Trying to find cheaper car ins - questions!

[Amy752]

Right now we pay $117 a month for car insurance. That seems pretty high to me, especially since we only have one car (and it's a clunker). We drive so little that we only pay about $10 a week in gas! I can get my payments down to about $47 a month w/ Geico, but I am kind of scared about the coverage....

Here's what it would be:

Bodily Injury Liability(BI) $25,000 / $50,000 $126.10
Property Damage Liability(PD) $10,000 $103.10
Medical Payments(MED) $1,000 $12.70
Uninsured & Underinsured Motorist $20,000 / $40,000 $42.80
Comprehensive(COMP) NO not provided
Collision(COLL) NO not provided
Emergency Road Service(ERS) NO not provided
Rental Reimbursement(RR) NO not provided

Is that enough do you think? I really don't understand this stuff. Don't we need comprehensive and collision? I got this rate by putting in all our info and picking their "regular" coverage package. Any opinions or help would be appreciated.

[Keen]

To help you we need to know what you mean by "clunker"

What is the value of your car? (estimated)

Do you still owe any money on the car?

If the value of the car is low (under 3-4k for most folks) and its paid for then you can choose to go without cocomprehensive and collision...but if it is damaged/wrecked it is on you to fix or buy another car.

Now depending on your assets the minimums that you list for BI, PD, Med, etc. may be low, but you can raise those for not much money...

What is the coverage you have now for $117 a month?

[Amy752]

It's a '97 neon with more than 100,000 miles and is paid off. I have no idea how much it's worth, although I can't imagine it's worth much.

For the $117 we are paying now we have:

Bodily Injury Liability(BI) $20,000 / $40,000
Property Damage Liability(PD) $10,000
Medical Payments(MED) $5,000
Uninsured & Underinsured Motorist $20,000 / $40,000
Comprehensive(COMP) Actual Cash Value
Collision(COLL) Actual Cash Value
Emergency Road Service(ERS) YES
Rental Reimbursement(RR) $30 each day/max 30 days

I imagine if we got in an accident it would be the excuse we need to get a new car. We've been putting it off, basically waiting for this one to die, lol... In my mind, it's not worth it to get the comprehensive and collision, but at the same time, that seems very scary......

[Keen]

Its the "Actual Cash Value" part of it that is the issue...

If the car was a total loss this week what would the ins company give you for it after your deductable? I am guessing less than $1500 dollars.

If it where me I would drop the COMP and COLL and put that money into a "replacement car" fund each month.

I would check with a couple of other companies before choosing Geico...nothing any worse with them than anyone else but shopping around is good. We found our best rates thru a local independ. ins. broker. Good luck and if you drop the coverage and total the car next week feel free to curse me!

But I doubt that will happen!

[Amy752]

Lol -- that's what I am paranoid about!!!! Murphy's law says as soon I switch, that car is a goner....

Ok 2 more questions -- if we do drop comprehensive (I have no idea what that is, btw) and collision, what happens if we get into an accident and it's the other person' fault? Their insurance will pay for our car to be repaired, right? And what if the accident is our fault? Our insurance will still pay for the other person's car, correct?

I am so clueless when it comes to car insurance!

[Keen]

You really need to talk to a local agent...it may be that they pay or it may be a "no fault" state and it is on your insurance either way.

I would call a local independent with all of these questions and get a couple of quates while you are at it,

[34saving]

Comprehensive is basically anything but collision. (Hail, flood, GLASS (get a new windshield now if you need it), tree falls on your car, etc.) Even if your state is no-fault that's probably only for medical payments. The only thing your collision and comp. are protecting is the $1500 or so value of your car. Moreover, collision is only going to be important if the accident is your fault. So, ask yourself: "Is it worth $x a month to protect my $1500 against me hitting something (like a parked car) or something (like hail) hitting me?" BTW, I second the opinion that your coverage limits for medical are very minimal (I'm not even sure they're legal in MN). If you have any assets worth taking I'd up those limits. (If you don't have any assets it doesn't really matter because they're not going to sue a proverbial turnip.) I also second the notion of shopping around. It really can make a huge different in cost as well as understanding.

[sweeps]

At least here in Illinois, the medical payments line only refers to medical coverage for passengers in *your* car. The liability coverage is for everyone else -- and should be ramped up if you have high assets.

[Snoopy2645]

Well I have always kept only liablity on my cars for under $40 a month & if I were you I would go with that too. Considering the year & miles & car value KWIM I would also consider how many cars have you had something happen to that were your own fault I know myself I have only had one thing that was my fault & thats been 10yrs ago now so I dont have a problem taking the lesser ins. JMO

If you have a house and have house insurance you should check into having them both from the same company. I save 10% on the house and 10% on each of my cars because I have it with the same company. One month ago, they raised my car insurance rate after an audit by about $15 per month. I got angry and called them. I did not threated to drop my coverage but my tone implied it. I asked them to review my accounts again to see if they made an error. Magically, they called back in 30 minutes and said we found another discount for you and you will save $1.00 per month compared to what you were paying.

In the end, my payment went down, yeah!

By the way, I pay about $87.00 total per month for 2 cars & 2 drivers and I have all kinds of coverage. I had some vandals in my neighborhood a few years back and I still have the lowest deductable possible on comprehensive ($50).

It pays to be with the same company for a long time as well. They are more likely to give you discounts.

My company gives a discount if you haven't had any claims or traffic accidents for a particular amount of time & for multi cars insured.

Also, make sure your company knows if you have anti-lock breaks, theft preventing devices such as alarm or electronic keys, or air bags. They all will lower your bill.

I checked Geiko and they were more expensive than my local company if I were to keep all the same coverage.

Good luck

[Fern]

Definitely go with GEICO. You don't need collision and comprehensive on an 97 car.

Another way to save money, since you say you hardly drive it, is to tell your insurance company that; if you don't use it for commuting to work, for instance, they'll give you a lower rate based on the fact you only use it for 'pleasure; driving.

Also, increase your deductibles. Take advantage of any savings from having airbags, a security system, anit lock brakes, etc. even if you do have them, if you haven't told your insurance company, you're not getting the discount! Take a safe drivign exam if your insurer offers it; another discount.

[fultron]

Tha seems pretty high to me...we only pay $158/month for 2 cars (an 03 and a 93) and we have super high coverage. I think our liability is at $500,000 and our personal injury is like $1,000,000 of coverage. It sounds like a lot but god forbid we're ever in a nasty accident...

If you're not sure what the different terms mean, this article explains them:
http://www.saving-money-and-living-d...insurance.html

[debtfreeme]

Thanks for the website i learned something!

[CJsoccerchic]

For a car that you own and you consider it to be of a lot of value - I would go with good coverage. Also - if you know that you are not the best driver (be honest with yourself) then definently get good coverage. I have a 2003 honda civic that i paid off a year ago and because it belonged to the bank, I have full coverage for the first 2 years. As soon as I could change it over when I OWNED the car, not the bank, I went to liability. I know that I'm a good driver, so I'm confident that I won't hit anybody. BUT - here's the drawback. If you get into an accident and it's someone else's fault and THEY do NOT have insurance - the liability isn't going to help you any. Just the other day, a young girl hit me (she backed into me) and lucky me that she had insurance, or else I'd have to pay for the damages... So that's the one drawback about liability.

[CJsoccerchic]

oooo.. forgot to mention - with full coverage when the bank owned my car - Ipaid over a 1000/year. when I went to liability it was likw $140/year.

[Russell]

The limits for Liability Bodily Injury and Property Damage seem too low. To me these are the most important coverages to look at in any auto insurance quote.

and to quote the verbage from an auto-insurance website (since I don't feel like typing this ):

"If you select limits that are too low, you could be putting yourself at risk financially. For example, if either you or a driver covered by your policy cause a serious accident where damages exceed your limits, you will be held responsible for the amount above your limits.

To make that payment, you could be forced to liquidate property, savings and other assets, or your future earnings could be attached. By purchasing liability limits to account for both your current assets and future net worth, you can help protect yourself against this risk."