Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Question About Auto Insurance Coverages
Old 10-25-2010, 03:48 PM   #1
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
haha's Avatar
 
Join Date: Apr 2003
Location: Hooverville
Posts: 22,387
Question About Auto Insurance Coverages

A while back a thread touched on getting rid of expensive but uneeded auto coverage. I looked at my coverages, but I am basically clueless about what they mean. Here are my coverages and premiums, on an annual basis.

I figure everything other that the liability is potentially on the chopping block. What should go, what should stay? What are the considerations that bear on this?

PROPERTY DAMAGE and bodily injury liability -Each Occ. $362.20
PIP $10,000 $64.10
Underinsured Motorists
Bodily Injury $500,000 (each Person $500,000) $137.90
Property Damage $50,000 (Each Accident) $21.70
Comp Act.Cash Value, (less $1000 ded) $51.00
Collision Actual Cash Value, (less $1000 ded) $271.70

Ha
__________________

__________________
"As a general rule, the more dangerous or inappropriate a conversation, the more interesting it is."-Scott Adams
haha is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 10-25-2010, 04:23 PM   #2
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: May 2005
Posts: 13,296
I would get rid of PIP... not a lot of money and it costs are high...


What is the value of the vehicle? Is this a 6mth or 12mth policy?

Do you have another form of transportation if your car is totaled? I do, but if I did not I would pay for rental coverage as it is only a few $$$s...

What about towing? We pay for that and it has helped when my wife got stuck in a state park... towed her about 25 miles and we did not have to pay... cheap coverage...
__________________

__________________
Texas Proud is online now   Reply With Quote
Old 10-25-2010, 04:35 PM   #3
Thinks s/he gets paid by the post
 
Join Date: Aug 2004
Location: Laurel, MD
Posts: 2,954
If your cars are older and you don't owe money on them, I would get rid of comp and collision.
__________________
...with no reasonable expectation for ER, I'm just here auditing the AP class.Retired 8/1/15.
jazz4cash is online now   Reply With Quote
Old 10-25-2010, 04:37 PM   #4
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
haha's Avatar
 
Join Date: Apr 2003
Location: Hooverville
Posts: 22,387
Quote:
Originally Posted by Texas Proud View Post
I would get rid of PIP... not a lot of money and it costs are high...


What is the value of the vehicle? Is this a 6mth or 12mth policy?

Do you have another form of transportation if your car is totaled? I do, but if I did not I would pay for rental coverage as it is only a few $$$s...

What about towing? We pay for that and it has helped when my wife got stuck in a state park... towed her about 25 miles and we did not have to pay... cheap coverage...

Trade in val $11,000
Sugg retail $14,400

Don't need another car, at least not quickly.
Have towing

12 month policy.

Ha
__________________
"As a general rule, the more dangerous or inappropriate a conversation, the more interesting it is."-Scott Adams
haha is offline   Reply With Quote
Old 10-25-2010, 04:46 PM   #5
Thinks s/he gets paid by the post
MasterBlaster's Avatar
 
Join Date: Jun 2005
Posts: 4,359
Quote:
Originally Posted by jazz4cash View Post
If your cars are older and you don't owe money on them, I would get rid of comp and collision.
Just so you know what you are getting yourself into...

When you drop comp and collision you are on your own to collect from bad-faith insurers who are all too common as well as all of the people without insurance.
__________________
MasterBlaster is offline   Reply With Quote
Old 10-25-2010, 05:00 PM   #6
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: May 2005
Posts: 13,296
Quote:
Originally Posted by MasterBlaster View Post
Just so you know what you are getting yourself into...

When you drop comp and collision you are on your own to collect from bad-faith insurers who are all too common as well as all of the people without insurance.

I also do not think you can get uninsured/undersinsured without it either... maybe someone knows for sure...


But, you insure over $13,000 of cost to you for a bit over $300 per year... not bad IMO...


And if you can not get uninsured and someone hits you... to bad... you lose.. my sister got hit by someone who did not have insurance... the car was insured, but she was specifically exempt from the policy but drove anyhow... do you want to take that chance?
__________________
Texas Proud is online now   Reply With Quote
Old 10-25-2010, 05:08 PM   #7
Thinks s/he gets paid by the post
MasterBlaster's Avatar
 
Join Date: Jun 2005
Posts: 4,359
We had a very bad experience with my wife's car.

The other party was absolutely at fault and sited at the scene. However since we didn't have comp and collision the other party's insurance company felt like this was their license to jack us around and not pay anything.

The whole thing took a year and untold agravation to resolve
__________________
MasterBlaster is offline   Reply With Quote
Old 10-25-2010, 05:31 PM   #8
Thinks s/he gets paid by the post
Gotadimple's Avatar
 
Join Date: Feb 2007
Posts: 1,765
Quote:
Originally Posted by haha View Post
A while back a thread touched on getting rid of expensive but uneeded auto coverage. I looked at my coverages, but I am basically clueless about what they mean. Here are my coverages and premiums, on an annual basis.

I figure everything other that the liability is potentially on the chopping block. What should go, what should stay? What are the considerations that bear on this?

PROPERTY DAMAGE and bodily injury liability -Each Occ. $362.20
PIP $10,000 $64.10
Underinsured Motorists
Bodily Injury $500,000 (each Person $500,000) $137.90
Property Damage $50,000 (Each Accident) $21.70
Comp Act.Cash Value, (less $1000 ded) $51.00
Collision Actual Cash Value, (less $1000 ded) $271.70
Ha
Ha,
In another lifetime, it wasn't health insurance but property and casualty insurance.

Liability is required in the state of WA. Same for Uninsured motorist. So at a minimum, you need those two coverages if you really want to cut expenses.

PIP will pay for medical coverage if you are injured but it is a limited amount of medical (primary to medicare tho'). Where else can you get up to $10,000 in medical coverage (hospital or primary care) for no deductible and no co-pay for $64 a year?

I'd keep the physical damage coverage (Comp and Collision) as another poster noted your car's current value is worth continuing to insure. You should consider dropping Comp/Collision when the value of the car gets so low that you'd consider replacing it if you got in an accident. For now $1000 comp deductible covers about half the cost of a new windshield, so it's still worth it.

-- Rita
__________________
Only got A dimple, would have preferred 2!
Gotadimple is offline   Reply With Quote
Old 10-25-2010, 05:36 PM   #9
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
haha's Avatar
 
Join Date: Apr 2003
Location: Hooverville
Posts: 22,387
Clever analysis Rita, thank you.

Ha
__________________
"As a general rule, the more dangerous or inappropriate a conversation, the more interesting it is."-Scott Adams
haha is offline   Reply With Quote
Old 10-25-2010, 05:41 PM   #10
Thinks s/he gets paid by the post
Gotadimple's Avatar
 
Join Date: Feb 2007
Posts: 1,765
Quote:
Originally Posted by haha View Post
Clever analysis Rita, thank you.

Ha
I duz my best
__________________
Only got A dimple, would have preferred 2!
Gotadimple is offline   Reply With Quote
Old 10-25-2010, 05:48 PM   #11
Moderator Emeritus
Martha's Avatar
 
Join Date: Feb 2004
Location: minnesota
Posts: 13,212
I would consider getting rid of the PIP as you have health insurance. It is really just insuring against the deductible. It only covers your own medical expenses up to the dollar amount mentioned, regardless of fault.
__________________
.


No more lawyer stuff, no more political stuff, so no more CYA

Martha is offline   Reply With Quote
Old 10-25-2010, 06:06 PM   #12
Thinks s/he gets paid by the post
 
Join Date: Aug 2004
Location: Laurel, MD
Posts: 2,954
Quote:
Originally Posted by MasterBlaster View Post
Just so you know what you are getting yourself into...

When you drop comp and collision you are on your own to collect from bad-faith insurers who are all too common as well as all of the people without insurance.
I guess I've been lucky. Only one incident and the claim was paid promptly. Other driver insisted on filing a claim.

I don't have a lot of confidence that my insurer would aggresively pursue another insurer anyway.

I've seen bad faith insurance situations and having comp and collision did not seem to help much....bad faith is bad faith

My cars aren't worth much....and I have five of them!
__________________
...with no reasonable expectation for ER, I'm just here auditing the AP class.Retired 8/1/15.
jazz4cash is online now   Reply With Quote
Old 10-25-2010, 06:10 PM   #13
Thinks s/he gets paid by the post
 
Join Date: Aug 2004
Location: Laurel, MD
Posts: 2,954
Quote:
Originally Posted by Texas Proud View Post
I also do not think you can get uninsured/undersinsured without it either... maybe someone knows for sure...


But, you insure over $13,000 of cost to you for a bit over $300 per year... not bad IMO...


And if you can not get uninsured and someone hits you... to bad... you lose.. my sister got hit by someone who did not have insurance... the car was insured, but she was specifically exempt from the policy but drove anyhow... do you want to take that chance?
I do have un/underinsured coverage (without comp and collision) and PIP. Requirements vary from state to state, I guess.

I also consider my employer's personal accident optional coverages in determining my overall needs.

If any of my cars were worth 13k, I'd probably make another decision. Insurance is expensive where i live and I have several young drivers.
__________________
...with no reasonable expectation for ER, I'm just here auditing the AP class.Retired 8/1/15.
jazz4cash is online now   Reply With Quote
Old 10-26-2010, 12:46 AM   #14
Thinks s/he gets paid by the post
 
Join Date: Nov 2009
Posts: 3,874
I worked for an insurance company trade group for 23 years until 2 years ago. I specialized in personal auto insurance.

What state do you live in? Most states which allow PIP to be sold have it as a mandatory coverage, but a few don't require it. UM/UIM is not usually a mandatory coverage(s) although most people buy it anyway. Sometimes, those coverages are offered on a combined basis but some states allow them to be sold separately.

With UM/UIM, you can buy limits lower than what you have bought for BI Liability. You could easily reduce your UM/UIM limits to $200k or $250k and still provide yourself with plenty of coverage. Furthermore, UIM (not UM) varies by state in terms of how it applies in case you are hurt by an underinsured driver.

Your car seems to be worth too much to consider getting rid of Comp or Collision yet. You already have a pretty high deductible so I would not suggest increasing it further.

You could also lower your BI Liability limit which has to be at least $500k because your UM/UIM limit is $500k. If you felt comfortable with $250k or $300k which is still a lot of coverage then you would save some $$.
__________________

__________________
Retired in late 2008 at age 45. Cashed in company stock, bought a lot of shares in a big bond fund and am living nicely off its dividends. IRA, SS, and a pension await me at age 60 and later. No kids, no debts.

"I want my money working for me instead of me working for my money!"
scrabbler1 is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Auto insurance policy modhatter Other topics 3 04-04-2007 09:09 AM
auto insurance warning mathjak107 Other topics 19 12-25-2006 03:26 AM
Auto Insurance snowbird Life after FIRE 6 09-04-2005 11:24 AM
Auto and home insurance... LRAO FIRE and Money 5 01-28-2005 05:58 PM

 

 
All times are GMT -6. The time now is 04:14 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.