Tilted Forum Project Discussion Community - View Single Post - Help: Learning about Insurance ... and you'd rather be in the The Erogenous Zone

The_Jazz · 06-28-2006, 05:15 AM

I guess that this falls to me as the resident insurance nerd. And considering that I had to finish off the last of my continuing education for my license last night with the "Personal Auto" test, I actually do recall a little about this stuff, even if it's not something that I normally get involved with.

First of all, Cookmo is right about several things - go to an independent agent, raise your limits and consider raising your deductibles on the physical damage. First, independent agents have access to lots of companies that write personal auto coverage. They can help you figure out what the best deal for you is. They'll most likely recommend packaging it with your renters insurance (I'm making an assumption here), which is a fantastic idea since you definitely need that as well. My largest client base is independent agents, and if you need help, just let me know where you are and I can probably figure out some recommendations since I deal with agents across the country (Cookmo, there's an excellent chance that someone in my office deals with your family's agency if there's any size to it).

The average auto claim for bodily injury in 2000 paid out something like $40,000 (although that number includes commercial claims, which are traditionally much higher because of the size of vehicle involved). Think about how much medical treatment costs and you'll get a quick idea. Never, ever, ever buy the state minimums unless you are fully prepared to spend the rest of your life with garnished wages. You need at least $100,000 in BI coverage, and personally I think that $250,000 is a reasonable amount. You may not be able to afford that, but it's something to think about.

On the physical damage coverage, definitely think about raising the deductible or dropping the coverage altogether. Look at it this way, right now, you're paying the insurance carrier 20% of the value of the car every year ($134.43 x 2 = $268.86 on a car with a blue book value of $1,300). My rule of thumb for my cars throughout the years is that I don't bother to by physical damage coverage on anything less $5,000. However, that's my personal decision and not necessarily my recommendation as an insurance professional. You're already banking money for a new car, and my assumption is that you're planning on driving your Neon into the ground before replacing it. There's little difference between a wrecked car and one that doesn't run because of a mechanical breakdown in terms of drivability.

And before you ask, no, I can't help you with your personal auto coverage since you definitely don't want what I bring to the table. If you ever have a fleet of garbage trucks (or better yet, start manufacturing garbage trucks), I'm definitely your guy, though.

06-28-2006, 05:15 AM	#3 (permalink)
The_Jazz Asshole Administrator Location: Chicago	I guess that this falls to me as the resident insurance nerd. And considering that I had to finish off the last of my continuing education for my license last night with the "Personal Auto" test, I actually do recall a little about this stuff, even if it's not something that I normally get involved with. First of all, Cookmo is right about several things - go to an independent agent, raise your limits and consider raising your deductibles on the physical damage. First, independent agents have access to lots of companies that write personal auto coverage. They can help you figure out what the best deal for you is. They'll most likely recommend packaging it with your renters insurance (I'm making an assumption here), which is a fantastic idea since you definitely need that as well. My largest client base is independent agents, and if you need help, just let me know where you are and I can probably figure out some recommendations since I deal with agents across the country (Cookmo, there's an excellent chance that someone in my office deals with your family's agency if there's any size to it). The average auto claim for bodily injury in 2000 paid out something like $40,000 (although that number includes commercial claims, which are traditionally much higher because of the size of vehicle involved). Think about how much medical treatment costs and you'll get a quick idea. Never, ever, ever buy the state minimums unless you are fully prepared to spend the rest of your life with garnished wages. You need at least $100,000 in BI coverage, and personally I think that $250,000 is a reasonable amount. You may not be able to afford that, but it's something to think about. On the physical damage coverage, definitely think about raising the deductible or dropping the coverage altogether. Look at it this way, right now, you're paying the insurance carrier 20% of the value of the car every year ($134.43 x 2 = $268.86 on a car with a blue book value of $1,300). My rule of thumb for my cars throughout the years is that I don't bother to by physical damage coverage on anything less $5,000. However, that's my personal decision and not necessarily my recommendation as an insurance professional. You're already banking money for a new car, and my assumption is that you're planning on driving your Neon into the ground before replacing it. There's little difference between a wrecked car and one that doesn't run because of a mechanical breakdown in terms of drivability. And before you ask, no, I can't help you with your personal auto coverage since you definitely don't want what I bring to the table. If you ever have a fleet of garbage trucks (or better yet, start manufacturing garbage trucks), I'm definitely your guy, though. __________________ "They that can give up essential liberty to obtain a little temporary safety deserve neither liberty nor safety." - B. Franklin "There ought to be limits to freedom." - George W. Bush "We have met the enemy and he is us." - Pogo