PDA

View Full Version : Car insurance: what would you adjust on my policy?


alee
09-06-2003, 12:39 PM
Received my insurance renewal notice in the mail today... and to be honest, I have never changed anything major on my policy other than miles driven annually. I certainly like State Farm enough to not to leave them.

Would you adjust any of this coverage? This is for a single male, 29 years old, living in NYC, 7500 miles or less driven per year.

http://staff.pop3now.com/alee/insurance.jpg

SpaceMonkey
09-06-2003, 12:53 PM
I have very similar coverage. You may want to consider raising your deductilbes for collision and comprehensive. Mine are $1000 and $300 (vs. 500/250). And I save over $300 a year on my policy.

mquetel
09-06-2003, 01:18 PM
I just made some adjustments on my State Farm policy this past Thurs. Previously I had 100/250 deductible for comprehensive/collision and 100000/300000 liability.

I changed to 250/500 for comprehensive/collision and 250000/500000 liability. The agent mentioned to me that you want to insure yourself for the things you can't afford (like a big liability claim) and perhaps save some of the recurring expenses for things you can.

As SpaceMonkey mentioned you could raise your deductibles. They do seem to make the most difference in annual premium. The changes I made resulted in a net reduction in my premium. Even though I raised my liability coverage quite a bit. At this point, with a 3 week old car, psychologically I couldn't bear to raise my deductibles any higher. Also, I would consider raising your liability coverage. 100000/300000 could go pretty quickly if you were sued... after that, they could start going after your other assets.

Another thing I did was add a million dollar umbrella (which also includes un/under insured motorist coverage) to my house/auto. Made sense for me, may not for others.

·clyde·
09-06-2003, 01:36 PM
I Probably agree with the others on the deductibles. Call your agent and explore. The deductibles can make a big difference in rates depending on the state and the carrier. It might be worth considering dropping the car rental and travel expense. It's cheap, and would pay for itself if needed, but do you really need it? You barely drive at all anyway, so the loss of your car while being fixed shouldn't be that big of a deal.

xspeedy
09-06-2003, 02:09 PM
100k liability is dangerously low. take them up to 250/500 and then u are eligilble for the $2M umbrella policy that costs pennies per year.

it's the best money u will ever spend on anything...even $2M, with the broken court system and idiotic juries out there is the bare minimum i would carry before even get behind the wheel of any car these days (in the USA that is) :rolleyes:

But typically, people are not sued for more than they have, so I'm not sure it is worth having more insurance than what you are worth.

I could be wrong, but I think this is generally the case.

ff
09-06-2003, 02:16 PM
That's pretty much exactly how we have ours (also State Farm). Personally, I feel that the emergency roadside service and rental reimbursement lines are a waste of money. Doesn't BMW cover roadside service for free anyway?

·clyde·
09-06-2003, 02:17 PM
That's pretty much exactly how we have ours (also State Farm). Personally, I feel that the emergency roadside service and rental reimbursement lines are a waste of money. Doesn't BMW cover roadside service for free anyway?
I didn't even catch the road side assistance. :banghead:

xspeedy
09-06-2003, 02:38 PM
do u have one-third of your take-home pay for the next 20 yrs? right now u do... if u hit a small school bus full of handicapped children, u probably won't.

If I hit a school bus of any kind, I'll be the one needing medical help ;)

Are you referring to wage garnishing? We need a lawer to clarify.

mquetel
09-06-2003, 03:55 PM
But typically, people are not sued for more than they have, so I'm not sure it is worth having more insurance than what you are worth.

I could be wrong, but I think this is generally the case.

A big motivator for me on the umbrella is that it came with un/under insured coverage. So, while the primary purpose of the umbrella is to financially protect me from liability claims, this additional coverage allows me to collect if I win a claim against someone who can't pay the amount of the judegment.

GimpyMcFarlan
09-06-2003, 05:30 PM
I would dump car rental coverage. :confused: 7500 miles per year and NYC residence.

tommyd
09-06-2003, 06:04 PM
I would dump car rental coverage. :confused: 7500 miles per year and NYC residence.

I concur with raising the deductible...
granted that if an accident does occur, you're on the bill for the first ($1000?) but considering the savings in your premium over the course of your life vs. the number of accidents you'll get into, you'll be saving yourself a lot of money...

AG
09-06-2003, 06:56 PM
That's pretty much exactly how we have ours (also State Farm). Personally, I feel that the emergency roadside service and rental reimbursement lines are a waste of money. Doesn't BMW cover roadside service for free anyway?

BMW roadside assistance will only tow you to a dealer, not anywhere else. When I tried to use them, they wouldn't tow my car home even though home was closer than the dealer. I had to use the towing coverage on my insurance policy.

brave1heart
09-06-2003, 10:00 PM
Only $872.20 for a relatively new 3-series insured in NYC :yikes: :yikes: My eyes almost popped out until I saw that your address is a P.O. box in New Jersey. I bet you'd be paying over 3 grand (possibly a lot more) if you were insured at the primary place of garaging your car in NYC. If your insurance company finds out about it, they will refuse coverage in case of an accident.

alee
09-06-2003, 10:16 PM
Only $872.20 for a relatively new 3-series insured in NYC :yikes: :yikes: My eyes almost popped out until I saw that your address is a P.O. box in New Jersey. I bet you'd be paying over 3 grand (possibly a lot more) if you were insured at the primary place of garaging your car in NYC. If your insurance company finds out about it, they will refuse coverage in case of an accident.
Bzzzt, the PO Box is State Farm's address. That sir, is my 6 month policy cost for a car garaged in NYC and registered in the fine state of NY. :D

johnlew
09-06-2003, 10:28 PM
Alee, I know you aren't going to like my suggestion, but dump the car. Between the cost of garaging, insurance, depreciation and the cost of money, you could easily, I think, rent a Bimmer for the times you need a fix for much less. With the money saved and the earnings on the money received, you'd be in much better shape to buy a new, or beautiful preowned bimmer, when the time comes. JMO.

alee
09-06-2003, 10:34 PM
Alee, I know you aren't going to like my suggestion, but dump the car.
LOL, we've been down this road before. ;) I am using it more these days, once a week typically... but I haven't balanced those costs against doing it another way. Your recommendation hasn't fallen on deaf ears though -- it is a logistical nightmare to keep a car here.

Mr. The Edge
09-06-2003, 10:36 PM
I would change "2001 BMW 330Ci" to "2004 BMW M3"

alee
09-06-2003, 10:38 PM
I would change "2001 BMW 330Ci" to "2004 BMW M3"
Don't you corrupt me. :mad: I just paid my quarterly estimated taxes, and that's enough financial trauma for September.

tgravo2
09-07-2003, 12:53 AM
Glad to see you staying with State Farm Al, but as for the amount you pay, I wish I paid that :D

Mine is $1200 every 6 months I believe :eek:

mquetel
09-07-2003, 03:06 AM
Don't you corrupt me. :mad: I just paid my quarterly estimated taxes, and that's enough financial trauma for September.

Affluenza does have a few annoying symptoms... :p

:angel:

Pinecone
09-07-2003, 05:25 AM
I agree with raising your liability limits. I run them as high as possible. The additional cost is minimal.

THink about it, you hit a Ferrari Enzo, and you just blew past your liability limits. Be at fault in an accident with a large family with serious injuries, right past your cap.

As for rental and roadside. If you do take trips in your car, and would be seriously inconvenienced if you didn't have it, then the coverage is good. But remember, this if for when YOU are at fault in the accident. If someone hits you, THEIR insurance covers you for a rental car.

I prefer AAA Plus for my roadside assistance, along with the other things they give you. We just got a credit card with them that gives cash back on ALL gasoline purchases, any brand.

High deuctables are a double edged sword. But explore the costs with your agent. If you can save $300 per year, raising your deductable by $500 per incident, it is more than paid for in 2 years. But saving $50 per year for raising the deductable by $500 doesn't make sense.

CMeltmar
09-07-2003, 08:02 AM
Received my insurance renewal notice in the mail today... and to be honest, I have never changed anything major on my policy other than miles driven annually. I certainly like State Farm enough to not to leave them.

Would you adjust any of this coverage? This is for a single male, 29 years old, living in NYC, 7500 miles or less driven per year.

http://staff.pop3now.com/alee/insurance.jpg


As a personal injury attorney, I have had lots of experience with individuals who have been seriously hurt in car accidents by drivers with insurance coverage adequate to compensate them for their injuries: lost work, pain and suffering, and medical expenses. I would raise your insurance coverage to the maximum for uninsured and undersinsured coverage. You currently have 100/300, which means if some drunk driver with minimum insurance (sometimes $25K), knocks you into a ditch and leaves you with some broken bones, the most you could collect would be $100k. Raise the UM/UIM to 250/500.

SARAFIL
09-07-2003, 08:08 AM
BMW roadside assistance will only tow you to a dealer, not anywhere else. When I tried to use them, they wouldn't tow my car home even though home was closer than the dealer. I had to use the towing coverage on my insurance policy.

If the car is dead, what use do you have for it at your house? They don't want to drop it off there, because they are assuming you'll call back the next day to have it towed to the dealer from your house.

alee
09-07-2003, 12:13 PM
Thanks for the advice everyone. Looks like the 250/500 is definitely the way to go. I will explore deductibles on Monday. Roadside will probably be pulled, and rental as well.

Patrick
09-07-2003, 01:35 PM
Mine is $1200 every 6 months I believe :eek:

Strange. Mine is a mere 37 EUR a month, FULL coverage, including windshield (0 EUR deductible), moose accident insurance and so on.

I am a 33 year old male, married, no tickets EVER, no accidents (that I have reported to the Man or my insurance company) live in a minor metropolitan area, drive my car about 10,000km a year including driving in foreign countries.

I do hate insurance companies though. I guess it is a necessary evil ...

:eek:

-

alee
09-08-2003, 08:09 AM
Called State Farm this morning:

To go from 100k/300k to 250k/500k (qualifying me for the umbrella), and removing emergency roadside and car rental, my premium goes up from $872.20 every 6 months, to $1053 every 6 months. I am not adjusting any deductibles ... decided what I have right now I'm pretty comfortable with.

I think this is good enough for what I need. I just need to put my request in writing, and fax it in and it'll be effective immediately. Thanks to all for your advice.

mquetel
09-08-2003, 08:35 AM
Called State Farm this morning:

To go from 100k/300k to 250k/500k (qualifying me for the umbrella), and removing emergency roadside and car rental, my premium goes up from $872.20 every 6 months, to $1053 every 6 months. I am not adjusting any deductibles ... decided what I have right now I'm pretty comfortable with.

I think this is good enough for what I need. I just need to put my request in writing, and fax it in and it'll be effective immediately. Thanks to all for your advice.

:yikes:

That single change for me would have resulted in less than a $30/year premium increase. Location, location, location... :tsk:

Ausgang
09-08-2003, 08:38 AM
Well, you could get around to asking Ann to marry you.:yikes:

Alternatively, go to one of those insurance-sponsored safety classes. They have them over a few evenings or for a day on Saturday sometimes. It makes quite a difference, and lasts for something like 3 years.

alee
09-08-2003, 08:45 AM
Well, you could get around to asking Ann to marry you.:yikes:
If she ever finishes school... :rolleyes: :bigpimp:
Alternatively, go to one of those insurance-sponsored safety classes. They have them over a few evenings or for a day on Saturday sometimes. It makes quite a difference, and lasts for something like 3 years.
I hear it's sitting through a bunch of videos about nothing. :) I can live with the higher premiums... I need all the protection I can get now that the Lamborghini is parking in my garage... I do feel my car pulling towards the Lambo whenever I drive by it. :p

johnlew
09-08-2003, 09:04 AM
Alee, what do you pay a month to garage your car?

alee
09-08-2003, 09:06 AM
Alee, what do you pay a month to garage your car?
349.69/mo

Dr. Phil
09-08-2003, 09:22 AM
349.69/mo
:tsk:

Per mile your car has got to be the most expensive on this board :eek: :p

johnlew
09-08-2003, 09:30 AM
349.69/mo

Hmmm...

Annual costs...

Garage 4200
Insur 2100
Deprec 2100
$30k@2% 600
Registration ?
Maintenance ?
Fuel ?

_________
9000

less cost of car rental when needed.

That's an expensive toy. How much of a raise would give you $9k after taxes annually?

alee
09-08-2003, 09:41 AM
That's an expensive toy. How much of a raise would give you $9k after taxes annually?
~ 7%? I think my bigger problem is my commuting expenses... I think those exceed my annual car expenses. :( That I'm actively working on to get taken care of.

johnlew
09-08-2003, 09:47 AM
~ 7%? I think my bigger problem is my commuting expenses... I think those exceed my annual car expenses. :( That I'm actively working on to get taken care of.

That'd be a nice instant raise. You need to commute. You don't need your car in NYC. IMO.

Now, if you had a nice place in the Hamptons where you kept the car, then I'd understand.

alee
09-08-2003, 10:00 AM
That'd be a nice instant raise. You need to commute. You don't need your car in NYC. IMO.
Actually I really don't need either... the commute I am doing right now is largely unnecessary and I'm working on replacing with a local job. The car is largely unnecesssary but a lot of fun. Eliminate both, I have a lot of extra cash but I'm bored. :)

Seriously though, I understand the perspective you're coming from. But as long as I am financially responsible and can meet my costs and continue to save, there's certainly room for emotionally driven things. After all, none of us NEED a BMW.

johnlew
09-08-2003, 10:15 AM
Seriously though, I understand the perspective you're coming from. But as long as I am financially responsible and can meet my costs and continue to save, there's certainly room for emotionally driven things. After all, none of us NEED a BMW.

I understand your POV also, and of course, it's your money and you have every right to do as you please with it, even buy an SUV if you so desired. Enjoy!

rkny
09-08-2003, 10:21 AM
Al -- I'm a bit late to this party, but just two weeks ago I changed my State Farm policy to 250/500 and raised the deductible to $1000 -- the premium actually ended up being about $50 cheaper -- you might want to look into that. I was paying about the same as you are, living on the west side.

AF
09-08-2003, 10:22 AM
I don't know much about Insurance :p but from what I know I agree rasing the Bodily Injury to 250/500 & raising the Uninsured/underinsured mototirst coverage to 250/500

In addition I would also increase the PIP to the maximium, purchase OBEL coverage (the increase in cost is minimal for both), raise the Comp & Collision deductibles to $1000 and get rid of the full glass.

Insurance is not for little claims like a windsheild, it is there for when you have a large loss that you could not comfortable afford to absord.

Putting in a claim for a windshield or towing by itself will give the company ammunition to cancel you for claim frequency . . .

My last piece of advice would be to ask State Farm to make sure you are in their highly preferred Tier if you have been Insured with them for over 3 years. Unless of course you are in that Tier already or they don't offer a Preferred Tier

rkny
09-08-2003, 10:28 AM
Hmmm...

Annual costs...

Garage 4200
Insur 2100
Deprec 2100
$30k@2% 600
Registration ?
Maintenance ?
Fuel ?

_________
9000

less cost of car rental when needed.

That's an expensive toy. How much of a raise would give you $9k after taxes annually?

In defense of Alee and as someone else who keeps a car in NYC, I must say that having a car in NYC is totally "worth it" to me, with emphasis on "to me". Yes, it's expensive, but waiting in lines at rental counters on long weekends were a huge pain, and there's just no substitute for the freedom of knowing that you can leave the city on a whim anytime you want, and I do find myself using the car almost every weekend. I didn't really like living in NYC until I got a car -- but as soon as I got a car and can leave it anytime I want, I found NYC to be a great place to live. It's hard to explain but I know others who share my sentiments.

ObD
09-08-2003, 10:50 AM
After all, none of us NEED a BMW.

True.


You can't take it with you.
If you don't spend it, the government will find a way to spend it for you.
You are participating in the purest form of welfare ... capitalism.

;)

alee
09-08-2003, 11:02 AM
My last piece of advice would be to ask State Farm to make sure you are in their highly preferred Tier if you have been Insured with them for over 3 years. Unless of course you are in that Tier already or they don't offer a Preferred Tier
I have a guaranteed renewal endorsement on my policy. I assume this is the same? I have been with them for close to 14 years... they've been really good to me.

sp330i
09-09-2003, 09:02 PM
Thanks for the advice everyone. Looks like the 250/500 is definitely the way to go. I will explore deductibles on Monday. Roadside will probably be pulled, and rental as well.

Many here have given you great advice. I would agree with raising your deductibles considerably on your comprehensive and collission coverages.

Before you raise your liability coverage on your car insurance. determine the added cost of raising this coverage (probably minimial) against getting an umbrella liability policy (probably more) that would cover more perils than just involving your automobile. Most umbrella policies cover you above and beyond your homeowners or automobile coverages and follow you everywhere. If you tap someone accidentally on the streets of NY, they fall and hurt themselves, and then sue you, your covered.