash, the correct amount of insurance to buy has almost nothing to do with the amount of assets you have. Instead it is whatever the largest likely verdict against you would be. I really don't know what that number is though. Anyone have some data?
Post by: TheThirstyStag on June 16, 2015, 07:16:09 AM
Post by: I'm a red panda on June 16, 2015, 08:22:33 AM
Post by: clarkm04 on June 16, 2015, 08:42:12 AM
http://www.consumerreports.org/cro/magazine-archive/2010/october/money/car-insurance/auto-insurance-coverage/index.htm
Post by: seattlecyclone on June 16, 2015, 09:01:37 AM
We have liability and use the Consumer Reports recommendations.
http://www.consumerreports.org/cro/magazine-archive/2010/october/money/car-insurance/auto-insurance-coverage/index.htm
I can't really get behind the Consumer Reports recommendation to buy uninsured motorist coverage equal to your own liability coverage. This coverage will pay for your car, medical bills, or whatever else you might have won in court if an uninsured motorist hits you and they can't afford to pay. Your car should be cheap enough that you can write that off, your medical insurance should already cover the bulk of your medical bills, and if it's a really bad crash you should probably already have disability and/or life insurance to cover those risks. The uninsured motorist coverage just seems to be a way for your auto insurance company to bill you for something that, in the event of a loss, would mostly go right back to your other insurance companies to repay their costs.
Post by: dudde_devaru on June 16, 2015, 09:09:44 AM
I feel like ripping myself apart every time I think of it.
Any Michigunners around can suggest me any alternate approach? My policy expires this July and I still run on my SC plates till July when I HAVE to move my licence/plates/insurance to MI :(
Post by: GetItRight on June 16, 2015, 08:51:16 PM
For those that only are covered up to the liability state minimum....why is that? I understand dropping coll/comp and the whole concept of self-insurance vs a minuscule chance of being at-fault for an accident, but one slip up from a liability perspective could cause you to lose everything. Wouldn't a few hundred bucks a year be worth that peace of mind? I would think the risk/return trade off makes sense there as the risk would certainly derail FI much more so than the cost.
Two reasons. One I already stated, two vehicle and I can only drive one at a time so I see no reason why I should be insuring a vehicle for liability when it is an inanimate object that can cause no harm or good. I will not pay twice as much. Automotive is my hobby which I will continue to enjoy into FIRE, so to any naysayers get off your high horse.
The other is I am extremely careful when driving. I accept the risk and think about it a lot, especially any time someone else id driving like a prick and may cause an accident. I'm amazed at how other are so unaware of everything around them while driving and when questioned express a disregard for safety, prudence, or accident avoidance quoting insurance as one reason not to worry. I don't have a membership card to that club.
The third reason is I do not have any appreciable stash and my net worth is negative (though nearing zero) so I'm not an attractive target for a frivolous lawsuit, given that I find it highly unlikely that I would ever do significant, if any, harm to any person or property while driving.
For what it's worth I do have my motorcycle insured under an agreed value policy. I spent a lot of time and money restoring it and given the relatively low cost of motorcycle insurance I feel it's worth the extra $100/yr (on top of about $75/yr for liability with greater coverage than my car policy) to know if anything happens I can build another one if I'm fortunate enough to be able to still be able to get parts to build a 50 year old bike and be alive after the wreck.
Also, as a reaction to this thread I quoted car insurance iwth a couple companies and found one that will save me about $250/yr. This is a BS game you have to play with car insurance switching every 6-12 months to save money. They all give a lower price for new customers but if you call saying you got a quote $100 lower they won't budge on price but tell you to call them back when you're up for renewal and they'll beat the competitor.
Post by: dudde_devaru on June 25, 2015, 09:29:33 PM
Post by: chucklesmcgee on June 25, 2015, 09:41:49 PM
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.
Post by: chucklesmcgee on June 25, 2015, 09:44:45 PM
Post by: dudde_devaru on June 25, 2015, 09:46:13 PM
$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.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.
Post by: chucklesmcgee on June 25, 2015, 10:02:34 PM
$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.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.
You've got to be missing something. Michigan doesn't even crack the top 10. Maybe you killed someone and forgot about it?
Post by: dudde_devaru on June 25, 2015, 10:17:16 PM
LoL no! I have just 5yrs of US driving experience, 0 tickets, moved 3 states in past two years and uses 3 different insurance companies in past two years, have made 0 claims, have credit history of 754. Despite all these, getting the worst quote ever! Its not just with one provider. All top 5 advertised providers are giving ridiculous rates!$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.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.
You've got to be missing something. Michigan doesn't even crack the top 10. Maybe you killed someone and forgot about it?
http://www.nerdwallet.com/blog/insurance/2015/06/17/michigan-battling-high-car-insurance-quotes/
Post by: mustachepungoeshere on June 25, 2015, 10:22:18 PM
I think we are over-insured right across the board; it's probably worth its own post for input on where we can make cuts.
Post by: patchyfacialhair on June 25, 2015, 10:25:43 PM
$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.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.
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.
Post by: dudde_devaru on June 25, 2015, 10:31:22 PM
Hello!$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.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.
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.
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!
Post by: patchyfacialhair on June 25, 2015, 10:50:37 PM
Hello!$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.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.
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.
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.
Post by: dudde_devaru on June 26, 2015, 06:03:19 AM
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!Hello!$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.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.
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.
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.
Post by: catccc on June 26, 2015, 08:34:37 AM
Post by: Rural on June 26, 2015, 12:41:16 PM
Post by: tvan on June 26, 2015, 12:46:56 PM
Liability plus uninsured motorist (because so many here are) on all our vehicles.
ha! Same for me.
Post by: TheInsuranceMan on June 26, 2015, 12:52:12 PM
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.
Post by: slugline on June 26, 2015, 01:39:03 PM
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? :)
Post by: Cassie on June 26, 2015, 02:30:25 PM
Post by: chucklesmcgee on June 26, 2015, 10:23:45 PM
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.
Post by: use2betrix on June 27, 2015, 01:04:33 PM
Post by: Spork on June 27, 2015, 03:58:47 PM
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".
Post by: Exflyboy on June 27, 2015, 04:03:27 PM
"and who is your financer?".. Umm.. My check (cheque) book!
Post by: Joggernot on June 27, 2015, 05:48:39 PM
2005 Toyota Tacoma V6 ($8,500 value) gets liability, uninsured motorist, and comprehensive.
Both are fully paid for.
Post by: chucklesmcgee on June 28, 2015, 12:25:11 AM
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.
Post by: peter bedpan on June 29, 2015, 02:16:00 PM
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.
Post by: CommonCents on June 29, 2015, 02:27:52 PM
- 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.
Post by: seattlecyclone on June 29, 2015, 02:38:30 PM
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?
Post by: CommonCents on June 29, 2015, 02:48:47 PM
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.
Post by: Joggernot on June 29, 2015, 03:30:06 PM
This. Plus, in Texas there are a great number of uninsured motorists on the road.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.
Post by: seattlecyclone on June 29, 2015, 05:01:51 PM
This. Plus, in Texas there are a great number of uninsured motorists on the road.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.
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?
Post by: ender on June 29, 2015, 06:09:51 PM
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.
Post by: Rural on June 29, 2015, 07:12:24 PM
This. Plus, in Texas there are a great number of uninsured motorists on the road.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.
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.
Post by: sol on June 29, 2015, 07:37:19 PM
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.
Post by: seattlecyclone on June 29, 2015, 10:02:19 PM
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.
Quote
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.
Quote
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.
Post by: Rural on June 30, 2015, 04:56:15 PM
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.
Post by: Lanthiriel on June 30, 2015, 05:47:57 PM
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...
Post by: Paul der Krake on June 30, 2015, 05:57:07 PM
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.
Post by: seattlecyclone on June 30, 2015, 06:16:41 PM
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.
Post by: seattlecyclone on July 01, 2015, 04:16:24 PM
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.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 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.
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.
Post by: dudde_devaru on July 09, 2015, 07:18:11 PM
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 reducedYup. 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!Hello!$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.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.
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.
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.
Post by: Lski'stash on July 09, 2015, 07:28:27 PM
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.
Post by: dudde_devaru on July 09, 2015, 07:31:37 PM
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!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 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!
Post by: yourusernamehere on July 09, 2015, 07:41:41 PM
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.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 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.
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.)
Post by: Lski'stash on July 09, 2015, 07:47:37 PM
Post by: dudde_devaru on July 09, 2015, 07:55:47 PM
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
Post by: johnny847 on July 09, 2015, 07:56:43 PM
Post by: Goldielocks on July 09, 2015, 08:11:20 PM
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....