thinking ahead for the day it happens to me: one thing i'd do though is make sure they have at least 100 hours or more behind the wheel before going for their license. i did with my folks. city driving, country driving, highway driving, driving at night and in the rain, in the snow, and yes on ice in a standard.
the examiner commented on my experience. admittedly one thing we hadn't practiced was parallel parking. i'm still not the best parallel parker today, but when it comes to knowing when the car is within limits of controllability for the environment conditions, i'm good.
think about it, when do kids (knowingly) get the car? when it's great weather and perfectly clear skys and sunshiney probably.
and i'd probably have them enrolled in a safe driving class (your insurance may offer a discount when they take it). good for them to see and hear from the adults that messed up.
also - i'd seriously consider one of those hazard avoidance courses if there's one offered. it sounds like a quick way to burn some bucks, maybe even fun to put a car into a spin or under- over-steer condition and hit cones, but they need to learn to respect the vehicle and see what happens when they loose control and how easy it is to loose control.
i mean, i think there's nothing like having a "safe" mishap under very controlled conditions where someone can explain why the vehicle got loose. better that than the real thing.
i'd take away the car radio, and forbid use of a cell phone or MP3 unless they were stopped and out of the car. i'd not permit the use of the vehicle with any other teenagers or travel after dark unless i'm with them.
i wouldn't put them exclusively in a SUV. i'd get them to experience the different manuvering characteristics of the SUV vs. non-SUV, but only after some significant time behind the wheel so they could intellectualize what they were feeling differently about road feedback, steering response, etc.
i'd teach them the proper method of setting up the side view mirrors to limit their blind spot, and i'd instill in them good situation awareness checking behaviors.
now, in 10 years, ask me if I do all these things.
The auto insurance policy automatically covers all member residents of the household. No exclusions unless specifically so endorsed with your signature acknowledging such exclusion. As such your children are covered and you don't have to enable the insurance company to know about them. If the company asks, then you are obligated to tell.
Usually children under 18 years old are considered Minors and as such can not be owners of chattel property nor can they enter into contracts.
When there are two vehicles and four drivers in the family, two of whom are children, a vehicle will be shared with one or both of the parents and the rate of adding the part time youth is usually a lot higher than the amount of driving the youth will do.
Buy a $2,000,000 Umbrella remembering to include the vacation residence and yacht.
Driving is a privilege, not a Right. Therefore the privilege of driving is allowed according to the level of the children excercising their duties and obligations. One of their duties is to have a cumlative GPA of 3.5 based on a 4.0 system. Their high school education will include two years of a foreign language, four years of Math, and three years of Science. College is not an option, you will graduate from college/university without majoring in the easy courses just to get a degree in General Studies.
One of the obligations of the child is to make the parents proud of their accomplishments. The family name is a primary asset and they are obligated to honor it with exemplary behavior.
Michaell provided some great ideas in his/her post. To them I will add that what I did/am doing with my kids is put the car in their name at age 18 and they buy their own policy then. Another thing is to limit (geographically) where kids can drive - it's harder to do alot of damage in an area where the speed limit is 35.
Talk with your insurance agent and lawyer. The idea of stashing assets here strikes me as unnecessary but others may disagree. As someone else said, an umbrella should provide adequate protection.
Thanks all, I normally carry an umbrella policy. Last time I talked w/insurance agent, he wasn't real knowledgeable about recommending max amount. Said he'd sell whatever amount I wanted (of course). He didn't know of what a typical settlement might be if a terrible accident ever happened, so I feel like I'm flying in the dark here. Years ago $1M was a typical policy which I upped since, but I suspect that has increased still over the years. Perhaps I'll see if I can find a law firm to give me an idea what they target as a settlement.
Fortunately, the only damage that has befallen my 17 year old's New Beetle was some hail damage which was fully covered by the insurance company. The PDR shop did a truly excellent job on the repairs.
Here is the thing, I was involved in a car accident on 7/6..rear eneded by a 90 year old. Brought it into the body shop b>that his insurance told me to on 8/23...car ran fine, just cosmetic damages. They had the car for 4 weeks after we were told they had all the parts to do the repair. Got the car back and with in 3 hours the car was dead. Put a new battery in, died again. Changed fuses, died again. Obviously a dead short...now, after 3 mo's of my car not running (alternater is good) the repair shop that I brought it to says they believe it to be the front differension switch for the 4wd. They had to pull the dash to get a look at it...now they are talking 468.00 in repairs. I know that the accident did not make this happen, BUT, what I need to know is could the workmanship at the body shop have been at fault? All I know is that as of 7/6/06 my car was mint, no problems. And, now I am going to be shelling out $$$ for an accident that I was not a fault for! I'd like to have the man's insurance pay...if I can prove it was workmanship related...any advice?
I was in an accident on Monday. Unfortunately there was some damage to my 01 Civic. The insurance company called today and left a vm stating they were totalling my vehicle. I would like to understand if the price they are quoting is fair.
The article on Edmunds.com explains how to calculate this. It states the insurance company should include the cost of title, tax and license to purchase another vehicle, in their calculation. Do you know if the kelley blue book/edmunds.com private party value already takes the tax/title license fee into account? ie. if i would like to see if there price is fair, do i add the cost of tax onto the kbb value, or just compare their given value to the kbb value? appreciate any help! thank you
I have read through a few of your posts in the past months where you seem to strongly advocate for medpay....why do I need to carry this if I have health insurance coverage at work and high liability coverage? (as well as an umbrella policy) Would I not be sufficiently covered through my health plan and any passengers or adverse parties covered by my liability coverage???
What's the ramifications if you are driving a borrowed car and: 1. this car does not have insurance. 2. this car does not have enough insurance to cover the accident.
As the at-fault driver of the car above, what is your liability in the event of an accident? will your personal auto insurance step in to protect you from financial liability?
I had an at fault accident the first week of January. I'd had my driver's license for 3 weeks and made the stupid mistake of taking the car on the freeway in the pouring rain one morning where my inexperienced self certainly shouldn't have been. I was older when I got my license (got it 3 days before turning 26) but due to my inexperience and lack of previous coverage the policy was 940 for six months.
Anyway I rear-ended someone on the freeway due to misjudging my stopping space in the rain. Other car was stuck in traffic and not moving. My airbags did not deploy and my car took most of the damage. The person behind me called the state trooper who arranged to have both vehicles towed and wrote me a $150.00 ticket for "speed too fast for weather conditions" which I wrote a check for and paid a few days after the accident. The trooper did all the insurance exchange information for us as well. I had my mom pick me up from the accident scene and immedietely called my insurance company AIG. AIG took all the information for the other driver, removed my car from the tow yard within 5 hours and had it in one of the area's best body shops by afternoon.
From the beginning, my car was called 'borderline total" by my insurance and the tow yard. It's a 2006 Saturn Ion 2 sedan. Most of the damage the car suffered was body damage. There was no frame damage and mechanical damage was minimal. Actual damage cost in parts and repairs was around 5,000 but once labor costs, storage fees, allignment fees and taxes were added on, the total cost my insurance owed the body shop was 9200 dollars minus the 500 dollar deductible I had to pay so 8700. My insurance chose to repair the car anyway. As many options etc as the car had on it it still wasn't an overly pricy car. I'd paid 13,000 for the car when I'd bought it three weeks before wrecking it. I'm confused as to how they calculate damage percentage. Is it the actual damage to the car in parts to fix it or is the labor cost included in that percentage? The body shop man told me that AIG was only going to allow him to go up to 65% of the car's damage before totalling but I'm sure that 9200 is way more than 65%.
My insurance has been really awesome about the whole accident despite it being my fault. I'm sure there will be probably be an increase in my rates and AIG told me that it would probably be a 40% rate increase which would bring my premiums to 50 dollars more a month which I could handle. But I hear horror stories of people's rates doubling and tripling after an at fault accident so I'm not sure how much to trust what the insurance company is telling me about rate increases. My mom works in insurance and says 40% is pretty accurate but that I should shop around. I doubt anywhere else will insure me after the accident unless it's for a whole lot more than what AIG raises my rates to.
I picked the car up on Monday from the shop and amazingly it runs just as well if not better than pre-accident. The overall alignment on the car feels better. The only problem I've had was that the check engine light is on but the body shop is contacting somewhere to check it today for me and said it's probably a matter of needing the code checked and reset. I'm hoping that's all it is. Should I be panicking about the engine light being on?
Should I be expecting huge car problems down the road resulting from the accident? The car feels and looks better than it did before the accident but I've only had it back since Monday. I'm also still not sure why the car was repaired at all but it was and it's mine again after a month without it.
I had slowed down a lot by the time the impact happened. I don't know if that's why the airbags didn't go off or not. I really don't know why they didn't go off. I did not jerk forward and hit the steering wheel though. The only part of my body that hit my steering wheel was my left knee although it may have actually hit the dash.
I'm still confused about how they actually determine the damage percentage. The car itself had around $5,000 (4700 before taxes) worth of damage that needed fixed or replaced on it. This was using primarily OEM parts. The damage was not to the frame and very little of the damage was mechanical.
They paid the body shop another 4000 for labor costs, sales tax, cost to get the car aligned, storage fees for the two weeks the car sat in storage at the shop while the insurance made a decision on whether to fix it or not, the towing fees to get the car to the body shop from the tow yard and I'm sure there were other additional fees but I don't have my paperwork right next to me.
How is my insurance company calculating the percentage of damage done? Off the total price tag for all the labor costs, sales tax, towing and storage plus parts or on the price tag for replacing the car parts?
The insurance had told me they wouldn't repair the car if the damage was more than 65% of the cars worth. The total cost of $9200 is more than the 65% mark isn't it? This is why I'm confused.
I've had a lot of people tell me the car should have been totaled after seeing the final price tag but I really didn't have a say in what happened to my car as far as repairs or totaling it. I've had people tell me I should get a lawyer and fight my insurance company's decision to repair the car but the accident was my fault and I don't really feel it would have been right to complain about the decision the insurance made.
I absolutly strongly advocate high Medpay in fault states and high PIP in no-fault states, altho I am more familiar with Medpay (hereafter, MP) because GA is a fault state...
Remember, I am stating my opinion as an attorney who tries to recover "pain and suffering" damages for injured clients, so that viewpoint colors my thoughts, but I do believe that my thoughts are valid, even without settlements for pain and suffering...
1. Your health insurance only covers you and your family...what if I am sitting in the back of your car in the wreck, regardless of who is at fault???...your group health does not cover me (or your aunt, uncle, parents, friends, clients, etc.)...but your medpay will cover everybody in the car for injury care, regardless of your fault or the other guy...
2. Even if the other guy's liability insurance will eventually pay, it could take months before a settlement, and by then all the hospital and doctor bills have been sent to collections, ruining my credit...your medpay will pay bills within 10 days of being submitted, keeping me out of collections...
3. Even if group covers YOU and your family, your deductible and copays could add up to hundreds of dollars...yet, for $75 per YEAR (at least in GA) you could have $50K in MP that covers EVERYBODY in the car, no deductibles , no copays...if you, your spouse and two children all had deductibles and copays, you might even spend thousands of $$$, yet all would be covered from first dollar with MP...so, no out of pocket cost with MP
4. Group insurance may subrogate, meaning they want to be paid back out of your settlement for what they paid out for you...so, if you had $10K in medical bills, group paid out, say, $6,000, and you eventually settled from liability for $22K, your net to you (assuming 1/3 attorney fees) would be $8740 ($22,000 minus atty fee minus $6,000 payback to group)...if you had MP which usually does not subrogate, your net would be $14,740, obviously a $6,000 difference in your favor...why anyone would not want MP with that kind of potential payback is unfathomable to me, and all we are doing is spending under $100 yearly to offset the risk...
5. You may want to go to a doctor that is not on your group plan, so your group may offer zero coverage (HMO) or less coverage with higher deductibles and copays (PPO)...MP, at least in GA, covers "any willing provider"...if you have an HMO and want to see a chiro not on the list, you would wish very quickly that you had the MP...
6. Your high liability coverage with umbrella covers the other vehicle and your non-nuclear-family passengers if you are at fault, yes, but if the other guy is at fault, your high liability and umbrella does NOTHING for your passengers like me in the back seat...
7. MP has another advantage...some accidents have no one at fault, meaning, say, two people both ran a stop sign (or are accused of doing so), so if fault is split 50/50, here in GA, nobody's liability may end up paying, but at least MP will pay med bills regardless of fault, as long as there was a collision with injuries...
8. Your question on driving a borrowed car: I can only give what GA would do... a. if the car has no insurance, you will be covered by YOUR liability insurance if you are at fault... b. if the borrowed car in UNDERinsured (again, we assume you are driving and at fault), then his policy will pay out first, then your policy, if coverage amounts are greater than his, will pick up the rest...some states allow "stacking", adding one policy to another, but sometimes the rules are quirky...once again, if YOU have MP while driving the borrowed car and cause the wreck, your group will pay for your injuries but your MP will cover me and my wife in the back seat and it will cover you at no out of pocket cost...
9. If you are the at fault driver in a borrowed car, the sequence is this...first, the insurance of the car...if none, or not enough, then your insurance will kick in...
10. Frankly, there is not one argument against MP unless someone simply does not want it, but, consdering the cost of less than $100 yearly, there is no PRACTICAL downside at all, and the coverage it buys you is huge...I pay $72 yearly for $100K MP, so if I have six people in my car, I have up to $600,000.00 (6 x $100K) total coverage for me and my passengers, first dollar coverage, for six dollars a month...even with my own group insurance, I have a $20 copay, so a mere 4 visits to any doctor and I have paid out $80, which is $8 more than my yearly premium...if I need 20 visits at a chiro or PT, that is $400 in copays...if I need more than my alloted 20 visits that group pays, it will cost maybe in excess of $1000, and that is just me, what about the cost for my wife, we may now exceed a few thousand dollars, yet my MP pays it all w/o deductible or copays...
Forgive my insistence, but this is less than a no-brainer...anyone may decide not to buy MP, but there is no downside whatsoever, none...and anyone that says that $100 or even $200 per year is too much, then wait until those injuries, copays and deductibles come in, and then see if $100 or $200 per year was too much...
If you care about your passengers, there is only one decision...period...
We pay thousands for liability, collision, comprehensive, etc...another $100-200 for injury coverage is pennies in the wishing well for the coverage you get for you and your passengers, family or otherwise...
If you are going to insure against risk, this is the cheapest premium for the greatest possible payout...
Not to be morbid, but the payoff is greater the more serious the injuries...say you had $50K in medbills and the at-fault party had $100K liability policy...again, I assume an attorney at 1/3...if you have group that pays $35K on your $50K bill, and subrogates, your net settlement will be $100,000 minus $33,000 (atty fee) minus $35,000 payback equals $32,000 to you...
With MP, usually no subro, so $100,000 minus $33,000 atty fee equals $67,000, a gain of $35,000 all because you had MP instead of group ins...no brainer to me...
If you have no group, medpay is now more than necessary...$100,000 minus $33,000 atty fee minus $50,000 in meds nets you $17,000...with MP you now net $67,000, a gain of $50,000, all because you spent another $100-200 per year on MP...
If there is an argument against MP, I can't see it...now if MP cost $500 or $700 per year, there may be an argument against it, but still, when you have seen the serious wreck injuries like I have, even then it may be a bargain, because you are still insuring yourself against risk, and with all these folks driving putting on makeup and talking on cell phones, the risk of a serious wreck is high...
Statistically, the risk is low on any given day that one will be involved in a wreck, but for the one who WILL be involved, they will not know if the other vehicle is a VW Beetle or a loaded cement truck out of control with brake failure...having good medical coverage with MP just seems to be the right answer to the right problem...
Does that help at all???...have I answered the questions or do you have followups???...this is important to me, because of all the folks who have their credit ruined because they just buy the minimum required by law...if everyone had MP, they would all net more in their settlements, doctors would be paid timely, and the stress would be lessened by 95%...do you have any idea how much stress is added to the person who is in pain from the wreck, out of work, already falling behind due to no paycheck, and now the hospital is hounding them for payment of their $15,000 hospital bill, calling them every day for a payment schedule???...MP would solve at least THAT problem...
Whihc brings me to a point I had not previously thought of...even with group ins, if you are out of work, those $20 copays can really add up quickly, adding more stress...MP would solve that even for the person with group ins, adding even another rwason why the person with group should still have MP...
It is the cheapest bargain for the $$$, and yet so few know about it, yet they can spew out the stats for their favorite football team as tho those stats had any meaning in life...
A person I know was rear-ended by a semi on a city street while working. Her car was destroyed and she had about 13K in "specials" (medical bills and lost wages).
The insurer for the semi paid for the damage to her car promptly but refused to settle on the rest of her claim.
Eventually, she has to sue and the case was tried last month here in Ohio. Prior to the start of testimony the insurer finally makes an offer of $25,000. She dropped her demand to $40,000. Amazingly, the case went to a jury (3 day trial) over that $15,000 difference.
The jury returned a verdict for $75,000.
The greed and stupidity of insurance companies never ceases to amaze me.
I just did a quick estimate at progressive.com and for 4 vehicles, 4 drivers, the cost is $262/year for $10K of medpay coverage which is the maximum offerred. And here is how it's described on their website:
What is covered? Medical Payments coverage covers you if you are involved in an automobile accident and consequently incur medical or funeral expenses due to bodily injury sustained in an accident. This coverage also protects you and relatives who reside in your household while in other vehicles or if struck as a pedestrian. Certain exclusions may apply.
What does it pay? The limit that you select will be the most that will be paid to each person insured on your policy in one single accident. This coverage pays per person after all other coverages that may apply have been used regardless of fault.
Why do I need this? Many people buy this coverage to supplement their health insurance coverage. It is a very inexpensive supplement to your medical insurance when you are involved in an automobile accident.
Example You are involved in an accident where it has been determined that the total medical expenses for you and your passengers is in the amount of $55,000 dollars. The other driver was at fault and only had Bodily Injury coverage limits of $25,000 per person/$50,000 per accident. You did not have Uninsured / Underinsured Motorists coverage. You have selected a limit of $5,000. The insurance company of the at fault driver would only be liable to pay up to $25,000 per person injured but no more than $50,000 for this accident for you and your passengers medical expenses. Your Medical Payments coverage would pay up to $5,000 dollars for the remainder of your medical expenses.
Your coverage limits, deductibles, and certain exclusions may apply. Please read your Progressive Direct policy for details
(You must all be related, working for edmunds, as you all seem to have the last name of Host, and you even emphasize it in red...:):):):)...)
Your question depends on a few things...your own personal cash position, the cost of collision and the value of your cars, which you stated at $5K each...
In 2001, my 88 Prelude was worth about $3-4,000...not much, but my collision premium for a full year was only $200...so, to me it was worth the $200 in the event it was totalled, I would receive about $3k as a down paymt on the next vehicle...
If the premium was $500 yearly, I would have felt that I was simply insuring myself, and I would have dropped it...
The same applies to you...if the premium is, say, $400 per car or less yearly, it may pay to keep it another year or two...it it exceeds $600 or more per car, it may pay to drop it...
We play the odds...if you drop it on both cars, and they are BOTH totalled, stolen or burned up (highly unlikely, but some folks seem to have days like that, you know, if I didn't have bad luck I wouldn't have any luck at all), could you absorb the $10,000 loss of both cars and buy new/newer ones the next day???...if you can, drop the insurance, but if you can't, well...
And never forget Murphy's law...the day AFTER you drop the collision, one car will be stolen, never to be recovered, and the other one will be totalled by the runaway concrete truck at Interstate speed...make sure you have rental car insurance...
And, increase your medpay anyway...see recent, long winded previous post for information...long winded, yes, but hopefully informative...
cccompson...yes, it is amazing when the ins company will undergo a 3 day trial for $15K, and I am happy they lost...I also wonder if Progressive will remember that the legal fees they paid THEIR ATTYS for that loss may almost equal the amount of the award...if we are REALLY lucky, atty fees for the Plaintiff were added to their complaint, and, if awarded, could add another amount to the loss...I can appreciate ins companies defending frivolous claims, but sometimes they do make me wonder...esp if the car was destroyed and the offending vehicle was a semi...the physics of large mass of truck would certainly justify $13K in meds w/o any thoughts of fraud or frivolous litigation...
Yes, if the well doesn't go dry (seriously - two wells in the neighborhood here have gone dry in the last 2 months and the estimate to replace one is $30k. Wonder where I can get well insurance?).
hmmm, I'm paying ~$115 every year for collision for each car. The cars are barely worth replacing the timing belts on, you know? Guess I'll pay and shine the decision on another 6 months when I'll return to bug you again. :P
Another thing to consider is, would you even put in a claim if your car were totalled? Ins cos WILL raise your rates and possibly even drop you if/when you put in a claim. My son drives a 99 CRV with 130K miles, worth about $3K, comp & collision was about $200 a year, but with his less than stellar driving record and $1K deductible, I wouldn't bother filing a claim if it were totalled. He's already paying an accident surcharge, which would really sky rocket with another claim.
Steve: for $115 per car per year, I absolutely believe it is worth insuring both for another year, for a mere $230 total, esp if the payout per car would approach $5,000
Mikefm: Your post is good, but how about splitting the difference???...if the wreck is Steve's fault, maybe he would not make a claim due to his rates possibly rising...but if the wreck was the other guy's fault, and if he was uninsured (obviously, if he was insured, his liability would pay for the damages) then Steve could make a claim with less chance of rates going up as fault was not his...still worth $115 per car per year, IMO...that is just cheap insurance at that cost, and the possibility of a $5K payout, or even a $3K repair, is certainly warranted...
Heck, most guys will probably spend more than $115 simply on Valentine's Day, with chocolates, flowers, and dinner, just in the hope of...well...you know!!!...and most guys would think that $115 is rather inexpensive, if you catch my drift...and if you don't catch my drift, well, take two aspirin and call me in the morning...:):):):):)
To add to that: if the well ran dry, and mucho dinero must be spent to "fix" the well(s), then the $5K may not be there for vehicle replacement in the event of a total...seems to me to be another reason for spending the $115 per car, as available cash may be alloted to another priority in the family...
Unless Steve Host is in the same league as Ross Perot or Bill Gates...then everything I have said means nada...
Deductible = $500 Premium = $100 Salvage = $1000 Total $1600 you have, not buying collision so why spend $100 to insure a net $2400?
You are being very optimistic on the salvage value of a vehicle. Depending on what it is some are worth as little as $50 or as much as $500. Main reasons are how many are out there? Do they part out well? Are the parts interchangable to different years? Just food for thought, my little brother works for a salvage yard and he can peg a value of a vehicle to within a couple dollars of what the salvage yard owner will pay.
my numbers are not scientific, but if he suffered $3,000 damage to a $5,000 car ($5K is his stated value, not mine), at 60%, the car would not be totalled, it would be repaired...
If coming up with the 3 grand was difficult, esp after replacing a well, then the $115 per car is $$$ well spent...and raising the medpay is just smart sense regardless of whether or not he maintains collision insurance...the $$$ spent on MP would pay for the injury that he may not be able to afford to pay for, regardless of collision or the well...
Too many "regardlesses" if you ask me...:):):):):)
Thanks a million for your response to my medpay inquiry. I will have to revisit your post and consider it carefully and I may have follow up Q's later. I just wanted to post a thank you before too much time has passed. Traindriver
Well, It looks like I can buy Medpay in South Carolina with whopping coverage limits of $1000, 3000, or a max of $5000. That should about cover a chronic sinus infection from the dust stirred up from the airbag deployment. :sick: Anything more serious than this and I guess were back to fighting over the liability coverage. SC is such a progressive state always at the forefront of consumer protection. Oh well, much ado about nothing.
Regardless, I appreciate your input about medpay and the discussion about "borrowed" vehicle. It helps more than you realize, as the "borrowed" vehicles that I occasionally drive are in the metro Atlanta area. The fact that I am a SC licensed driver driving this "borrowed" vehicle (also licensed and insured in SC) wouldn't change your answers, would it? i.e. Georgia law would apply since the accident would occur in the state of Georgia despite the fact that all parties on my side are residents/licensed/insured in SC.
That depends (a classical answer from any attorney)...
I do know this: GA minimum limits for liability are 25K/50K...if another state has lower limits, say, 15K/25K, if that out of state driver causes an accident here, their insurance will actually cover up to 25K/50K because those are OUR minimum limits...
But I do not know how your insurance would cover YOUR passengers in your car if you caused the wreck here in GA, altho if someone else hit you, then their limits of their policy here in GA would cover you, as a GA driver with GA insurance would cover you regardless of any state you were from, as this is our home jurisdiction...
$5,000 medpay is better than nothing...is your state fault or no-fault???
Florida is getting ready to go to an at-fault state starting in October and State Farm is advertising a 16 percent decrease in rates for an average family. I'd like to know the recommendations from anyone in regards to what types of coverages to look at.
Well, MIke, not to sound like the broken record that I am (...:):):)...), but I suppose the answer depends on what value of vehicle you are insuring, as to whether or not it pays to have comp and collision...
Assuming (???) that FL has the same coverages as GA, I recommend maximum medpay, as you can be seriously injured, regardless of fault, in a $100 1972 Nova or a $100,000 2007 Merc S600, so medpay should be on every policy on every car you own...
Same for UM...if you ever need to recover pain and suffering from an uninsured motorist, does not matter if a 72 Nova or 07 S600, the coverage should be there for your protection...
Same for Rental car coverage...$20 per day for 30 days usually has a premium under $25 per year...
Towing might not hurt to have, unless you already have AAA...I have towing on my auto policy
Maximum basic liability, depending on company, can be $100K/300K or $250K/500K...that is if you have assets to protect...if you live under a bridge in a box, with no assets to worry about, get the minimum...
If you have assets, consider the $1 mil or 2 mil umbrella policy...check your company, as I had to buy an additional umbrella to raise my UM to $1 mil, but I already had the liability up to $1 mil (covers liability on my home and both cars)...some companies already cover the UM if you buy the umbrella and do not separate it, my company separates it...
Can't think of anything else, except please do not get into an accident...:):):):):)...
Maybe I worded my original post incorrectly, sorry. I've gone through the whole thought process on the different coverage types you went through. I guess I'm wondering if Florida changes to an at-fault state, is there any reason to go back through the whole thought process again.
OK, so I posted a redundant post...the "rules" (my overly redundant recommendations) do not change...well, I guess they could...the one assumption I am making is that the various insurance options offered in GA, a fault state, will be the same ones offered in FL after it becomes a fault state...I suppose they could offer something I never heard of, so my thought process could be wrong...
A few days ago I was involved in an accident. Thankfully I am ok. However, my '05 TL has significant damage. I am waiting for the repair estimate, but fear that the car will not be totaled given its pre-accident value ($32k per KBB). I am guessing that there is at least $10k in damage. This accident was not my fault and I simply want my like new '05 TL back, not a refurbished lemon. Any tips for dealing with the insurance company in this situation? The car shows frame and axle issues. If repaired, will the safety of the vehicle be affected?
You are now caught in that area called never-never land...you cannot demand they total your car, as to total the damage must exceed a set percentage of the car's value, 75%/80%/85%...$10K in damages is about 30% so all you can do is wait for them to fix your car and keep it or trade it after you get it back...while some states mandate you be paid "diminished value" (the amount you lose in trade due to having a wreck) most do not...
You will soon have your refurbished lemon back to love, cherish or dump...
I was coming home from work yesterday and hit a patch of black ice. Since I didn't have my 4 wheel drive on, my rear end kicked out from behind me and I ended up doing a 180 and sideswiping a large icey snow bank. At first I didn't think I did much damage, so I just turned around and went home. I didn't get out of the car because I figured if I slid, then someone behind me may do the same thing and therefore the safest option was to get out of the way. Anyway, when I got home, I realized I dented my front fender and the lower portions of my driver side doors. The car is fairly new and was in mint condition. Anyway, I'm sure the estimate is going to be about 1,000 bucks or so. I only have a 100 dollar deductible, but I don't want my insurance costs to skyrocket. What should I do and how much time do I have before I can't claim anymore. Again, nobody was hurt and there were no tickets issued.
a. You may be surprised at how much real $$$ damage you actually have. b. You're already paying to much with a $100 deductible. Increase your deductible to $500 or $1,000 and any increase should be offset by the lower rates. c. Go to a couple of body shops and ask for a FREE estimate and let them know your thoughts. It may also be a good idea to check with a used car lot (trade in with damage and trade in with repairs). d. Get all of this information ASAP as reporting the incident to the insurance (should you do what I would do) needs to be done while the roads are still slick. It won't do you any good to decide in July to report winter damage... e. Best of luck!
many body shops now charge anywhere from $10-25 for their estimate...if the body shop is reputable, go ahead and pay it...since they know you are shopping, it is quite reasonable for them to want small payment for taking their time to examine the vehicle...the fee is usually credited to the work if you hire them to do it...
Last Wednesday I got my wife an '04 FX35. 6 days later, Tuesday, while this vehicle was parked in a parking garage, another driver hit our parked vehicle while she was pulling in to park.
The other driver left a note that admitted fault, provided her insurance company, policy number, and her phone number. When my wife talked with her over the phone, the other driver was apologetic and cooperative.
I called my insurance company (USAA) Tuesday night and scheduled an appraisal for this afternoon at a local body shop. I was also referred to a claims adjustor who would be handling my situation. I have called her twice, Wednesday morning and this morning, and have yet to hear back from her. Is this normal? I don't intend to file a claim with my company since we are not at fault, but I am hoping to hear from my representative so she can advise my about my options and deal with the claims rep from 21st Century.
21st Century is another story. When their representative contacted my wife, she told him we are doing an appraisal too. He stated, "Oh, so you are going to file this with your own company?" His tone was slimy - as if he saw an escape. My wife stated, "No. Your driver was at fault, admits that fault, and you insure her. I wasn't even in my car. We are merely appraising to know all our options and play it safe."
Another 21st Century rep called again this morning, making the same assumption - that we are filing a claim with our insurance. My wife corrected him again - this time tersely and with annoyance.
Those are the facts of the situation so far. I live in California.
These are my questions:
Is it common for my own representative to never call me or return my calls, at least until she receives the appraisal? I am entitled to get a damage/repair estimate at the shop of my choosing, right? 21st Century can insist on their own appraisal, right? I am choosing the shop for the actual repairs, correct? 21st Century is supposed to provide us with a vehicle of similar value - not some trash econobox; my wife has people of consequence in her car regularly. Are these guys (21st Century) going to try to weasel off the hook at any opportunity? Oh wait, I think I already know the answer to that question. Can I insist on genuine Infiniti/Nissan parts since the car is still under warranty, has an extended warranty, and I do not want it voided in the future due to someone else's cost cutting decision? I keep reading about "diminished value." Does this pertain to my situation?
I want to thank any responders ahead of time; these are the questions I would normally ask my own representative, had she bothered to return my calls.
We have several members with insurance expertise, so I'll leave the questions for them to answer; however, it is inexcusable for your own representative to not return your calls. I was in an accident late at night last year (not my fault), and my insurance agent called me the next morning. Someone from that office should have responded.
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My daughter hit a tree and appears to have totaled our 2003 Honda CRV. Fortunately she was not hurt, except for her pride. How all indications from my local body shop are that the car is totaled. I'm now waiting for the adjuster (don't you love that phrase, because you know they basically only adjust down) or appraiser to give me the ACV. How can I determine what this ought to be? This is the first time that I have ever dealt with something like this so I am just a beginner in the shallow end. THe car was in OK shape, no dings just a few scratches, and has about 55k miles. Any help, guidance or advice will be really appreciated. Thanks
Claims people have their schedules continually reprioritized so they can be switched to more important claims as they occur. Claim Importance goes from death to serious injury to large property losses to fender benders. Not that your fender bender isn't important, it's just that during the work day an adjuster's attention is often diverted to a more critical matter.
The body shop you scheduled for an estimate assumes he will not get the repair work because your company "isn't on it". Therefore, an estimate from him is low on his priority.
If 21st Century sends their work to a certain shop while you prefer another, it would be in your best interest to take a pro active position and you take your car to your body shop, authorize the repair, & advise 21st Century where they can see the damaged vehicle.
When advising the Claims adjuster of your decision, you then inquire of which rental agency they prefer to rent a substitute motor car of consequences for you & have 21st Century commit to the "rent" of the car.
As the crash is not disputed, 21st Century will not weasel.
You should insist on genuine factory parts.
As for diminished value, it would help to know in dollars what the damage is. The less the damage the less the DV. The older the vehicle, the less the DV as well.
Being pro active with 21st Century, but not agressive should serve you well. Good Luck.
You are to do some personal research in determining the ACV of the CRV. Edmunds has an excellent appraisal worksheet and you can canvas the Honda dealers to see what a like kind and quality of CRV is going for remembering the asking price is higher than the "Sold" price. Two other "Guides" are NADA and Kelly used car value books. Good Luck.
Bob, I am very happy to hear that your daughter was not hurt. Near where we live, two high school girls have been killed when they drove their SUVs into trees. There are memorials at both sites and I see them every time we drive by.
Your daughter might want to look at the web site allie4ever.com .
Comments
thinking ahead for the day it happens to me: one thing i'd do though is make sure they have at least 100 hours or more behind the wheel before going for their license. i did with my folks. city driving, country driving, highway driving, driving at night and in the rain, in the snow, and yes on ice in a standard.
the examiner commented on my experience. admittedly one thing we hadn't practiced was parallel parking. i'm still not the best parallel parker today, but when it comes to knowing when the car is within limits of controllability for the environment conditions, i'm good.
think about it, when do kids (knowingly) get the car? when it's great weather and perfectly clear skys and sunshiney probably.
and i'd probably have them enrolled in a safe driving class (your insurance may offer a discount when they take it). good for them to see and hear from the adults that messed up.
also - i'd seriously consider one of those hazard avoidance courses if there's one offered. it sounds like a quick way to burn some bucks, maybe even fun to put a car into a spin or under- over-steer condition and hit cones, but they need to learn to respect the vehicle and see what happens when they loose control and how easy it is to loose control.
i mean, i think there's nothing like having a "safe" mishap under very controlled conditions where someone can explain why the vehicle got loose. better that than the real thing.
i'd take away the car radio, and forbid use of a cell phone or MP3 unless they were stopped and out of the car. i'd not permit the use of the vehicle with any other teenagers or travel after dark unless i'm with them.
i wouldn't put them exclusively in a SUV. i'd get them to experience the different manuvering characteristics of the SUV vs. non-SUV, but only after some significant time behind the wheel so they could intellectualize what they were feeling differently about road feedback, steering response, etc.
i'd teach them the proper method of setting up the side view mirrors to limit their blind spot, and i'd instill in them good situation awareness checking behaviors.
now, in 10 years, ask me if I do all these things.
Usually children under 18 years old are considered Minors and as such can not be owners of chattel property nor can they enter into contracts.
When there are two vehicles and four drivers in the family, two of whom are children, a vehicle will be shared with one or both of the parents and the rate of adding the part time youth is usually a lot higher than the amount of driving the youth will do.
Buy a $2,000,000 Umbrella remembering to include the vacation residence and yacht.
Driving is a privilege, not a Right. Therefore the privilege of driving is allowed according to the level of the children excercising their duties and obligations. One of their duties is to have a cumlative GPA of 3.5 based on a 4.0 system. Their high school education will include two years of a foreign language, four years of Math, and three years of Science. College is not an option, you will graduate from college/university without majoring in the easy courses just to get a degree in General Studies.
One of the obligations of the child is to make the parents
proud of their accomplishments. The family name is a primary asset and they are obligated to honor it with exemplary behavior.
Talk with your insurance agent and lawyer. The idea of stashing assets here strikes me as unnecessary but others may disagree. As someone else said, an umbrella should provide adequate protection.
I normally carry an umbrella policy. Last time I talked w/insurance agent, he wasn't real knowledgeable about recommending max amount. Said he'd sell whatever amount I wanted (of course). He didn't know of what a typical settlement might be if a terrible accident ever happened, so I feel like I'm flying in the dark here. Years ago $1M was a typical policy which I upped since, but I suspect that has increased still over the years. Perhaps I'll see if I can find a law firm to give me an idea what they target as a settlement.
I actually read about it in an article in the United Airlines flight magazine.
Unfortunately, we've had to use it once when my son went over a curb in our VW New Beetle and it needed some suspension and body work.
The article on Edmunds.com explains how to calculate this. It states the insurance company should include the cost of title, tax and license to purchase another vehicle, in their calculation. Do you know if the kelley blue book/edmunds.com private party value already takes the tax/title license fee into account? ie. if i would like to see if there price is fair, do i add the cost of tax onto the kbb value, or just compare their given value to the kbb value? appreciate any help! thank you
Do not rely solely on such guides in calculating the value of your vehicle and, to the extent that you do, use the retail value.
I have read through a few of your posts in the past months where you seem to strongly advocate for medpay....why do I need to carry this if I have health insurance coverage at work and high liability coverage? (as well as an umbrella policy) Would I not be sufficiently covered through my health plan and any passengers or adverse parties covered by my liability coverage???
What's the ramifications if you are driving a borrowed car and:
1. this car does not have insurance.
2. this car does not have enough insurance to cover the accident.
As the at-fault driver of the car above, what is your liability in the event of an accident? will your personal auto insurance step in to protect you from financial liability?
Thanks.
Anyway I rear-ended someone on the freeway due to misjudging my stopping space in the rain. Other car was stuck in traffic and not moving. My airbags did not deploy and my car took most of the damage. The person behind me called the state trooper who arranged to have both vehicles towed and wrote me a $150.00 ticket for "speed too fast for weather conditions" which I wrote a check for and paid a few days after the accident. The trooper did all the insurance exchange information for us as well. I had my mom pick me up from the accident scene and immedietely called my insurance company AIG. AIG took all the information for the other driver, removed my car from the tow yard within 5 hours and had it in one of the area's best body shops by afternoon.
From the beginning, my car was called 'borderline total" by my insurance and the tow yard. It's a 2006 Saturn Ion 2 sedan. Most of the damage the car suffered was body damage. There was no frame damage and mechanical damage was minimal. Actual damage cost in parts and repairs was around 5,000 but once labor costs, storage fees, allignment fees and taxes were added on, the total cost my insurance owed the body shop was 9200 dollars minus the 500 dollar deductible I had to pay so 8700. My insurance chose to repair the car anyway. As many options etc as the car had on it it still wasn't an overly pricy car. I'd paid 13,000 for the car when I'd bought it three weeks before wrecking it. I'm confused as to how they calculate damage percentage. Is it the actual damage to the car in parts to fix it or is the labor cost included in that percentage? The body shop man told me that AIG was only going to allow him to go up to 65% of the car's damage before totalling but I'm sure that 9200 is way more than 65%.
My insurance has been really awesome about the whole accident despite it being my fault. I'm sure there will be probably be an increase in my rates and AIG told me that it would probably be a 40% rate increase which would bring my premiums to 50 dollars more a month which I could handle. But I hear horror stories of people's rates doubling and tripling after an at fault accident so I'm not sure how much to trust what the insurance company is telling me about rate increases. My mom works in insurance and says 40% is pretty accurate but that I should shop around. I doubt anywhere else will insure me after the accident unless it's for a whole lot more than what AIG raises my rates to.
I picked the car up on Monday from the shop and amazingly it runs just as well if not better than pre-accident. The overall alignment on the car feels better. The only problem I've had was that the check engine light is on but the body shop is contacting somewhere to check it today for me and said it's probably a matter of needing the code checked and reset. I'm hoping that's all it is. Should I be panicking about the engine light being on?
Should I be expecting huge car problems down the road resulting from the accident? The car feels and looks better than it did before the accident but I've only had it back since Monday. I'm also still not sure why the car was repaired at all but it was and it's mine again after a month without it.
Only panic about the CEL if a reset doesn't cure it.
Big problems down the road? Don't know, probably not if it was fixed correctly.
IMHO, the car should have been declared a total loss though.
I'm still confused about how they actually determine the damage percentage. The car itself had around $5,000 (4700 before taxes) worth of damage that needed fixed or replaced on it. This was using primarily OEM parts. The damage was not to the frame and very little of the damage was mechanical.
They paid the body shop another 4000 for labor costs, sales tax, cost to get the car aligned, storage fees for the two weeks the car sat in storage at the shop while the insurance made a decision on whether to fix it or not, the towing fees to get the car to the body shop from the tow yard and I'm sure there were other additional fees but I don't have my paperwork right next to me.
How is my insurance company calculating the percentage of damage done? Off the total price tag for all the labor costs, sales tax, towing and storage plus parts or on the price tag for replacing the car parts?
The insurance had told me they wouldn't repair the car if the damage was more than 65% of the cars worth. The total cost of $9200 is more than the 65% mark isn't it? This is why I'm confused.
I've had a lot of people tell me the car should have been totaled after seeing the final price tag but I really didn't have a say in what happened to my car as far as repairs or totaling it. I've had people tell me I should get a lawyer and fight my insurance company's decision to repair the car but the accident was my fault and I don't really feel it would have been right to complain about the decision the insurance made.
Remember, I am stating my opinion as an attorney who tries to recover "pain and suffering" damages for injured clients, so that viewpoint colors my thoughts, but I do believe that my thoughts are valid, even without settlements for pain and suffering...
1. Your health insurance only covers you and your family...what if I am sitting in the back of your car in the wreck, regardless of who is at fault???...your group health does not cover me (or your aunt, uncle, parents, friends, clients, etc.)...but your medpay will cover everybody in the car for injury care, regardless of your fault or the other guy...
2. Even if the other guy's liability insurance will eventually pay, it could take months before a settlement, and by then all the hospital and doctor bills have been sent to collections, ruining my credit...your medpay will pay bills within 10 days of being submitted, keeping me out of collections...
3. Even if group covers YOU and your family, your deductible and copays could add up to hundreds of dollars...yet, for $75 per YEAR (at least in GA) you could have $50K in MP that covers EVERYBODY in the car, no deductibles , no copays...if you, your spouse and two children all had deductibles and copays, you might even spend thousands of $$$, yet all would be covered from first dollar with MP...so, no out of pocket cost with MP
4. Group insurance may subrogate, meaning they want to be paid back out of your settlement for what they paid out for you...so, if you had $10K in medical bills, group paid out, say, $6,000, and you eventually settled from liability for $22K, your net to you (assuming 1/3 attorney fees) would be $8740 ($22,000 minus atty fee minus $6,000 payback to group)...if you had MP which usually does not subrogate, your net would be $14,740, obviously a $6,000 difference in your favor...why anyone would not want MP with that kind of potential payback is unfathomable to me, and all we are doing is spending under $100 yearly to offset the risk...
5. You may want to go to a doctor that is not on your group plan, so your group may offer zero coverage (HMO) or less coverage with higher deductibles and copays (PPO)...MP, at least in GA, covers "any willing provider"...if you have an HMO and want to see a chiro not on the list, you would wish very quickly that you had the MP...
6. Your high liability coverage with umbrella covers the other vehicle and your non-nuclear-family passengers if you are at fault, yes, but if the other guy is at fault, your high liability and umbrella does NOTHING for your passengers like me in the back seat...
7. MP has another advantage...some accidents have no one at fault, meaning, say, two people both ran a stop sign (or are accused of doing so), so if fault is split 50/50, here in GA, nobody's liability may end up paying, but at least MP will pay med bills regardless of fault, as long as there was a collision with injuries...
8. Your question on driving a borrowed car: I can only give what GA would do...
a. if the car has no insurance, you will be covered by YOUR liability insurance if you are at fault...
b. if the borrowed car in UNDERinsured (again, we assume you are driving and at fault), then his policy will pay out first, then your policy, if coverage amounts are greater than his, will pick up the rest...some states allow "stacking", adding one policy to another, but sometimes the rules are quirky...once again, if YOU have MP while driving the borrowed car and cause the wreck, your group will pay for your injuries but your MP will cover me and my wife in the back seat and it will cover you at no out of pocket cost...
9. If you are the at fault driver in a borrowed car, the sequence is this...first, the insurance of the car...if none, or not enough, then your insurance will kick in...
10. Frankly, there is not one argument against MP unless someone simply does not want it, but, consdering the cost of less than $100 yearly, there is no PRACTICAL downside at all, and the coverage it buys you is huge...I pay $72 yearly for $100K MP, so if I have six people in my car, I have up to $600,000.00 (6 x $100K) total coverage for me and my passengers, first dollar coverage, for six dollars a month...even with my own group insurance, I have a $20 copay, so a mere 4 visits to any doctor and I have paid out $80, which is $8 more than my yearly premium...if I need 20 visits at a chiro or PT, that is $400 in copays...if I need more than my alloted 20 visits that group pays, it will cost maybe in excess of $1000, and that is just me, what about the cost for my wife, we may now exceed a few thousand dollars, yet my MP pays it all w/o deductible or copays...
Forgive my insistence, but this is less than a no-brainer...anyone may decide not to buy MP, but there is no downside whatsoever, none...and anyone that says that $100 or even $200 per year is too much, then wait until those injuries, copays and deductibles come in, and then see if $100 or $200 per year was too much...
If you care about your passengers, there is only one decision...period...
We pay thousands for liability, collision, comprehensive, etc...another $100-200 for injury coverage is pennies in the wishing well for the coverage you get for you and your passengers, family or otherwise...
If you are going to insure against risk, this is the cheapest premium for the greatest possible payout...
Not to be morbid, but the payoff is greater the more serious the injuries...say you had $50K in medbills and the at-fault party had $100K liability policy...again, I assume an attorney at 1/3...if you have group that pays $35K on your $50K bill, and subrogates, your net settlement will be $100,000 minus $33,000 (atty fee) minus $35,000 payback equals $32,000 to you...
With MP, usually no subro, so $100,000 minus $33,000 atty fee equals $67,000, a gain of $35,000 all because you had MP instead of group ins...no brainer to me...
If you have no group, medpay is now more than necessary...$100,000 minus $33,000 atty fee minus $50,000 in meds nets you $17,000...with MP you now net $67,000, a gain of $50,000, all because you spent another $100-200 per year on MP...
If there is an argument against MP, I can't see it...now if MP cost $500 or $700 per year, there may be an argument against it, but still, when you have seen the serious wreck injuries like I have, even then it may be a bargain, because you are still insuring yourself against risk, and with all these folks driving putting on makeup and talking on cell phones, the risk of a serious wreck is high...
Statistically, the risk is low on any given day that one will be involved in a wreck, but for the one who WILL be involved, they will not know if the other vehicle is a VW Beetle or a loaded cement truck out of control with brake failure...having good medical coverage with MP just seems to be the right answer to the right problem...
Does that help at all???...have I answered the questions or do you have followups???...this is important to me, because of all the folks who have their credit ruined because they just buy the minimum required by law...if everyone had MP, they would all net more in their settlements, doctors would be paid timely, and the stress would be lessened by 95%...do you have any idea how much stress is added to the person who is in pain from the wreck, out of work, already falling behind due to no paycheck, and now the hospital is hounding them for payment of their $15,000 hospital bill, calling them every day for a payment schedule???...MP would solve at least THAT problem...
Whihc brings me to a point I had not previously thought of...even with group ins, if you are out of work, those $20 copays can really add up quickly, adding more stress...MP would solve that even for the person with group ins, adding even another rwason why the person with group should still have MP...
It is the cheapest bargain for the $$$, and yet so few know about it, yet they can spew out the stats for their favorite football team as tho those stats had any meaning in life...
What do I know, I just work here...:):):):):)
Yep, it's almost been 6 months since I last asked about collision and my policy renewal is due next month. :shades:
Steve, Host
SUVs & Speed Shop
The insurer for the semi paid for the damage to her car promptly but refused to settle on the rest of her claim.
Eventually, she has to sue and the case was tried last month here in Ohio. Prior to the start of testimony the insurer finally makes an offer of $25,000. She dropped her demand to $40,000. Amazingly, the case went to a jury (3 day trial) over that $15,000 difference.
The jury returned a verdict for $75,000.
The greed and stupidity of insurance companies never ceases to amaze me.
What is covered?
Medical Payments coverage covers you if you are involved in an automobile accident and consequently incur medical or funeral expenses due to bodily injury sustained in an accident. This coverage also protects you and relatives who reside in your household while in other vehicles or if struck as a pedestrian. Certain exclusions may apply.
What does it pay?
The limit that you select will be the most that will be paid to each person insured on your policy in one single accident. This coverage pays per person after all other coverages that may apply have been used regardless of fault.
Why do I need this?
Many people buy this coverage to supplement their health insurance coverage. It is a very inexpensive supplement to your medical insurance when you are involved in an automobile accident.
Example
You are involved in an accident where it has been determined that the total medical expenses for you and your passengers is in the amount of $55,000 dollars. The other driver was at fault and only had Bodily Injury coverage limits of $25,000 per person/$50,000 per accident. You did not have Uninsured / Underinsured Motorists coverage. You have selected a limit of $5,000. The insurance company of the at fault driver would only be liable to pay up to $25,000 per person injured but no more than $50,000 for this accident for you and your passengers medical expenses. Your Medical Payments coverage would pay up to $5,000 dollars for the remainder of your medical expenses.
Your coverage limits, deductibles, and certain exclusions may apply. Please read your Progressive Direct policy for details
Progressive was the poor claims handling insurance company I referenced in #2377. Why buy from a company that doesn't pay off when it should?
Your question depends on a few things...your own personal cash position, the cost of collision and the value of your cars, which you stated at $5K each...
In 2001, my 88 Prelude was worth about $3-4,000...not much, but my collision premium for a full year was only $200...so, to me it was worth the $200 in the event it was totalled, I would receive about $3k as a down paymt on the next vehicle...
If the premium was $500 yearly, I would have felt that I was simply insuring myself, and I would have dropped it...
The same applies to you...if the premium is, say, $400 per car or less yearly, it may pay to keep it another year or two...it it exceeds $600 or more per car, it may pay to drop it...
We play the odds...if you drop it on both cars, and they are BOTH totalled, stolen or burned up (highly unlikely, but some folks seem to have days like that, you know, if I didn't have bad luck I wouldn't have any luck at all), could you absorb the $10,000 loss of both cars and buy new/newer ones the next day???...if you can, drop the insurance, but if you can't, well...
And never forget Murphy's law...the day AFTER you drop the collision, one car will be stolen, never to be recovered, and the other one will be totalled by the runaway concrete truck at Interstate speed...make sure you have rental car insurance...
And, increase your medpay anyway...see recent, long winded previous post for information...long winded, yes, but hopefully informative...
cccompson...yes, it is amazing when the ins company will undergo a 3 day trial for $15K, and I am happy they lost...I also wonder if Progressive will remember that the legal fees they paid THEIR ATTYS for that loss may almost equal the amount of the award...if we are REALLY lucky, atty fees for the Plaintiff were added to their complaint, and, if awarded, could add another amount to the loss...I can appreciate ins companies defending frivolous claims, but sometimes they do make me wonder...esp if the car was destroyed and the offending vehicle was a semi...the physics of large mass of truck would certainly justify $13K in meds w/o any thoughts of fraud or frivolous litigation...
Yes, if the well doesn't go dry (seriously - two wells in the neighborhood here have gone dry in the last 2 months and the estimate to replace one is $30k. Wonder where I can get well insurance?).
hmmm, I'm paying ~$115 every year for collision for each car. The cars are barely worth replacing the timing belts on, you know? Guess I'll pay and shine the decision on another 6 months when I'll return to bug you again. :P
Thanks for your posts, Bob!
Steve, Host
SUVs & Speed Shop
Mikefm: Your post is good, but how about splitting the difference???...if the wreck is Steve's fault, maybe he would not make a claim due to his rates possibly rising...but if the wreck was the other guy's fault, and if he was uninsured (obviously, if he was insured, his liability would pay for the damages) then Steve could make a claim with less chance of rates going up as fault was not his...still worth $115 per car per year, IMO...that is just cheap insurance at that cost, and the possibility of a $5K payout, or even a $3K repair, is certainly warranted...
Heck, most guys will probably spend more than $115 simply on Valentine's Day, with chocolates, flowers, and dinner, just in the hope of...well...you know!!!...and most guys would think that $115 is rather inexpensive, if you catch my drift...and if you don't catch my drift, well, take two aspirin and call me in the morning...:):):):):)
To add to that: if the well ran dry, and mucho dinero must be spent to "fix" the well(s), then the $5K may not be there for vehicle replacement in the event of a total...seems to me to be another reason for spending the $115 per car, as available cash may be alloted to another priority in the family...
Unless Steve Host is in the same league as Ross Perot or Bill Gates...then everything I have said means nada...
Deductible = $500
Premium = $100
Salvage = $1000
Total $1600 you have, not buying collision so why spend $100 to insure a net $2400?
Better to spend that $100 for higher Med Pay & limit of Liability.
I tell you what's really going to happen - with two cars each about a decade old, one of these days I'm going to start posting over in Help! Repairs cost more than the car is worth!!.
I'm not there yet, but soon.
Deductible = $500
Premium = $100
Salvage = $1000
Total $1600 you have, not buying collision so why spend $100 to insure a net $2400?
You are being very optimistic on the salvage value of a vehicle. Depending on what it is some are worth as little as $50 or as much as $500. Main reasons are how many are out there? Do they part out well? Are the parts interchangable to different years? Just food for thought, my little brother works for a salvage yard and he can peg a value of a vehicle to within a couple dollars of what the salvage yard owner will pay.
If coming up with the 3 grand was difficult, esp after replacing a well, then the $115 per car is $$$ well spent...and raising the medpay is just smart sense regardless of whether or not he maintains collision insurance...the $$$ spent on MP would pay for the injury that he may not be able to afford to pay for, regardless of collision or the well...
Too many "regardlesses" if you ask me...:):):):):)
Traindriver
Regardless, I appreciate your input about medpay and the discussion about "borrowed" vehicle. It helps more than you realize, as the "borrowed" vehicles that I occasionally drive are in the metro Atlanta area. The fact that I am a SC licensed driver driving this "borrowed" vehicle (also licensed and insured in SC) wouldn't change your answers, would it? i.e. Georgia law would apply since the accident would occur in the state of Georgia despite the fact that all parties on my side are residents/licensed/insured in SC.
I do know this: GA minimum limits for liability are 25K/50K...if another state has lower limits, say, 15K/25K, if that out of state driver causes an accident here, their insurance will actually cover up to 25K/50K because those are OUR minimum limits...
But I do not know how your insurance would cover YOUR passengers in your car if you caused the wreck here in GA, altho if someone else hit you, then their limits of their policy here in GA would cover you, as a GA driver with GA insurance would cover you regardless of any state you were from, as this is our home jurisdiction...
$5,000 medpay is better than nothing...is your state fault or no-fault???
South Carolina is a fault state.
Assuming (???) that FL has the same coverages as GA, I recommend maximum medpay, as you can be seriously injured, regardless of fault, in a $100 1972 Nova or a $100,000 2007 Merc S600, so medpay should be on every policy on every car you own...
Same for UM...if you ever need to recover pain and suffering from an uninsured motorist, does not matter if a 72 Nova or 07 S600, the coverage should be there for your protection...
Same for Rental car coverage...$20 per day for 30 days usually has a premium under $25 per year...
Towing might not hurt to have, unless you already have AAA...I have towing on my auto policy
Maximum basic liability, depending on company, can be $100K/300K or $250K/500K...that is if you have assets to protect...if you live under a bridge in a box, with no assets to worry about, get the minimum...
If you have assets, consider the $1 mil or 2 mil umbrella policy...check your company, as I had to buy an additional umbrella to raise my UM to $1 mil, but I already had the liability up to $1 mil (covers liability on my home and both cars)...some companies already cover the UM if you buy the umbrella and do not separate it, my company separates it...
Can't think of anything else, except please do not get into an accident...:):):):):)...
You will soon have your refurbished lemon back to love, cherish or dump...
b. You're already paying to much with a $100 deductible. Increase your deductible to $500 or $1,000 and any increase should be offset by the lower rates.
c. Go to a couple of body shops and ask for a FREE estimate and let them know your thoughts. It may also be a good idea to check with a used car lot (trade in with damage and trade in with repairs).
d. Get all of this information ASAP as reporting the incident to the insurance (should you do what I would do) needs to be done while the roads are still slick. It won't do you any good to decide in July to report winter damage...
e. Best of luck!
The other driver left a note that admitted fault, provided her insurance company, policy number, and her phone number. When my wife talked with her over the phone, the other driver was apologetic and cooperative.
I called my insurance company (USAA) Tuesday night and scheduled an appraisal for this afternoon at a local body shop. I was also referred to a claims adjustor who would be handling my situation. I have called her twice, Wednesday morning and this morning, and have yet to hear back from her. Is this normal? I don't intend to file a claim with my company since we are not at fault, but I am hoping to hear from my representative so she can advise my about my options and deal with the claims rep from 21st Century.
21st Century is another story. When their representative contacted my wife, she told him we are doing an appraisal too. He stated, "Oh, so you are going to file this with your own company?" His tone was slimy - as if he saw an escape. My wife stated, "No. Your driver was at fault, admits that fault, and you insure her. I wasn't even in my car. We are merely appraising to know all our options and play it safe."
Another 21st Century rep called again this morning, making the same assumption - that we are filing a claim with our insurance. My wife corrected him again - this time tersely and with annoyance.
Those are the facts of the situation so far. I live in California.
These are my questions:
Is it common for my own representative to never call me or return my calls, at least until she receives the appraisal?
I am entitled to get a damage/repair estimate at the shop of my choosing, right?
21st Century can insist on their own appraisal, right?
I am choosing the shop for the actual repairs, correct?
21st Century is supposed to provide us with a vehicle of similar value - not some trash econobox; my wife has people of consequence in her car regularly.
Are these guys (21st Century) going to try to weasel off the hook at any opportunity? Oh wait, I think I already know the answer to that question.
Can I insist on genuine Infiniti/Nissan parts since the car is still under warranty, has an extended warranty, and I do not want it voided in the future due to someone else's cost cutting decision?
I keep reading about "diminished value." Does this pertain to my situation?
I want to thank any responders ahead of time; these are the questions I would normally ask my own representative, had she bothered to return my calls.
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2015 Kia Soul, 2021 Subaru Forester (kirstie_h), 2024 GMC Sierra 1500 (mr. kirstie_h)
Review your vehicle
Any help, guidance or advice will be really appreciated.
Thanks
The body shop you scheduled for an estimate assumes he will not get the repair work because your company "isn't on it".
Therefore, an estimate from him is low on his priority.
If 21st Century sends their work to a certain shop while you prefer another, it would be in your best interest to take a pro active position and you take your car to your body shop, authorize the repair, & advise 21st Century where they can see the damaged vehicle.
When advising the Claims adjuster of your decision, you then inquire of which rental agency they prefer to rent a substitute motor car of consequences for you & have 21st Century commit to the "rent" of the car.
As the crash is not disputed, 21st Century will not weasel.
You should insist on genuine factory parts.
As for diminished value, it would help to know in dollars what the damage is. The less the damage the less the DV.
The older the vehicle, the less the DV as well.
Being pro active with 21st Century, but not agressive should serve you well. Good Luck.
Your daughter might want to look at the web site allie4ever.com .