Let's all get real about the #'s

[cute fuzzy bunny]

I increased our deductibles on our cars to 2500 and increased the liability to 250/500 a couple of years ago. Cheaper, I fix my own boo-boos (which I hardly ever get), and i'm well covered in the event of a disaster.

One of my former co-workers 'wandered' into another lane a bit and caused the car in the lane next to him to make an evasive maneuver...off the road. Of the 3 people in that car, two were killed and one injured. His insurance paid out $1.5M for that little twitch of the wheel.

I wouldnt lower liability unless I just didnt have the money to pay out in a lawsuit...

 

[GTM]

.

I wouldnt lower liability unless I just didnt have the money to pay out in a lawsuit...

Agree although I would keep the liability at the minimum permitted by the insurance company to purchase an umbrella policy.

$2 million in coverage over your current limits on all your assets cost about $300 a year.
$1 million less than $200

 

[uncledrz]

GTM
Clearly the way to go. Umbrella covers liability in area other than auto as well (who slipped on my front step?).

With base coverage on home/auto at $300,000 a million dollar policy is around a hundred dollars. Well worth, IMHO, the "don't worry about it" factor.

Uncledrz

 

[BUM]

I hate paying any kind of insurance premium. So far over m lifetime its been a net loser. I did have 2 expenses however that were covered. Lawyer and repair fees were near $100K. glad I had that coverage.

I'm finding that alot of my expenses relate to my nearly extinct business. Expenses for utilities, gas, insurance, and a ton of other things are coming way down. In fact today, with great pleasure, I'll be terminating 2 phone lines!

 

[Mr._johngalt]

Hello BUM. As I have posted before, I actually had fun
dismantling my business. Shut it down in 1993 (the
company was losing money but that was not the reason I closed it). I think the corp. began making a profit
immediately and that has continued up to today.
A great irony. Anyway, it lives on as very small holding
company and takes up just enough time to be interesting, but not a nuisance nor a drag on my free
time. A real nice situation.

JG

 

[cute fuzzy bunny]

Umbrellas are a little more expensive in CA...$250ish for $1m and $450 for $2m from my ins company.

 

[KB]

I'm just about to start looking for an umbrella plan which of course means I would need to move my homeowners and auto insurance.

Any suggestions in CA?

 

[cute fuzzy bunny]

Hmm...why? Most home/auto insurers offer umbrella coverage...

 

[KB]

My auto is with 1 company and my homeowners is with another. I understand that to get an umbrella, I need ot have both with the same company. And I have both GMAC and AIG for my insurances companies now.

 

[MJ]

My auto is with 1 company and my homeowners is with another. I understand that to get an umbrella, I need ot have both with the same company. And I have both GMAC and AIG for my insurances companies now.

I don't know about CA but in NY, I have my umbrella with my auto insurance which offered the best rate and my home insurance with another.

 

[Mr._johngalt]

I had my cars, truck and motorcycle with GMAC for years.
I switched last year for a lower rate. However, I would
rate GMAC insurance as dead solid perfect over the 3 years I had them.

JG

 

[Ol_Rancher]

When I worked I rode a motorcycle daily for 15 years, no insurance ... if you have a collision your medical coverage is in play. Now my insurance is about $600 for a Mercury, a Toyota, and a farm truck so I feel ahead of the game.

I actually needed the coverage 4 times when I had it still living in the city and the company paid several thousand in damages.

 

[cute fuzzy bunny]

My auto is with 1 company and my homeowners is with another. I understand that to get an umbrella, I need ot have both with the same company. And I have both GMAC and AIG for my insurances companies now.

Ahh...that explains it. I always have kept my auto/home together as they give me discounts for home+auto together. I wasnt ever able to find adequate coverage through two different companies that created any meaningful cost savings to offset the discount offered. In some cases the prices were good, but the company that gave me a reduced rate had crappy scores on settling claims or tended to cancel you at the drop of a hat.

Want a fund time? Insure your car with one company, your house with another, and hit your house with your car...

(no, I didnt do it, but I know someone who did!)

 

[Mr._johngalt]

Stopped at a moving sale yesterday (yeah, I can't seem to drive
past one)

Ended up, buying a 1983 Ford pickup for $400. Probably will
resell it as I am not mechanical and don't enjoy that stuff.
Anyway, until it's sold I don't want to add to my regular car insurance and was thinking about going to a differnt broker/company and buying just the state minimum to be legal.
My regular insurance agent has told me she won't write me anything
with only the minimum required. Thinks it would be unethical
since she knows what I would stand to lose. OR, I could just
go without and take my chances I suppose.

JG

 

[Martha]

Come on John, you don't want to have to go back to work do you? It can't be that expensive to add the truck to your liability coverage. Sell some stuff you scrounged at garage sales and pay for the liability insurance.

 

[Mr._johngalt]

Come on John, you don't want to have to go back to work do you?  It can't be that expensive to add the truck to your liability coverage.  Sell some stuff you scrounged at garage sales and pay for the liability insurance.    

Nope!

 

[TromboneAl]

I hate paying any kind of insurance premium. So far over my lifetime it's been a net loser.

I'd feel the same way you do, but I'm a net gainer. Our house burned in the Oakland fire of 1991, and the insurance company gave us about $700,000. And my wife's operations for a brain tumor probably cost over a million, and we didn't have to pay a penny.

So whenever I get irritated at paying high insurance premiums, I think about that.

Of course those life insurance premiums were a waste -- bummer!

 

[Mr._johngalt]

I'd feel the same way you do, but I'm a net gainer.  Our house burned in the Oakland fire of 1991, and the insurance company gave us about $700,000.  And my wife's operations for a brain tumor probably cost over a million, and we didn't have to pay a penny.

So whenever I get irritated at paying high insurance premiums, I think about that.

Of course those life insurance premiums were a waste -- bummer!

Well, that's why we buy insurance. If I had saved all of those premiums over all those years, it would be a small fortune. Yet, we all know of stories where people were saved from financial disaster. BTW, those
life insurance premiums WERE a waste. Indeed! Right now, I have
pretty minimal insurance on both homes, no boat insurance and no riders
on the homeowners. Health insurance is pretty basic. The next step
would be going bare. I am thinking about cutting back the auto insurance to the minimum required by law. I will need a new agent
though as my current agent refuses to do it.

JG

 

[cute fuzzy bunny]

Al - for a small fee I'm sure we can fix that life insurance problem.

John - for you, an even smaller fee will get the job done

 

[BUM]

I HATE paying any kind of insurance premiums. Its so easy to become over-insured. With the business I had life, biz auto, transit, disability, biz interruption, professional liability, general liability, plus all the personal coverage...ARRGHHH

Now in ER I've cut all the biz related and trimmed the personal. Overall I've had my share of claims...running about even.

BUM

 

[Spanky]

I'd feel the same way you do, but I'm a net gainer. Our house burned in the Oakland fire of 1991, and the insurance company gave us about $700,000.

That's a good deal. I cannot image it would cost $700K to rebuild a house.

Spanky

 

[Nords]

That's a good deal. I cannot image it would cost $700K to rebuild a house.

Sure, that sounds pretty reasonable now, but try to stick to that budget AFTER the hurricane rolls through. Both building materials and competent contractors will be at a premium, and you'll be required to make the new building compliant with all the new codes that have sprung up since the old building was finished. Then there's the cost of the design architect, the building plans, the community association's approval, the city & county permits... have I missed anyone?

To say nothing of your new insurance premiums.

If our house is ever destroyed, the first phone call I'm making is to an independent claims adjustor. I'll let THEM break the news to our insurance company.

 

[BUM]

Ummmmmmmmmmm FFEEEEEMMMMAAAAAAAAA. Now theres a government handout I can relate to. FEMA provides us with low cost flood insurance. We supplement with fire and wind coverage. The coastal winds can be frightening, but its the storm surge that historically has caused the damage and the claims.

 

[TromboneAl]

I cannot imagine it would cost $700K to rebuild a house.

Well, that $700,000 included $160,000 for personal belongings (replacement value) and more for other expenses. The amount for the house was indeed accurate -- the money went right from us to the contractor. Note that this was in 1992.

The funny thing was that the insurance adjuster wouldn't believe how little we'd spent for our stuff, and gave us more. He said things like "There's no way you could have spent only $17 for each of those dining room chairs, we'll give you $100 for each."

 

[soupcxan]

Oh JG, you invite schadenfreude like nobody's business. Let me guess - if you get sued and lose your assets, you'll just have the DW keep on working a few more years! Maybe you don't need insurance after all...

I am thinking about cutting back the auto insurance to the minimum required by law.  I will need a new agent
though as my current agent refuses to do it.