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alee
09-03-2002, 04:01 PM
I never really gave much thought to the area on my State Farm insurance that reads:


Ordinary use of vehicle...
To and from work or school, over 100 miles weekly. Driven over 7,500 miles annually. (National average is 12,000 miles annually)


Now that I'm driving about 150-200 miles a MONTH, I'm wondering if my insurance rates will change if I change this information. Is there a designation like "pleasure" or maybe something like less than 5000 miles annually, and would it significantly lower my premium? I've already got all the major premium reductions (multiple line, antilock brakes, antitheft, vehicle safety and accident-free).

Also, my premium notice today indicates that I can get further discounts for DRLs and Accident Prevention courses. The 3% discount for DRLs isn't worth the hassle (the dealer cost to get them activated would cancel it right out :D ), but the Accident Prevention course is a healthy 10%. Anyone done one of these? If so, how much does it cost and more importantly, is it worth going to for the 10% discount?

Dr. Phil
09-03-2002, 04:05 PM
I'm not sure if you can designate your car as pleasure since you have only one:dunno: If you can it does reduce the premium a fair amount.

This is a good question for Alan to answer :)

Ack
09-03-2002, 04:09 PM
Alee-

The defensive driving courses is the best bang for the buck. It only costs about $40 and its good for 3 years and 10% reduction/yr. Not bad considering in NYC the rates for a BMW can be over $3K/yr. I've taken the course religiously the last 9 years.

Cliff
09-03-2002, 04:10 PM
In California, State Farm had a 7500 mileage threshhold. I had myself in that premium classification when it was appropriate. I was commuting and so on, I just wasn't putting that many miles on the truck I had at the time. It had a big impact on my premiums. State Farm requested my odometer mileage every time the policy came up for renewal - that was all they were concerned about.

alee
09-03-2002, 04:19 PM
Originally posted by Ack
The defensive driving courses is the best bang for the buck. It only costs about $40 and its good for 3 years and 10% reduction/yr. Not bad considering in NYC the rates for a BMW can be over $3K/yr. I've taken the course religiously the last 9 years.
:thumbup: That's what I needed to know! $40 isn't bad considering my annual premium is a touch over 2k a year.

How long is the course, and is it (for lack of a better term) "lame"?

fuz
09-03-2002, 04:19 PM
There should be a premium discount for low mileage cars. I had it when I was a teenager and it cut my insurance rates in half. Although now that I have my bimmer... :lmao:

Ack
09-03-2002, 04:34 PM
Originally posted by alee

:thumbup: That's what I needed to know! $40 isn't bad considering my annual premium is a touch over 2k a year.

How long is the course, and is it (for lack of a better term) "lame"?

The course is very lame and lasts 5-6 hours. It usually consists of a bunch of movies. If you go with a friend, it goes by much quicker. It still is worth the $40 and the time IMO.

Nick325xiT 5spd
09-03-2002, 04:39 PM
Picture Mr. Mackie:

"Driving fast is bad. You shouldn't drive fast...."

Michael330
09-03-2002, 04:44 PM
Always designate the lowest possible miles and a woman as a primary driver (your wife for instance). This combination lowers your premiums substancially.

alee
09-03-2002, 05:00 PM
Originally posted by Nick325xiT 5spd
Picture Mr. Mackie:

"Driving fast is bad. You shouldn't drive fast...."
mmmmm-kay? :D

Kaz
09-03-2002, 05:02 PM
Originally posted by Dave 330i
My suggestion, try Mercury Insurance.

I don't think Mercury "Oh, this Taiwan part fits fine!" Insurance is nationwide.

Nick325xiT 5spd
09-03-2002, 05:03 PM
Originally posted by alee

mmmmm-kay? :D

Mmmmmkay.

Dr. Phil
09-03-2002, 06:24 PM
Originally posted by Kaz


I don't think Mercury "Oh, this Taiwan part fits fine!" Insurance is nationwide.
:lmao:

I've never heard of them around here:confused: Sounds like I should be glad about that:eek:

johnlew
09-03-2002, 07:31 PM
Never hurts to try. In your case it surely is a pleasure vehicle. Most OCD outlets are.

rbright
09-04-2002, 07:41 AM
In many states, you can download the course and take it on your home computer. I live in Georgia, and it is an option here. Just pay the $42, download, and it takes about 4 hours to take on your computer on a lazy Saturday morning.

Check first to see if your state accepts the online version, several do.

Spiderm0n
09-04-2002, 08:06 AM
Alee,

2K a year for insurance seems high... I guess its another cost of living in NYC. Is it really worth it to keep your car? Add up all the costs: insurance, parking, CLEANING SUPPLIES, depreciation, etc. If you divide that by the 175 miles you are driving a month its gotta be costing you over $5 per mile you drive it!


Just a thought...

alee
09-04-2002, 08:36 AM
Originally posted by Spiderm0n
2K a year for insurance seems high... I guess its another cost of living in NYC.
It's pretty steep... I was paying about 1200/yr in Philly. 2k/yr with State Farm is for a 28 yr old single male, pristine driving record, 250 comprehensive, resident of NYC, car parked in NYC. I think I did ok. :)
Is it really worth it to keep your car? Add up all the costs: insurance, parking, CLEANING SUPPLIES, depreciation, etc. If you divide that by the 175 miles you are driving a month its gotta be costing you over $5 per mile you drive it!
Oh no, it's the voice of common sense! :D It does get very expensive... parking and insurance cost me a touch over 500/mo total. Add to that the misc costs, and we're approaching insanity. :yikes:

Cleaning supplies is no longer a huge issue... 175 miles a month means my car gets a little dusty after 7 days. :D I've been OD'ing on Speedshine to care for that problem.

In my case, having a car is important for business reasons. Having a BMW, well... that's different. That's all emotional. :bigpimp:

Dr. Phil
09-04-2002, 08:56 AM
Originally posted by alee
Oh no, it's the voice of common sense! :D
Maybe we should introduce you the two of you.............

"Al meet common sense...................common sense this is the Al we told you about" ;)

In my case, having a car is important for business reasons. Having a BMW, well... that's different. That's all emotional. :bigpimp:
What just in case Amtrak quits running:dunno: Or the subway/taxi service dries up in NYC.:rolleyes:

Oh I know so you can drive to the data center to check on your stuff. How far is Atlanta or San Antonio from you:yikes:


-----------------------

The real question Al is when you take the occasional drive, do you feel it is money well spent. If so :thumbup: to you :D

alee
09-04-2002, 09:09 AM
Originally posted by PM 325xiT
The real question Al is when you take the occasional drive, do you feel it is money well spent. If so :thumbup: to you :D
Who needs Viagra? :D

Dr. Phil
09-04-2002, 09:40 AM
Originally posted by alee

Who needs Viagra? :D
That's a good enough answer for me. But maybe just a little TMI:yikes:

AF
09-04-2002, 10:39 AM
Alee, I tried to reply last night but was having trouble with this board for some reason.
First, let me give you some answers to your questions.

1) There is a 'Pleasure' rate and it is lower then the 'driving to work' rate. If you are not using your car to drive to work, I would send a fax to your agent and let him/her know the following
"As of (enter the date here that you no longer drive to work) my car is used for pleasure use"
Do not get anymore specific then that, there is no reason to give them more information then they need unless they ask. Thjis would help prevent a future disclaimer of coverage. For example, let's say you actually one day need to drive to work and you have an accident, you are giving the Company a good reason to try and disclaim coverage becasue you wrote a letter specifically stating 'you do not drive your car for work' So that is why you only give the informaiton they need.
The reason you want to give the date you stopped using it to drive to work is so that they backdate the endorsement (change) and you get a credit from the time you stopped using it for this purpose.

2) I would change your deductible to at least $500 though $1000 would be a greater savings. No one carries a $250. deductible anymore in New York unless your policy was written many years ago. If you had a claim that was under $1000, you'd pay it out of your pocket anyway since you wouldn't want to take a chance in either
a) getting dropped)
b) an increase in your future premium due to the claim

3) I am not a State farm agent, but they might give you a discount for driving under 7500 miles a year. I would call them and inquire about it. None of my Insurance Carrier's offer this credit but Allstate does and State farm might. just make sure this is true because ti is very easy to prove it isn't for the Carrier if there is a future loss.

4) Defensive driving gives you a discount on the Liability and collision coverages only. Do not think your going to get a full discount on all of your coverage's. Usally it is worth the savings especially here in New York where the premium's are so high.

5) $2000. a year for a 330Ci garaged in Manahttan is not a bad rate. Manhattan has higher rates than some of the other counties in New York for obvious reasons.

Also, State Farm in general has competitive rates here in New York. They're not my favorite Company but there is no doubt they are offer a decent rate.

BTW I've got the credit for the DRL's on my policy eventhough mine are off . . . When they asked me if my car had this feature I said yes, not that I recommend 'not telling the whole truth' because it can lead to a disclaimer of coverage due to misrepresentation.

If you need any other Insurance questions answered, send me a PM or an email anytime . . .

Cliff
09-04-2002, 11:53 AM
Originally posted by Alan F
3) I am not a State farm agent, but they might give you a discount for driving under 7500 miles a year. I would call them and inquire about it. None of my Insurance Carrier's offer this credit but Allstate does and State farm might. just make sure this is true because ti is very easy to prove it isn't for the Carrier if there is a future loss.


State Farm does. In my case, it was around 15-20% of the premium. The rate tier is based purely on mileage -- intended use is irrelevant.

alee
09-06-2002, 08:10 AM
Alan F and Cliff3, etc.

Thanks for all the help. State Farm asked me to fax in a formal statement on how I get to work now (which I did this AM). The main office has to review my request, and then my premiums are lowered. They didn't say how much, but said typically 15%.

Add up the rest of the premium reductions that I can get, and owning a car in NYC actually starts looking affordable! :D

johnlew
09-06-2002, 08:12 AM
Originally posted by alee


Add up the rest of the premium reductions that I can get, and owning a car in NYC actually starts looking affordable! :D

More affordable than renting one (a BMW) when you need it? Don't forget to offset costs of renting with returns earned on the proceeds of the car sale, plus depreciation, garage, maintenance, etc., etc.

AF
09-06-2002, 08:17 AM
Originally posted by alee
Alan F and Cliff3, etc.

Thanks for all the help. State Farm asked me to fax in a formal statement on how I get to work now (which I did this AM). The main office has to review my request, and then my premiums are lowered. They didn't say how much, but said typically 15%.

Add up the rest of the premium reductions that I can get, and owning a car in NYC actually starts looking affordable! :D

Whatever you do, don't let them jerk you around . . . They HAVE to lower the rate and change that class . . .

If for any reason, they don't do it . . . email me.

alee
09-06-2002, 09:02 AM
Originally posted by johnlew
More affordable than renting one (a BMW) when you need it? Don't forget to offset costs of renting with returns earned on the proceeds of the car sale, plus depreciation, garage, maintenance, etc., etc.
Well, I already took the biggest depreciation hit ... the day I drove it off the lot. :(

If I drive a worst case of 5000 miles a year, with 20k miles on the clock right now, and probably 1000 miles this year, by 2006, I will have a 5 yr old car with 41k miles, which should be worth more than what it would have been (17k miles a year, 5 years = 85k miles).

Maintenance is included until 2004, so nothing to worry there (at least for 2 more years).

The only thing that really sucks in my opinion is the garage costs... garage is a total loss... 340/mo... 4080/yr. I can't really get into a cheaper garage without dealing with other issues like dings and scratches from the valet. Add to that 1800/yr insurance, 5880/yr.

But the upside is it's my car, and I can take it out whenever I want without needing to make special arrangements. Whether that's worth 5880/yr + misc. costs and depreciation depends on how crazy you are. :)