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#32
11-02-2007, 04:35 PM
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Re: Car Insurance Thread
I recently dropped all comp and collision on my car (my car is only worth ~$4k so if i total it I just plan to buy a new one). I still have liablity and some form of underinsured coverage incase someone hits me who is not insured, which comes out to approximately $200 every 6 months (about $33 a month). Also, assuming the accident is not my fault, damage to my car would still be paid for by the other driver's insurance. Comp/collision is only for damages you are at fault for. I guess you could say I am willing to take on the risk of $4k (minus any decutibles and insurance premiums I'd have to pay), that I won't cause any accident that I would be found responsible for. I have already saved a good portion of my car's current value in reduced premiums that I am putting what I would have paid the insurance company into a fund that will go towards a new car and/or cover any expenses I may incur from my reduced coverage. If you have the discipline to do this I really think that is the way to go.
for those of you with low deductibles (around $250), I would highly recommend raising your deductibles to around $1000. In most cases, the rates you save will more than make up for any increase in deductible you will have to pay, often within just a year or 2. Unless you get in a crash per year or something ridiculous like that, you should have high deductibles. In the long run, you'll end up saving much more than you have to pay out in higher deductibles from potential future crashes. Put the amount you save each month into an online savings account as a type of car emergency fund. If you never get in a crash, eventually you can stop contributing to this fund or maybe even buy a new car with it someday. 
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#33
11-02-2007, 05:57 PM
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Re: Car Insurance Thread
[ QUOTE ]
[ QUOTE ] I am pretty stoked about this, but at the same time I have always found it a bit troubling that the state forces us to have insurance and the rates are generally so insanely high. It seems like theyre kind of subsidizing the insurance companies with this law, no? [/ QUOTE ] I'm not sure about the States but in Canada we only need to buy 3rd party insurance which is pretty minimal. I'm pretty sure that is the same in the States. Your coverage seems to be much higher then what would be legislatively required by law. [/ QUOTE ] We pay more in the US because courts like to award people large amounts of $$ for stuff like pain & suffering. Your rates will be determined by: your age, car you have, where you live (which factors in accident frequency/high traffic patterns/legal system attitude towards lawsuits). You can save $$ by combining auto & renters/home ins and save as much as 10-20%. And most state laws don't require insurance, just proof of financial responsibility and some sort of funding to meet the minimum requirements....you can keep a separate account with at least $10,000 (will vary by state) waiting to pay if/when you hit someone. Or you can carry an insurance policy for a lesser rate.
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#35
11-02-2007, 09:38 PM
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Re: Car Insurance Thread
[ QUOTE ]
Should I get renters insurance also? I always imagined this was a scam. [/ QUOTE ] Renter's insurance is very cheap (less than $100 a year), and basically will replace all your belongings in case of theft/fire. Also, most companies give you a discount if you combine your renter's insurance with your auto insurance, and the resulting discount makes it almost free.
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#37
11-03-2007, 06:18 AM
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Re: Car Insurance Thread
[ QUOTE ]
Should I get renters insurance also? I always imagined this was a scam. [/ QUOTE ] Normally I'd say no unless it is required as a condition of your rental agreement. It really isn't that big of a decision though as you are looking at under $300 a year. If you have any jewellery or watches of great then $8-10k then you should get insurance and have a rider added to cover that item specifically. That way even if you lose the item outside the home it is covered.
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#38
11-03-2007, 10:07 AM
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Re: Car Insurance Thread
[ QUOTE ]
[ QUOTE ] Joker, You're wrong. Neither you nor the insurance company are betting on anything. You are trading volatility. [/ QUOTE ]   [/ QUOTE ] That's funny, but you nonetheless have a facile understanding of why insurance companies are willing to sell protection. It's not because they think rare events won't happen.
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#39
11-03-2007, 11:00 AM
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Re: Car Insurance Thread
[ QUOTE ]
Renter's insurance is very cheap (less than $100 a year), and basically will replace all your belongings in case of burglary/fire. [/ QUOTE ] Sorry to be "that" poster, but it's an important difference when you're talking about renter's insurance. Unlike most homeowner's policies, most renter's policies do not cover simple theft. When a person steals something from you without breaking into your home it is considered theft as opposed to burglary. Most common occurrences are when you invite someone into your house (which includes large parties where you may not know everyone in attendence, but they have your consent to be there) or when you leave your doors/windows unlocked. There is a lot of potential for fraud in renter's insurance, so most companies require evidence of forcible entry before they will pay out a claim. A good renter's policy is a must, in my opinion, and as others have mentioned, it is very very cheap. Most people underestimate the value of what they own. They think: "Well, I have a big TV for a couple grand and my computer and some pots and pans. If I lost everything I could replace it for less than 5,000 dollars." When you have a fire (which for apartment dwellers is always a greater possibility because you don't have control over what the idiot next door does) you may have to replace everything: towels, shirts, socks, toilet brush, trash cans, sheets, bedspreads, mattresses, shoes, wallet, watch, dishes, silverware, spices, etc. Stroll through Bed, Bath, and Beyond, or even Wal-Mart, and think about purchasing a new one (even the cheapest you can) of everything you have in your home. It adds up really quickly. And that's before you get to electronics. Also, a renter's policy will often pay for you to stay somewhere else, which most people will be surprised to learn their landlord is usually not responsible for. The Red Cross will give you a few days worth of vouchers at the local Best Western and then you are on your own. Perhaps even more important, the liability portion of the policy also protects your net worth (and bankroll) in the event that YOU are the idiot next door and you leave your stove on and your landlord's insurance company decides to sue you. Edit: It is very important that you shop for "replacement cost" coverage for your personal belongings. "Actual cash value" coverage is virtually worthless.
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