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Insane in the membrane!
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Discussion Starter · #1 ·
I'm already happy I started this thread. I think this is rather important, and I want to hear from other people who own similar cars what coverage they got, and what they pay for car insurance. I just talked to my dad, and let me give you a bit of history, 2 years ago, he got in three minor accidents and got a speeding ticket. He's close to 70yo and is definitely not driving as good as he used to, but then again he never really was a good driver. Anyways he has a TERRIBLE driving record, and if only the last 5 years counts, he still has those three accidents and a speeding ticket. His insurance was actually cancelled because of it, but he was able to find another insurance company to take him. He told me he just got his insurance bill in the mail and was harping about how expensive it is. So I find out that his bill is roughly $450 for 6 months!!! He drives a new Chevy Impala also. I on the other hand have a completely CLEAR driving record, absolutely nothing in the last 5 years, and I drive a car that is worth probably $3000, and I pay $110 a month! I have full coverage, just like my dad. Now the insurance broker did say my car fell into there more expensive insurance bracket, but I can't imagine it would affect my insurance to the point that I'm paying $35 extra a month on a car that isn't worth anything, compared to a NEW car being driven by someone with 3 accidents and a speeding ticket. :dunno: I need figure this crap out!
 

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Devil's in the details. There could be large differences between the deductibles and coverage maximums between your dad's plan and yours. Comparing the details of the coverage in the various categories (deductible, property damage limits, health services limits, uninsured drivers limits, etc) you are each paying for could reveal how much you are being ripped off.

I've always heard age and gender and factors when actuaries compile risk assessment between applicants. If your cars are registered in different zip codes, that can have an impact on premium pricing. When paying for full coverage I am sure the average repair estimate of the make/model is taken into account by your insurance company, likely giving an advantage to the Impala.

There are way too many factors to make an easy comparison of cost per month, I pay ~$35/mo for liability only at somewhat higher coverage limits ($300k), am 31 with a clean driving record, live in NJ, live in an urban zip code, insuring a '99 328i.
 

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Insane in the membrane!
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Discussion Starter · #3 ·
Ya I don't know if I am brave enough to drive with liability only, even though my gut tells me that is the right thing to do. We do have the same $500 deductibles, and our cars are even registered in the same zip code. My car might be more expensive to repair but only up to a ceiling of $3000! As compared to my dad's car which the insurance would have to pay up to $20000! Very frustrating, I'm going to go see my broker. Also I'm with Progressive.
 

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Shopping around is a nightmarish hassle, but I imagine it could give you a little more peace of mind you are getting the best deal the actuaries will allow for, hah.

Always have to laugh every time I see a Geico, Progressive, or Allstate commercial: Not because of their "hilarious" adverts but because how many dollars of your premium as a fraction is going straight to the marketing department. Seeing as I assume they are publicly traded companies I guess that data is available somewhere but I am happier to imagine it as I mute their ad campaigns.
 

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Insane in the membrane!
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Discussion Starter · #5 ·
Well I could care less about that, I just want to have the lowest rate I can get while still maintaining coverage. I just got off the phone with progressive, and apparently since there was a lapse in my insurance (I moved back here from somewhere else) that makes my insurance more expensive, and by next year I will be paying $13 less a month, that still doesn't get me anywhere close to what my dad is paying though. Actuarially who do you think is a more at risk driver, a male at 28? or a male at 70?
 

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I dunno, I am not an actuary =) 28yos may very well be more statistically risky since they are probably not retired like a 70yo, commute places because of implied employment, and drive an early model sports car :D

Ins cos have mountains of data on the subject which is then modified, I guess, by what margins they can charge based on the success of their marketing campaigns. Take the details of your coverage to another few companies (start with whoever your dad is insured by) and see if you can get a better deal?

I think I am gonna comparison shop my own coverage this afternoon thanks to your inspiration.
 

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Insane in the membrane!
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Discussion Starter · #7 ·
LMAO SERIOUSLY? You pay $35 a month! Progressive told me that if I get liability only, I will be paying $62 a month! It doesn't help though that I am driving in one of the WORST driving states statistically, lots of bonehead drivers here. You on the other hand, NJ has one of the best driving records in the country!
 

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Age, gender, vehicle type, geographic location, annual miles driven, type of driving, coverages, deductibles, are the generic variables. Then those are adjusted based on individual driving records. You typically see a cost drop when you turn 30 and then another significant one at 40, then it tends to decline in cost as you age. Multiple policy discounts become a factor as you accumulate more stuff, and more recently corporate discounts factor in also. Last year the corporation I work for negotiated an employee discount with a major insurance carrier. I was already with that carrier, but we got an immediate additional 10% off our cost.

States dictate minimum coverages and it varies by state which is another factor in trying to compare rates between forum members.

With respect to whether or not to carry comprehensive, that decision depends on whether you can afford the loss of the value of the car plus the replacement cost all out of pocket or if you want some of that offset by having insurance. While our E36s have some age and lower values, they aren't worthless and with some work (well, a LOT of work) and good documentation you can get a reasonable value if your car is totaled. Initial offer from the insurance company on my car was $3,600. It took about 6 weeks of concerted effort on my part but we settled at just under $7K.
 

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Insane in the membrane!
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Discussion Starter · #9 ·
How did you do that? Because I know they don't care about what you do to your car, they care about how much tread is on your tires and that is it. The rest is "maintenance", "but I just payed $20,000 getting my car restored", "...maintenance".
 

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I know at least someone else from NJ is on these forums and I'll let them chime in on how conscientious and defensive our fellow motorists are =). NC has the 3rd lowest average auto insurance rates in the nation (3/2013)

Call the company that insures your dad to get a quote. That will at least get you a second data point as to what you should be expecting to pay. Like dc_wright said, this stuff is based on a set of rather impersonal variables modified by the expectations of the specific company you are dealing with.
 

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Insane in the membrane!
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Discussion Starter · #11 ·
Wow that is so disproportionate, drivers in NC don't have much of a better track record than Louisiana which is the WORST in the country, so it make sense they are paying the most. The more I talk about this the more angry I get. I'm going to my broker tomorrow, and my dad is coming with lol!
 

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I certainly didn't get $ for $ what I put into the car but I had good records (all my receipts) and two major items were the relatively new cabrio top and rebuilt tranny. That got the offer up to about $5K. Then I had to attack each of the comparables they had used to determine what "market value" was. Most of the insurance companies don't use the consumer guides, they use a third party valuation service. The insurance company I was dealing with used one the 3rd party companies and they used a proprietary search engine to find 10 comparable cars for sale in the local area. They deducted 10% for "typical negotiated sale price" and took the average of the 10 to determine the value. It looked like their search engine keyed on the year, make, model, and the words excellent and condition. Any ads that met the criteria were captured and used, even if the ad stated "rough" condition it would be "excellent" if I could sell it this week. Florida law requires them to provide the details of how they arrived at the valuations so the insurance company provided me the report which showed all of the ads they used. I contacted every single one of them and got statements as to the true condition of the car and used that to get them pulled from the comparables list. I also searched my self and cherry picked every high end cost comparable I could find and flooded their inbox. Eventually they dropped almost all of theirs and used most of mine to arrive at the value we settled on. It was far more work than should have been required, particularly since I wasn't the at fault driver, but it paid off.
 

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Insane in the membrane!
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Discussion Starter · #13 ·
Ya for sure, my friend from Florida said its illegal to have car insurance in Florida, what the hell was he talking about?
 

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Eventually they dropped almost all of theirs and used most of mine to arrive at the value we settled on. It was far more work than should have been required, particularly since I wasn't the at fault driver, but it paid off.
So that entire valuation process and comparable shopping only took place after the accident, after your vehicle was "totaled" I assume? Sorry to hear about that but glad you were able to convince them of a more reasonable value. Were you dealing with your insurance provider or the insurance of the at fault driver?
 

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Yes, that was after they took 4 weeks to determine the car was totaled. It was the at fault driver's insurance company. Contrary to their advertising, they are not a "good neighbor" when it comes to car insurance in Florida. I had the option of going through either mine or theirs, but if I went through mine I would have fronted the deductible and my insurance company would have attempted to collect from the other company. They typically try pretty hard to collect their part, but since the deductible doesn't benefit them in any way they don't always push very hard to collect that....
 

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My two cents: Minimum coverage or liability is based entirely on the actuary tables where you, and your covered drivers, are at fault, and the likelihood you will cause an accident. Minimum coverage is all about the people driving the cars.

Comprehensive coverage, in all of its variations, takes all of the minimal considerations in effect as well as the restoration value of the car you drive.
 

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I Am The Machine
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There's no way to compare policies between you and your dad with the tiny amount of information you listed there. You'd need to compare line by line. Is the $110 you pay for ONLY the E36?

I'm at about $290/month with State Farm.

My policies:
Text Font Product Line Screenshot


ALL the vehicles have 250/500/100k liability and 250/500/100k uninsured motorist, as well as 10k medpay coverage.

The E38 and Lexus both have $1000 collision deductible, $250 comprehensive deductible, $50 per diem rental car. The E36 gets basic rental coverage. The E34 and both bikes are liability only.

Homeowners is about 300k of coverage with a $1000 flat deductible. Also have a $1m umbrella.

I'm 23 and my wife is 24. We're the only 2 drivers in the household. She has a spotless record, mine is peppered with tickets. Neither have any at-fault accidents, DUIs, or anything else. We live in NorCal.
 

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I'm paying $60 a month for the minimum insurance I can legally get away with in the state of Florida. 1998 740i, one adult driver, two speeding tickets.

Shop around. It does not cost anything other than your time to get a quote. Get a quote from every insurance company you can find, then pick one that at least takes you to a movie before screwing you.
 

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I Am The Machine
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I'm paying $60 a month for the minimum insurance I can legally get away with in the state of Florida. 1998 740i, one adult driver, two speeding tickets.

Shop around. It does not cost anything other than your time to get a quote. Get a quote from every insurance company you can find, then pick one that at least takes you to a movie before screwing you.
:tsk:

The minimum insurance is NOT good enough for ANYONE.

What happens when something happens, in the blink of an eye, and you accidentally cause someone to have $80k in medical bills? Can you pay for that? Is it right for the other person to be on the hook for it?
 
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