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But I know what you mean about insurance companies looking for a way to weasel out of a claim. I've been saying this for years, "you're own insurance company will screw you over more than the guy that hit you"
We were traveling below the speed limit and a lady pulls out from the stop sign @ an intersecting side road into our lane of traffic. My husband reacted quickly and slowed as much as he could, avoiding driver door collision on her vehicle. We did hit her rear driver panel and she proceeded across the road to hit the car stopped at the stop sign on the opposite side of the main road.
She got out of her vehicle and said to everyone around that she didn't realize the main road didn't have stop signs, admitting fault. The police station was right there and there was an instant response. She admitted fault, they did their investigation and arrested her (gave her tickets with court date). The investigating officer said that it was unavoidable for us and the other vehicle, our rate of speed and reaction was appropriate. I have a police report that reflects fault and leaves no question.
Hence, my question. The at fault driver's insurance company is Liberty Mutual. The instant that I talked with the claim's adjuster, she was rude and very nasty. She refused to admit for almost a week that the insured was actually insured by their company, she said they had to investigate that. My Mom worked for a major insurance co and I know that it is simply stroking a few keys on the computer keyboard to find out if the driver is insured with your company. We had two estimates done, both reflecting damage right at $1700. They sent their appraiser down and he came up with $1553.96.
Yesterday they called and said "You agreed to $1320.86?" I had no idea what they were talking about, we had never heard of this figure. She explained that they determined that their driver was on 85% at fault. I supplied them with a police report, I drove an hour and a half over to IL to get it b/c she said it could take 3 weeks for them to get it. I told her to look at it and tell me who was clearly at fault. Where it stated the arrested parties for the incident, we didn't have a 15% ticket. The had a meeting and agreed we had some liability. Clearly traffic laws do not allow for their decision, my father is Highway Patrol and said that this is an uneducated statement on their part with no basis. We were observing ALL traffic laws when their insured illegally pulled out into oncoming traffic. My husband actually avoided the incident of bodily injury claims and further auto damage with his quick reactions.
I feel like they are trying to really shaft us, we are not in any way at fault and need this to be wrapped up. As it is, I am going to need a van to drive while mine is being repaired and we also have a trip planned that we will need a van for as I don't feel comfortable driving mine until the repairs are done. I do know that if I seek and atty I can get this paid for as well as my legal fees, which will exceed the amount that they are trying to cheat us out of.
The other party involved went straight to an atty and didn't even deal with the insurance company.
My question to you I guess is this, how should I proceed?
We are already taking a loss on repairs w/ the difference of our local estimates and their appraiser's value and I don't think that this is fair. It will still cost us this amount to get it fixed where we live and more if we took it to the city. Since it is under $2000 should I contact the driver to see if she just wants to settle it?
Thanks
I would send a letter to the other ins. company DEMANDING full payment according to the estimates you received. I'd even go as far as having the repairs done and pay them myself, expecting in no uncertain terms to be paid in full by the other ins. company. You are not obligated to use their body shops.
Good luck, let us know how you make out.
Here is a copy of the letter that I sent to the claims adjuster, hopefully she will understand that we are firm in our stance and well within our rights to remain that way.
XXXXX
Liberty Mutual Insurance
1811 Centre Point Circle
Naperville, IL 60563
Dear Ms. XXXXXXi:
I am writing in regards to claim number 5916392-01 against your insured driver, XXXXX Steele that revolves around an automobile accident that took place on 05/14/05 in Belleville, IL.
I have previously sent you a copy of the police report that clearly defines fault being that of your insured driver, based upon Illinois statutes. The accident was investigated by competent law enforcement officers and fault was determined to be 100% that of your insured driver, XXXXXXX. Steele. Ms. Steele got out of her vehicle and immediately stated that she “thought” that traffic on West Washington had a stop sign, clearly not observing traffic signs or laws. Traffic traveling on West Washington has no stop sign at the intersection of South 2nd where Ms. Steele was located yet she proceeded into traffic causing impact with our vehicle. Kurt XXXXX was observing all traffic laws and proceeding east on West Washington in a law abiding manner when Ms. Steele pulled out into his lane of traffic. Kurt reacted quickly and applied his brakes thus preventing a more severe collision with Ms. Steele’s vehicle that had illegally entered the lane of oncoming traffic. Kurt’s quick reaction time and avoidance of a more serious collision prevented the occurrence of bodily injury to all parties as well as more extensive damage. As proved by police investigation, statements made by the XXXXX Steele, the arrested party and witness statements that are on file with the Belleville, IL police department the fault of the accident lies 100% with Ms. Steele, your insured driver.
In speaking with the driver of the vehicle that Ms. Steele then proceeded to hit, I have learned that they immediately contacted an attorney to handle their damages and claims, choosing to bypass your company, Liberty Mutual. If we are forced to hire an attorney to handle this case and obtain a settlement, I am assured that with fault being so clearly defined in accordance with the laws of Illinois, we will be able to seek damages for not only the repair of our automobile but the attorney and court costs that may be incurred while seeking settlement and any rental vehicle that we must obtain for trips that we have had planned while waiting on your company to take care of it’s obligation. These costs and fees would greatly exceed the 15% liability figure your company is trying to say we are responsible for. There is no real basis legally for the 15% liability claim that you have assigned us, I have been assured that should this reach litigation, that this would not be a question.
The estimates by our local repair centers included replacement of two tires in which your appraiser didn’t feel replacement was warranted, although the damage was incurred during this incident. We are willing to concede to this and will accept the appraised value of $1553.96 as determined by your appraiser.
This should have been settled quickly and efficiently, I went so far as to drive an hour and a half to Belleville, IL to obtain a copy of the police report, complete expense absorbed myself, so that this process could be handled professionally and in a timely manner.
We will expect full payment of $1553.96, payable to XXXXX within 7 business days. We have a right within the law for our vehicle “to be made whole” again, restoring it to its proper use and value. The check may be mailed to the following address: XXXXXX
We will appreciate your prompt attention in settling this claim. I will be forwarding a printed copy of this letter and the police report to the main offices of Liberty Mutual auto insurance in hopes that this can be taken care of.
'11 GMC Sierra 1500; '98 Alfa 156 2.0TS; '08 Maser QP; '67 Coronet R/T; '13 Fiat 500c; '20 S90 T6; '22 MB Sprinter 2500 4x4 diesel; '97 Suzuki R Wagon; '96 Opel Astra; '11 Mini Cooper S
'11 GMC Sierra 1500; '98 Alfa 156 2.0TS; '08 Maser QP; '67 Coronet R/T; '13 Fiat 500c; '20 S90 T6; '22 MB Sprinter 2500 4x4 diesel; '97 Suzuki R Wagon; '96 Opel Astra; '11 Mini Cooper S
My insurance premiums have stayed steady for the last 3 years, however it seems like they should go down as the car gets older...right? It stands to reason that a car would be less to repair/replace as it ages, so a reduction in premiums should be in order, wouldn't you think?
Thoughts?
But, rates are ever-evolving, based on factors like loss experience. Since Acuras like the RSX are popular targets for car thieves, an age discount in a particular year may be offset by an increase in rates due to loss experience. Parts and labor costs also tend to go up.
This also depends on your particular insurance company.
It was around 6:50pm, traffic everywhere, we were going about 5mph, i pulled over and park the car in a parking lot, that girl got off her car and started crying and telling me how sorry she was, she is a new driver, she doenst know wuts going on, and she admit it was her fault. I called police and we exchanged our info, later her family came, asking me to have this settle privately, or the girl's insurance will go up for the next 3 years. I saw the girl crying like theres no tomorrow, and so I said ok, fine,but I still want a police report tho. soon the police was here, he asked if we already exchange info, I told him yes, and he said then theres no need for a police report, I requested for one, but he said (with a very bad attitude) he knows wut he is doing, dont tell him wut to do (I was only asking for a report to secure myself), but he said since we already agree on each other and exchange info, theres no need for a report, and he didnt even know we're not going thru insurnace. Anyway, I filed a complain to his commander.
so I took my car to 3 bodyshop for estimate, all the figures came out to be around $3000, and was told there might be some hidden damages. So I called the girl, and she said her father will be handling this for her. Before the girl's father knows how bad teh damage was, he already said "$3000 is too much, theres no way it can be that much" and tehn he said either I get my car repair in his bodyshop ( and he will pay for teh car rental while my car is in repair) or we will have to go thru insurance, and if we are going thru insurance, he will sue me ... .. .............
The father said the reasion why he will sue me if I'm going thru insurance is to waste my time, plus, theres no witness or police report, his daughter can say wutever she wants on court, he doenst care if he lost the case, waste my time is worth it. so I called my insurnace and report the accident, my ins. told me if they are goign to sue me, they will have an attorney to defend me, I'll have nothign to worry about.
Right now my concern is, can I make the other party's insurance to pay for my car rental while my car is in the bodyshop? I know that girl has liability only, and her ins is a small auto insurance company, so I dont know if teh rental will be cover.
your reply will be very much appreciate, thank you !
If I were in your shoes, here's what I'd do.
- Do not bother to call the other party, waste of your time and he's totally unreasonable.
- Contact your insurance company and their insurance company and notify them what happenned. Tell both companies you are claiming this on your collision. If you have rental coverage on your policy, then you're covered for 30 days. I know you shouldn't have to do it this way, but sometimes life just sucks, thank God no one was hurt and it's only about $3K.
Good luck, keep us posted.
PS....And make sure you tell both insurance companies about the cop not wanting to write a report. They'll know what to do to have him hung by his you know what. He should be fired!!!
And, yes, if her insurance winds up being liable, your rental will be covered.
Unfortunately, the way it works now is, if you want to get your car repaired ASAP, you have to pay your deductible and let your insurance pay for everything, then they will try to get their money back (along with your deductible) from the offending party's insurance.
I would have some choice words for that family, if this happened to me ... but not until after its settled. You should have no further contact with them until its all over.
Good luck.
'11 GMC Sierra 1500; '98 Alfa 156 2.0TS; '08 Maser QP; '67 Coronet R/T; '13 Fiat 500c; '20 S90 T6; '22 MB Sprinter 2500 4x4 diesel; '97 Suzuki R Wagon; '96 Opel Astra; '11 Mini Cooper S
It's not a matter of being hard-hearted. You have to protect yourself from jerks like this.
(not the ones that run their ads at 3am) that will not kill me to bad since I unfortantly fall
into the high risk catagory.I got a DUI seven months ago. I have no speeding tickets
in the last 3 years, and I have never filed an insurance claim (i have been driving for
24 years) .I am looking to buy or lease a new Nissan Maxima.Any Suggestions?
Thanks....Paul
If you need to finance your next car, make sure the finance company will accept a high deductible i.e. $1,000 on Collision and $500 on Comprehensive. Usually there is a three year period including the filing of an SR22 before you can expect a big rate break. You may find the costs dictate you buy an inexpensive vehicle, requiring only Liability, PIP, & UM for the next three years. Hopefully you are an American citizen who is employed. Not knowing your residence, the foregoing is not very specific, so Good Luck.
I feel for you. 24 years without a claim *should* mean something in risk assessment, but presumably, you'll get nailed for the DUI. Pfui. The fact that you're shopping 7 months later must mean you were a touch over the limit rather than falling-down drunk.
Not that it helps you, but in Germany -- at least 15 years ago when I lived there -- the only thing that counted in determining your risk factor was claim history. Tickets, DUI, accidents -- so long as they didn't have to pay out, your rates kept going down.
And I mean down; the difference between a new driver and one with a 30-year clean record is a factor of 5 or so.
None of this is of any help, but I felt like writing it. One suggestion I have for you to consider is this: Depending on your needs, get a $6k Taurus. If you drive lots, get a 2002 with 40k; if you're more in the 8k/year category, get a 2004 with 90k. Do this for awhile -- it's no fun, but it's not actually painfull -- and self-insure. That way, you don't get punished for a minor infraction with thousands of dollars in insurance premiums -- and then you won't dare use the super-expensive insurance because they'll pay your claim and throw you out.
If you have to have the Maxima, do not lease. And do not become upside down on the loan without cash reserves. You need to be flexible, and quickly. One minor accident or other infraction, and you could find yourself with a car you can't get rid of and insurance payments you can't afford. I'll let the professionals comment on this, but I think that another mark against you could make things very bad.
-Mathias
They made a left turn on a green light -but not quick enough- as i was going through intersection - i clearly had the right of way. The accident, witnessed by a policeman on bicycle, then the information taken down by passing patrol policeman - i have their names and telephone. Both said they would testify for me. Patrol policeman asked her if it was a green light and she said yes-that's why he said he would testify.
THE PROBLEM- I found out I did not have insurance-so they say
i had proof of insurance from ins. company i thought i had insurance because i thought i paid my auto insurance by phone - i have a proof of insurance form saying i was covered,
but the insurance company says i was not covered. i can't find proof of payment even though i have that little card-
WILL their insurance company (Farmers-they say the party did not report accident) still pay for the damages?PLEASE HELP! This happened 4/15 and costs are mounting- the storage charges from the towing company and the lawyer who I hired- (who hasn't accomplished anything) are piling up!!!what should i do? my CAR IS JAGUAR 1994 - engine not damamged but $6000 apprx. in body damage? I still owe on the car on top of this!!
BTW, that little card is often issued for a full year, but you are responsible for making your quarterly payments...if payment is not made, just because the card is good until Dec 2005 does not mean your policy is in effect until Dec 2005 w/o current payments...that all applies to your policy
If Farmers assumes liability, they will pay for everything as required, but the problem is that while they examine the case, your costs mount until they cut a check...if the witnesses saw what happened, I assume they will accept liability...
As far as your lawyer doing nothing...we usually do not represent you for property damage, rental car, and the like, just bodily injury...since we do not get paid a portion of your vehicle damage, that portion is left up to you to handle...I only represent folks for the injury, if they have difficulty with the adjuster for repairs, I send them to the state ins commissioner and the office of consumer affairs...I will assume your lawyer is doing the same thing...
Since you have an atty working for you, your best bet, to me, is to contact your state insurance commissioner and state office of consumer fraud...sometimes if these organizations have teeth, they can make ins companies move...
Here in GA, the police reports are not always accepted as gospel, cops often make mistakes...they will often want to talk with their insured to find out their version of the story, THEN look at the vehicles to see if their story makes sense...I wish there was alaw that forced them to do it within, say, 3 days, but no...so, sometimes the adjuster needs a week or more to get out and see the cars, or the guy that hit you goes away for vacation, or had changed his phone number from the one he gave the ins 6 months ago when he bought the policy, so now the ins cannot call him, they have to mail him something and wait for him to contact them...as long as his premiums are paid on time, he is not cancelled, and he may not call them for a month or more, knowing he can stall the procedure by just waiting...
From here on, until the day I die, and then three days beyond that, I will ALWAYS buy auto insurance that includes medical payments coverage of a minimum limit of $50,000 (costing maybe $3-5 monthly), rental car insurance (costing no more than $2 monthly), and uninsured motorist insurance, called UM (more expensive, but if you have a wreck with an uninsured person, you will deeply regret not investing the money in premiums)
Comprehensive (fire, theft and vandalism) and collision MUST be purchased if your car is not fully paid for, and SHOULD be purchased if your car is paid for but you are unable to replace the full cost of the car in the event it is totalled, burned up or stolen...usually the premiums are worth the cost...
Comp and collision on a paid off car should be balanced against the cost of premium and deductible...
Med pay, rental insurance, and uninsured motorist, to me, are MANDATORY considering their low cost and the cost of doctor bills, and renting a car without the coverages...UM will cover collision repair (less deductible) if you are struck by an uninsured motorist and will also cover pain and suffering from injuries...
I am also amazed at the number of folks who say "I don't need pain and suffering, I am not that kind of person:, yet, when their back or shoulder is killing them for two months, treatment bills hit $2-5,000, suddenly the thought of the other guy walking away without pain just riles them up, and "want what they got coming to them...doesn't the law allow compensation to the injured?"...if they had half a brain, they would look ahead and buy the necessary insurance, but they just gotta prove how much money they can save...correctly, it is all worthless if one NEVER has a wreck, but why do you think they call them accidents???...even a great driver can hit a patch of ice or suffer brake failure or hydroplane...why would ANYONE not cover themselves for the possibility???...is it sheer stupidity, or what?
And medical costs are covered by usual medical insurance, if auto insurance does not include the component, or it is very low, like $1,000?
UM/UIM covers liability of uninsured, underinsured, and hit-and-run motorists who hit the insured? Including liability for material damage, medical costs, lost income/wages, and pain and suffering?
Thanks
I drive a 97 F150 4x4 with 150,000 miles in good condition(except for miles!). When I realized she was going to hit me I hit the gas and so instead of her hitting me on my driver side door, she ended up hitting me on my driver side box panel behind my rear tire, with her 84 Chevy Caprice (aka future demo derby car!) She then proceeded to take off. I followed her and got her plates.
I went straight to the police and he told me that he knew her and "she's a hazard and shouldn't be driving". He assured me he would go find her and get it straightened out. By the time they got there it was 4 hours later and she was drunk. Was she when she hit me??? Probably. Can they do anything about it?? No. She is getting a ticket for the accident, but whether or not she will even get cited for Hit and Run????
First Issue: She needs to have her license taken. If I would have been a child crossing the street, she would have probably killed me and wouldn't even have stopped. She's dangerous.
Second Issue: The police gave me her insurance info and I've already contacted them. Grinnell Mutual is her company. I want to keep my company out of it if at all possible. (Just switched companies and got lower rates!)
Her agent asked about the accident, took one picture of the crack in the fiberglass and told me to go get two estimates and bring them to him.
The damage is surprisingly minimal. There is a 8-10" split in the fiberglass. There are deep scratches in the paint starting behind and below the door all the way down the side. The step side pad needs replaced. Mud flap replaced. Pad on bumper needs replaced. Two tone paint, stripe down middle. Some dings in the bumper. She also hit my tire pretty hard (left mark on tire). Three weeks ago I got 4 new tires, re-aligned, balanced, ect. So I know all problems are accident related. My pickup shakes when going over 45mph. I've been told since she hit pretty hard (enough to move the back end of my truck over about 2-3 feet) I should get that tire replaced because there could be belts that are unstable now.
I have now had 5 estimates and not a single one is close to the same. $500, $900, $1500, $1800, & $2300. I'm also completely irritated. I've missed 2 days of work trying to get this straightened out, I'm getting angry because in one breath a body shop tells me they won't patch anything and they will replace it, then they get the insurance company's name and in the next breath they tell me they "can't justify a new box panel and that they will patch it." First of all, there was no crack before she hit me, no matter how small the crack is, shouldn't they replace it. (I've had bad experience with patching). 2nd of all, how can they totally change their tune after determining the company. Sounds pretty crooked to me.
The rest of all this is that the highest estimate is from a very reputable shop whom I've done business with before. They do things by the book and are more expensive than some. So I'm debating if I should fix it or not, thinking about trading soon and with the high miles, I've been told it's not going to make much difference (by dealership). So how do I go about this? First to make sure she's not driving ever again. And also is it okay to not get this fixed but use the insurance check to later put towards a new truck? If I can, how do I explain the difference in estimates, or do I need to go find one closer to the one I recieved?
My thought, but you will not do it...if your new ins will replace it, then use them (you were not at fault, should not penalize you) to pay for replacement (subject to deductible) and then THEY will go after the other company at THEIR expense to recover what they paid plus your deductible...but it means involving your new company with the lower rates...it is your call...
Collision insurance pays to fix the damage on your car, regardless of who is at fault...if you are at fault, you pay your deductible and they fix your car...and, if you read past posts, you also purchased rental car ins for $15 yearly, so you have a rental car for up to 30 days while they fix your car...if you are not at fault, but the other carrier is slow to act for whatever reason (numerous reasons have been cited on these posts), you can still use your collision to fix your car, still subject to decuctible, but your ins will then pursue the other company and get it paid, including your deductible, which is then refunded to you...also, once the other company assumes liability, they should then reimburse you for your rental car, whether you paid cash or used your rental car policy, which, in case you do not know, costs about $15 per year...do I hear an echo???...where did our emoticons disappear to, they do not show on my screen anymore...
If you are struck by an uninsuted motorist, if you have U/M, you may have dual coverage...both your collision coverage, and the PD (property damage) portion of your U/M policy will pay for your repairs, either one subject to deductible...so one might think that U/M is not necessary, but that is not true...the difference is that U/M also has a bodily injury component that will compensate you for the pain and suffering from the injuries you may suffer from the negligence of the uninsured driver...you cannot separate the bodily injury component from U/M, as it is sold just like your liability coverage, say U/M limits of 100/300/50, translated meaning $100K injury for one person, $300K per accident, and $50K coverage for property damage...if your car is paid off, and worth less than $3,000, collision and comp may not be worthwhile, but UM should always be bought because you can be seriously injured by an uninsured driver regardless of the value of your vehicle.
Problem 1: your health insurance covers you and your family only...how would you feel if you caused a wreck, and my wife and three kids and my mother were in the 2nd and 3rd row of seats in your minivan, and we all suffered injuries...better yet, make it YOUR brother, mother, and three nephews, all injured...medpay will pay for all of us, no deductible, coverage for any doctor...would you feel right taking your family in under your health insurance, but leaving your brother, mother and nephews to fend for themselves???...you would do that to them, when you can have that kind of coverage for an average of $5-6 dollars a month, maybe 25 CENTS per day???...can you see why I will not accept the reasoning that someone will SAVE pennies just because they have group insurance thru work???
Problem 2: Most group policies have deductibles, and if no deductible, a copay of $10-20 per visit...whether you go to physical therapy, chiropractor, osteopath, MD or whatever, your group ins may only allow 15 visits, but what if you need 25 visits for your injury???...those extra 10 visits will be cash, between $500-$1000 average (total, not per visit, I assume 10 visits at $50-100 per visit) which would have been paid in full by medpay...so you saved $75 per year and spent over $500 for your injuries...we have not even calculated in if the same thing happens to your spouse or teenage son, all covered by group ins and each subject to copay per visit...now you could spend thousands out of pocket, all because you "saved money" by skipping medpay, because your auto ins agent said "who needs medpay, you have group ins"...do not fall for that logic and do not be that cheap or stupid, and I do mean stupid, as there is NO argument that can beat the cheap price of medpay and the coverage you get for your money...
Problem 3: you have an HMO with no deductible and no copay...you may still only have 15 visits to the therapist or chiropractor, but you need 25...by the time you appeal it, it could take months...also, you may want to go to Dr. X, but HMO limits you to certain doctors only...same problem as #2 above...
Problem 4: hopefully never happens, but I have seen it...if your income drops or you lose your job, health insurance may be cancelled, so you will not have routine coverage...but, even if unemployed, if you can still afford to keep your car insured, the $5 monthly for medpay will at least cover you (and your mother, and me, and your brother, and your nephews, and the neighbors kids) in the event of a TRAUMATIC injury, the one that could most likely cost you major treatment or hospitalization bills from the accident...usually the cost of accident treatment is much more than a twice yearly visit for flu, cold, mild ache, etc...so the injury most likely to disable you, a car wreck, is at least covered, in full, no deductible, no copay, for up to $50-100K if you bought that much, and for oh, so little money...health insurance may cost $4000-7000 yearly premium, medpay costs under a dollar every 4-5 DAYS...
Forgive me, but there is no human on the planet who has any chance of giving me a logical argument against having medpay...if it cost $300-500 yearly, I would concede that is expensive...but for 20-25 CENTS PER DAY???...even the unemployed can afford that, if they can afford to keep the rest of the policy, that is no place to cut corners...
Bob
I will call my insurance company and will add medical insurance component and, probably, UIM too.
Without price list and I did not know this is so inexpensive. Looks as insurance company is not really interested in the extra business...
BTW, I remember only two cases when I or my wife had anybody but our family in our car. Once 7 years ago, the second time 6 years ago. Still makes sense to have the insurance.
That is why whenever I see an auto accident client w/o medpay, I take about 10 minutes to explain what I write here...they usually look at me shocked and say, "that is all it will cost me?"...yes
Then I ask them to go on a mini-crusade with me...just as I tell every client about medpay and its benefits, I ask them to tell everyone at church, at family reunions, and at neighborhood barbecues...if every person carried 50-100K in medpay, our hospitals would write off fewer services, and everyone in every wreck would receive needed care without burdening anyone...the only ones it won't help will be those folks who require life-saving treatment in excess of $100K, but even those would be helped, because if you received $250K in serious treatment and hospitalization, the hospital would be less likely to pursue you for payment if they received $100K from medpay, since that is all they would get from Medicare anyway...that would also help keep people out of bankruptcy...all this for $5-7 per month...now do you comprehend why I am such a PITA about medpay? Can you, as a rational human being, even in your wildest fantasies, think of ANY reason why a driver should not have it???...any???
Bob
But assume medpay has paid the $1,500 doctor bill...my fee is still $1,666, but now the client gets that money, so the client walks away with $3,334.00...they received the $1,500 that did not have to be paid for medicals...
Worst case scenario...even if your premium increased due to a claim, it would only be the MEDPAY PORTION that would increase...let's assume a whopping 15% increase...15% of $75 yearly is an additional $11-12 per year...now let's do the REAL math that no one will tell you except old Uncle Bob...
Your premium for medpay goes up $12 per year (and, in reality, it should not go up if you are not at fault)...in 20 years, that will add up to a total of $240.00 extra premium...but you have pocketed an extra $1,500 by having the medpay...see how this helps the injured client even more???...so before you go run off and say how the lawyers always benefit, this looks to me as a win-win for the client, since you all know that the lawyer will get theirs, anyway...but my fee does not change, because the gross settlement is the same, but the expenses to be paid have changed...
Further, go back to the assumption of the 7 people from the playoff game...just my simple example could put $1500 in everyones pocket, for a total of $10,500...all for medpay of $6 per month...
If the bills are higher, my example is even better for the client...I had a client who had $22,000 in doctor bills due to surgery from the wreck...not his fault...he had $100K in medpay, but it only paid out $22K for his bills...when we settled the case, as you might expect, I received my standard fee of 1/3...but he was able to put an extra $22,000 in his pocket since medpay paid his medical bills...$that's 22 thousand dollars, but be careful...his medpay premium may go up next year from $6 monthly to $8 monthly, costing him $96 yearly instead of $72 yearly...
Not that I wish harm on anybody, but the more serious you are injured, the better medpay works for you...which makes sense, as a simple neck injury may only be worth a few thousand, but if you break two legs or need hip replacement, obviously your pain and suffering is much more serious than the aforementioned neck pain...is there anything here that anybody does not understand???...is there anyone reading this who still believes that they do not need medpay???BTW, if you are in a "no-fault" state, you would have higher PIP coverage (personal injury protection) instead of medpay, which is in "fault" states like Georgia...
Uncle Bob
"If I carry collision insurance, wouldn't that cover my car if an U/I driver hits me?"
best, ez
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'98 Mustang, worth approx.$4500, driven by my 17 yr old with 2 accidents, the accident surcharge from State Farm on the 6 mo. policy is $562 which he is paying, deduct. is $250 for comp. and $1000 on collision. Comp. premium is $101 and for collision is $306. Since the vehicle is titled in my name, I have two other comp. claims in the past 3 yrs, which affect things too.
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I'm leaning towards cancelling the comp. & collision and would appreciate any suggestions.
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PS.....No parenting advice please.
I know there were a ton of questions in my post, but was just wondering about one more. I'm probably going to trade within the next 3 or 4 months. I'm already going to get a pretty bad trade-in value on the pickup, I was told that really the damage that is done won't make it go down much lower. Can I get the insurance $ and put it towards the new one in a few months instead of getting this fixed?
You retain your deductible which is.......................................1000
If the Stang is totaled, estimated salvage nets you 1000
$306 to insure a net value of $2500 is over a 12% rate.
Recommendation: Drop the collision, but be sure you have Uninsured Motorist Property Damage Liability. UMPD provides collision coverage to your vehicles when the adverse, at fault, party is uninsured.
Re: parenting advice = that's needed too.
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Keep in mind, I consider myself very distrustful of insurance companies. I'm in Florida and am sick to my stomach with what the insurance companies are doing with homewoner's insurance. But that discussion would be off topic for this forum.
It has been my belief that the purpose of insurance is to prevent the financial catastrophe, not cover maintence items. Thus, I recommend high deductibles and high limits of Liability.
Sorry about your experience with homeowners insurance, but remembering the weather hazards usual to the FL location, I'm not surprised by the industry having to charge higher rates. Has your crime rate increased significantly too? Many factors come to play in promulgating homeowner premiums and reinsurance treaties influence what companies can do as well.
Happy Fathers Day!!
Example: I was quoted auto insurance awhile back...with a $500 deductible on my comp and collision, the total premium was $700 yearly (yes, I always buy medpay (maximum amount), uninsured motorist, rental car, and towing...I certainly buy what I recommend you buy)...when I asked how much the premium dropped when I raised those deductible to $1000, the premium only dropped by $75 to $625...
Now, Divide that $500 difference (from $500 to $1000 deductible) by the $75 premium difference, and it would take 6.7 years for the premium difference to equal the difference in the deductible...if I had an accident in under 6 years, it is cheaper to pay a little more in premium for a lower deductible...if I go 7 years or more without an accident (actually 6.7 years), I will save money by choosing the higher deductible, as it will take that many years to recoup the higher deductible...I chose the lower deductible...
But, say the premium had dropped by $200 instead of $75...then it would only take 2.5 years to recoup the higher deductible (2.5 x $200 = $500 deductible difference)...then I would probably choose the lower deductible, since the payblac period would be under 3 years...just depends how it works for your budget...
A better example is health insurance, altho most folks cannot choose their own deductible if they are part of a group...I have seen people pay thousands extra just to have a $zero or $50 deductible, just so the insurance will pay for routine visits, exams, and such...to me, totally ridiculous...IMHO, health ins is where you see the greatest savings with higher deductibles...by raising the deductible from $50 to $500 or $1000, often I have seen premiums drop by MORE THAN $500 or $1000 yearly, literally watching the savings appear in under that same calendar year...if you are a sickly one who lives at the doctor's office 3-4 times a month, maybe the lower deductible is for you...but if you see the doc only a few times year and some years hardly at all, you can often save $1000s by insuring yourself for catastrohic injuries only, say a $1000, 2000 deductible or more, and just pay for routine care out of pocket, since some years you may have little or no out of pocket expense...and, if you miscalculate, the money saved in premiums will pay for your deductible and more...it is just how much risk and how much out of pocket you are willing to decide for yourself...having health ins that reimburses you after a mere $50 in expense, to me, is the owrst use of money I can think of, as the additional premium for the privilege of that $50 deductible is more exorbitant than you might imagine...you might pay an additional $1200 in premium to reduce your deductible from $1000 to $50, paying extra money to the ins just to have that virtual-first-dollar-coverage...poor use of $$$ to me, unles you can't go 10 days without seeing some doctor...IMHO
Bob