auto insurance coverage

[thomasdan]

So its time to renew my policy.

previously My wife and I had 15,000/30,000 coverage for 2 cars. I just got an email that said our policy thru progressive is 50 dollars less per month = tp 300 dollars saving for 6 month policy.

I called progressive this morning to see how much a 100/300 coverage will be and its ONLY 58 DOLLARS extra for the entire 6 months. For $9.60 more a month for alot more coverage since now we have asset just seem like a no brainer to me.



What coverages do you guyy/ladies have for the family?

[ua_guy]

I used to settle auto insurance claims for a living and I've always carried high policy limits as a result. I do it for one reason...because un/underinsured limits are in-step with liability limits, I carry high limits to insure myself against at-fault parties that carry state minimum limits, so I can recover from my own policy. Win/win. It's shocking (sad) how fast minimum policy limits are exhausted in a moderate injury accident.

The step in rates is not proportional to the coverage limits as the OP outlined above. To double or triple liability limits becomes affordable in scale. If you're able to step up to 100k/300k coverage, as an example, why not look to see what it costs to go 250k/500k coverage? It's probably only a couple dollars extra.

It's also important to consider asset protection when choosing policy limits. If you have considerable assets but cheap out on insurance coverage, those assets come into play when you are liable for an accident. Raising policy limits to protect your assets is a good idea..

[thomasdan]

i'll look into the 250/500 before I make a decision. Im sure it's not going to be hard one.

I'm not sure what the rule of thumb is, but do people usually get the same amount of coverage for unisured coverage as they do for Bodiliy injury coverage?

My wife and I just bought our first house 1 year ago. Just want to make sure we're being smart and being covered in all direction since sometimes its out of our control on what other drivers are doing. Before we were just young and buying the minimum coverage our state allowed.

[bjl584]

Auto insurance is one of those things that varies greatly by region. Any comparison that you do is going to be apples to oranges.

I live in Southwestern PA and pay $62 a month for my 2011 Sierra. I have a $1000 deductible.

[ua_guy]

i'll look into the 250/500 before I make a decision. Im sure it's not going to be hard one.

I'm not sure what the rule of thumb is, but do people usually get the same amount of coverage for unisured coverage as they do for Bodiliy injury coverage?

My wife and I just bought our first house 1 year ago. Just want to make sure we're being smart and being covered in all direction since sometimes its out of our control on what other drivers are doing. Before we were just young and buying the minimum coverage our state allowed.

Like anything, it's a gamble and how much you are willing to spend for coverage. But yes, uninsured limits usually follow your liability limits.

[thomasdan]

Thanks for your reply,

i know that most if not all car loans require collision and comprehensive insurance.

i have a 2004 car that has a salvage title from awhile back. I'm sure its not even worth 5,000 dollars. I have no loans on it. Does it make sense to pay the 200 dollar for 6 months on it? the deductible was $500.

[thomasdan]

btw, it was 9 dollars more a month to go from 100/300 to 250/500. and thats with bodiliy injuries and unisured coverage combined.

[feh]

We have $100K/$300K, and have for a long time.

$15K/$30K seems really low to me.

[ua_guy]

Thanks for your reply,

i know that most if not all car loans require collision and comprehensive insurance.

i have a 2004 car that has a salvage title from awhile back. I'm sure its not even worth 5,000 dollars. I have no loans on it. Does it make sense to pay the 200 dollar for 6 months on it? the deductible was $500.

I don't think there's any threshold where you absolutely should drop collision and/or comp coverage. That depends on your comfort level and how quickly you could recover from the loss of the vehicle by an at-fault accident or theft. If the car was gone tomorrow, would you be in a spot where you could immediately replace the vehicle and not be short on cash?

Rebuilt-titled vehicles can see a reduction in value anywhere from 10-30% (sometimes more, depending on repair quality). It might be worth hopping on KBB or Nada and finding a baseline value for the car and then calculating the salvage deduction and see where the car's value lands. Use that figure as a rough base to determine your comfort level in deciding to drop (or keep) those coverages on it.

[thomasdan]

ua_guy,

you make a very good point. we're not in a position where we can just take the loss and move on.

I decided that im just going to keep it. Its just what my gut is telling me. even though i really just want to get rid of it.

Thank you for your insight.

Plus, I did make the move to 250/500. Its kinda funny how i feel more confident/at peace on the road with better coverage.