Car Insurance Time

[TromboneAl]

My understanding of my insurance is that in order to get an umbrella policy, you need to have a certain minimum liablity coverage on the auto, and that the cheapest alternative is to get that minimum on the auto, and have the rest covered by the umbrella.

 

[Nords]

My understanding of my insurance is that in order to get an umbrella policy, you need to have a certain minimum liablity coverage on the auto, and that the cheapest alternative is to get that minimum on the auto, and have the rest covered by the umbrella.

Two problems with that:
- It's not necessarily true for all companies, especially if they use quantitative methods of setting your rates like age, ZIP code, or driving record.
- USAA & AFI both have specific requirements on how much auto coverage you must have to be eligible to pay them more for liability insurance. IOW you don't get to choose the minimums. I don't know if other companies are like this but I remember being pretty frustrated at the differences among them when I was trying to do price comparisons.

USAA also complicates the issue by using vocabulary like "stacked" and "unstacked". At this point you have to disable the logic center of your cerebral cortex and just build a chart to cover all the inputs & outputs. If you have two or more cars the difference can be costly. I don't know whether we have USAA or the state of Hawaii to thank for this system.

 

[REWahoo]

USAA also complicates the issue by using vocabulary like "stacked" and "unstacked". At this point you have to disable the logic center of your cerebral cortex and just build a chart to cover all the inputs & outputs. If you have two or more cars the difference can be costly. I don't know whether we have USAA or the state of Hawaii to thank for this system.

I'm guessing it is a state requirement. I have USAA auto/umbrella policies (TX) and there is no mention of stacked/unstacked. I am especially happy about this as the cerebral cortex connection to my logic center is getting frayed and brittle due to advancing age. I don't dare disconnect it as I may never get the plug back in.

But I did have to up my auto liability amounts before they would let me have an umbrella policy.

REW

 

[TromboneAl]

Well, I dropped the collision on both cars, and kept comprehensive on the Echo (which we will drive more). Thanks for all the advice.

 

[SteveL]

All companies have minimum underlying limits you must have to get and retain an umbrella policy. Some companies might req 250/500 and others 100/300. The umbrella is excess over this limit. And the price will differ; lower underlying cover will mean higher Umbrella prices. Since all the primary companies like USAA are reinsuring their umbrellas with other companies, they sign contracts with the reinsurer about what these limits must be. USAA might retain only 20% of the excess over their underlying req. The rest is laid off. With umbrellas, the big question has to do with whether or not the umbrella covers Uninsured/Underinsured Motorist coverage or not. This is where the stacked/unstacked issue arises. My personal umbrella isn't excess to my UM/UIM, therefore my Umbrella is cheaper, and easier to get. Some states set the rules about whether or not umbrellas must cover UM. When UM coverages are stacked, if you have two cars, then your UM is doubled, and with three cars trippled. Likewise the umbrella. States where legal decisions have led to stacking are very tough on insurance companies, and produce much higher rates.
This is more that most want to know....

 

[bosco]

Thanks for the info, guys.

They haven't resisted taking her off the policy. When she comes home for a month for Christmas, will we have to put her back on?? Next summer for three months??

What's the rationale for keeping the comprehensive? It costs a lot less, but the risk for that kind of claim is a lot less also.

Can't speak for your company but for mine (GEICO) the answer is yes. They basically say if you have a licensed kid within X miles of where you live, they need to be on the policy. Not sure what happens if you don't tell them. Imagine it's bad if they do drive and get in an accident.

I park my truck on my lot during the summer construction season while I'm out of town. It is not driven. I keep comprehensive on it, afraid of theft, or a tree dropping on it. When the season is over, I put liability back on it.

 

[TromboneAl]

But I wonder how the time period fits in. If she's home for a week (like spring break), a month (like Christmas), or three months (summer)? I guess I'll ask the agent around Christmas time.

 

[JPatrick]

Can't speak for your company but for mine (GEICO) the answer is yes.  They basically say if you have a licensed kid within X miles of where you live, they need to be on the policy.  Not sure what happens if you don't tell them.  Imagine it's bad if they do drive and get in an accident.  

My company (USAA) is the same as far as keeping kid on policy when away.  Big discount if over 100 miles away.  Regarding having an accident if not on the policy- -I did ask that. They said they would probably cover the accident, but remove me from the ranks of the insured shortly afterward. Not good.

 

[azanon]

Are there any states that allow you to self-insure on liability with just one or two cars? Here you have to have at least 11 vehicles.

As my post would have suggested, yes. In Arkansas you can use liability on just one vehicle provided you own it. (of course if the bank still owns it, they're going to want insurance on it).