Can You Say...Auto Insurance

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snarlyjack
Posts: 649
Joined: Fri Aug 28, 2015 12:44 pm
Location: Montana

Can You Say...Auto Insurance

Post by snarlyjack » Fri Jan 19, 2018 10:29 am

I have pretty good coverages 100/300/50 to protect myself & my
assets in case of a accident. I' am even thinking of a umbrella policy.

The problem is my premiums keep going up with my big national company.
I just received in the mail yesterday my renewal notice. From what I
can tell the premium is going up 16%.

This is with a high credit score. No tickets or accidends. College degree.
Nice car with airbags & anti lock brakes. It's pretty frustrating. It's hard
to really fund my mutual funds when my expenses keep going up.

Is anyone else having this problem? Suggestions would be welcome.
I talked to my agent yesterday & he told me that all the insurance
companies are raising their rates due to natural disasters & accidents.

Thanks for letting me rant...any suggestions?

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dm200
Posts: 15712
Joined: Mon Feb 26, 2007 2:21 pm
Location: Washington DC area

Re: Can You Say...Auto Insurance

Post by dm200 » Fri Jan 19, 2018 10:32 am

snarlyjack wrote:
Fri Jan 19, 2018 10:29 am
I have pretty good coverages 100/300/50 to protect myself & my
assets in case of a accident. I' am even thinking of a umbrella policy.

The problem is my premiums keep going up with my big national company.
I just received in the mail yesterday my renewal notice. From what I
can tell the premium is going up 16%.

This is with a high credit score. No tickets or accidends. College degree.
Nice car with airbags & anti lock brakes. It's pretty frustrating. It's hard
to really fund my mutual funds when my expenses keep going up.

Is anyone else having this problem? Suggestions would be welcome.
I talked to my agent yesterday & he told me that all the insurance
companies are raising their rates due to natural disasters & accidents.

Thanks for letting me rant...any suggestions?
Review details with agent. Make sure:
1. You are classified correctly - annual mileage, to/from work or not, etc.
2. Do you have any coverage not needed, such as low deductible, towing, etc.
3. Do you have other insurance with same company?

Shop around with other companies.

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bottlecap
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Location: Tennessee

Re: Can You Say...Auto Insurance

Post by bottlecap » Fri Jan 19, 2018 10:36 am

You don’t have good coverages.

If you get into a major collision, medical bills could easily eat up that $100,000 in coverage and then you will be threatened with paying the rest.

JT

Jack FFR1846
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Re: Can You Say...Auto Insurance

Post by Jack FFR1846 » Fri Jan 19, 2018 11:20 am

Get an umbrella.

Sorry, that won't reduce your costs. If you absolutely have to reduce cost, drop collision if you feel lucky.
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EvelynTroy
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Re: Can You Say...Auto Insurance

Post by EvelynTroy » Fri Jan 19, 2018 11:23 am

I agree with Bottlecap - your coverage is not all that strong - you might want to discuss your coverage limits with the agent.
I have found it helpful to work with an insurance broker - the broker shops across multiple companies for the best coverage/value. Every two years (think its two years) the agent re-shops across different insurance companies to see if my current coverage is still the best value.
Twice in last I'd guess 7-8 years the broker recommended I change insurance companies - once was a savings of $200 a yr.

dm200's suggestions are good ones. Especially having all your insurances with one company will generally result in good discounts.

Evelyn

ssquared87
Posts: 523
Joined: Tue Apr 02, 2013 9:54 am

Re: Can You Say...Auto Insurance

Post by ssquared87 » Fri Jan 19, 2018 11:35 am

Actually, in some cases getting umbrella does reduce the cost.

My agent suggested umbrella and I told him I didn't need it but he said it would be slightly cheaper because of bundling discounts. I think I'm saving about $3/month by getting umbrella coverage.

As far as the increase goes, shop around. I've worked with insurance companies before and they sometimes change their risk scoring models or their appetite for risk and change rates to get rid of customers they no longer want. These changes are far from industrywide, so you may find radically different rates at other companies.

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dm200
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Location: Washington DC area

Re: Can You Say...Auto Insurance

Post by dm200 » Fri Jan 19, 2018 11:42 am

While it may be hard to "quantify", having auto insurance that pays valid claims quickly and can, if needed, fight for you when another driver is at fault (and you file under your collision) can be worth a lot - both financially and "aggravation".

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dm200
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Location: Washington DC area

Re: Can You Say...Auto Insurance

Post by dm200 » Fri Jan 19, 2018 11:45 am

EvelynTroy wrote:
Fri Jan 19, 2018 11:23 am
I agree with Bottlecap - your coverage is not all that strong - you might want to discuss your coverage limits with the agent.
I have found it helpful to work with an insurance broker - the broker shops across multiple companies for the best coverage/value. Every two years (think its two years) the agent re-shops across different insurance companies to see if my current coverage is still the best value.
Twice in last I'd guess 7-8 years the broker recommended I change insurance companies - once was a savings of $200 a yr.
dm200's suggestions are good ones. Especially having all your insurances with one company will generally result in good discounts.
Evelyn
I have been with State Farm since 1972 for auto and since 1978 for homeowners. Only once did I have any disagreement about payment of a claim on auto and it was both minor and, after appeal, was decided in my favor. I/we have had several agents from State Farm over the decades, as one leaves or retires. The State farm agents have always been very helpful and responsive to me/us.

t885
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Re: Can You Say...Auto Insurance

Post by t885 » Fri Jan 19, 2018 12:24 pm

bottlecap wrote:
Fri Jan 19, 2018 10:36 am


If you get into a major collision, medical bills could easily eat up that $100,000 in coverage and then you will be threatened with paying the rest.

JT
Having high medical coverage on your auto policy is a waste of money if you have good primary medcial coverage.

ssquared87
Posts: 523
Joined: Tue Apr 02, 2013 9:54 am

Re: Can You Say...Auto Insurance

Post by ssquared87 » Fri Jan 19, 2018 1:00 pm

dm200 wrote:
Fri Jan 19, 2018 11:45 am
EvelynTroy wrote:
Fri Jan 19, 2018 11:23 am
I agree with Bottlecap - your coverage is not all that strong - you might want to discuss your coverage limits with the agent.
I have found it helpful to work with an insurance broker - the broker shops across multiple companies for the best coverage/value. Every two years (think its two years) the agent re-shops across different insurance companies to see if my current coverage is still the best value.
Twice in last I'd guess 7-8 years the broker recommended I change insurance companies - once was a savings of $200 a yr.
dm200's suggestions are good ones. Especially having all your insurances with one company will generally result in good discounts.
Evelyn
I have been with State Farm since 1972 for auto and since 1978 for homeowners. Only once did I have any disagreement about payment of a claim on auto and it was both minor and, after appeal, was decided in my favor. I/we have had several agents from State Farm over the decades, as one leaves or retires. The State farm agents have always been very helpful and responsive to me/us.
State farm rewards customer loyalty with bigger discounts the longer you are a customer.

I switched to State Farm about a year ago because they were one of the cheapest for my situation, and they also have provided amazing service. I have been very happy with the agent's suggestions and responsiveness. Certainly better than eSurance and Ameriprise which I had prior.

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BolderBoy
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Re: Can You Say...Auto Insurance

Post by BolderBoy » Fri Jan 19, 2018 1:02 pm

snarlyjack wrote:
Fri Jan 19, 2018 10:29 am
I have pretty good coverages 100/300/50 to protect myself & my assets in case of a accident. I' am even thinking of a umbrella policy.
Is the "50" the property damage coverage? If so then you are under-insured.

The good news is that if you get an umbrella policy, it will require you to raise your basic auto coverages.
"Never underestimate one's capacity to overestimate one's abilities" - The Dunning-Kruger Effect

snarlyjack
Posts: 649
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Location: Montana

Re: Can You Say...Auto Insurance

Post by snarlyjack » Fri Jan 19, 2018 1:29 pm

Update,

I thought to myself who do I really like...
Warren Buffet & Berkshire Hathaway came to my mind.
I own a small part of Berkshire Hathaway in my TSM fund.
Might as well profit on my own policy.

I switched all my insurance to Geico. I ended
up with better coverages 300/300/100 for less than I was paying
& I can add a umbrella policy on top of it with my home owner
policy.

Not only do we need to have a really good portfolio but we
also need to protect ourselves & our portfolio. I feel good
about it. Better coverages, less money & more
protection to safeguard the portfolio. Works for me.

Thanks everyone for all your help & suggestions &
thank you Warren Buffett...(good doing business with you) :happy
+ it should help our TSM fund...

Wakefield1
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Joined: Mon Nov 14, 2016 10:10 pm

Re: Can You Say...Auto Insurance

Post by Wakefield1 » Fri Jan 19, 2018 4:16 pm

snarlyjack wrote:
Fri Jan 19, 2018 1:29 pm
Update,

I thought to myself who do I really like...
Warren Buffet & Berkshire Hathaway came to my mind.
I own a small part of Berkshire Hathaway in my TSM fund.
Might as well profit on my own policy.

I switched all my insurance to Geico. I ended
up with better coverages 300/300/100 for less than I was paying
& I can add a umbrella policy on top of it with my home owner
policy.

Not only do we need to have a really good portfolio but we
also need to protect ourselves & our portfolio. I feel good
about it. Better coverages, less money & more
protection to safeguard the portfolio. Works for me.

Thanks everyone for all your help & suggestions &
thank you Warren Buffett...(good doing business with you) :happy
+ it should help our TSM fund...
Sounds something like what happened when I switched from Allstate to State Farm.

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dm200
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Location: Washington DC area

Re: Can You Say...Auto Insurance

Post by dm200 » Fri Jan 19, 2018 4:31 pm

t885 wrote:
Fri Jan 19, 2018 12:24 pm
bottlecap wrote:
Fri Jan 19, 2018 10:36 am

If you get into a major collision, medical bills could easily eat up that $100,000 in coverage and then you will be threatened with paying the rest.
JT
Having high medical coverage on your auto policy is a waste of money if you have good primary medcial coverage.
Not necessarily. The risks, in my opinion, are injuries to passengers in your car. If a passenger incurs injury in your car, my understanding is that they would need to file a claim against you for being at fault for their injury. When you have medical payments - they just file a claim on that coverage.

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bottlecap
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Location: Tennessee

Re: Can You Say...Auto Insurance

Post by bottlecap » Fri Jan 19, 2018 5:00 pm

t885 wrote:
Fri Jan 19, 2018 12:24 pm
bottlecap wrote:
Fri Jan 19, 2018 10:36 am


If you get into a major collision, medical bills could easily eat up that $100,000 in coverage and then you will be threatened with paying the rest.

JT
Having high medical coverage on your auto policy is a waste of money if you have good primary medcial coverage.
I guarantee your health plan does don’t cover the person you injure.

JT

westrichj312
Posts: 132
Joined: Wed Jul 05, 2017 4:25 pm

Re: Can You Say...Auto Insurance

Post by westrichj312 » Fri Jan 19, 2018 5:25 pm

your best defense is to shop the policy every couple years. Having a degree does nothing for you. Most people like me just lie and tell them I have a masters degree there is no way for them to check and it gets you basically nothing anyways.

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Hodor
Posts: 224
Joined: Wed Jun 24, 2015 8:27 pm

Re: Can You Say...Auto Insurance

Post by Hodor » Fri Jan 19, 2018 5:29 pm

Auto insurers' costs have been going up for a few years now across the industry, and therefore so have the prices for consumers. Don't take it personally when your rate goes up at renewal. Just shop around to see if you can find a better price.

PFInterest
Posts: 1063
Joined: Sun Jan 08, 2017 12:25 pm

Re: Can You Say...Auto Insurance

Post by PFInterest » Fri Jan 19, 2018 6:00 pm

snarlyjack wrote:
Fri Jan 19, 2018 1:29 pm
Update,

I thought to myself who do I really like...
Warren Buffet & Berkshire Hathaway came to my mind.
I own a small part of Berkshire Hathaway in my TSM fund.
Might as well profit on my own policy.

I switched all my insurance to Geico. I ended
up with better coverages 300/300/100 for less than I was paying
& I can add a umbrella policy on top of it with my home owner
policy.

Not only do we need to have a really good portfolio but we
also need to protect ourselves & our portfolio. I feel good
about it. Better coverages, less money & more
protection to safeguard the portfolio. Works for me.

Thanks everyone for all your help & suggestions &
thank you Warren Buffett...(good doing business with you) :happy
+ it should help our TSM fund...
Literally just did the same thing, you can search my post about it.

Finridge
Posts: 331
Joined: Mon May 16, 2011 7:27 pm

Re: Can You Say...Auto Insurance

Post by Finridge » Fri Jan 19, 2018 10:21 pm

snarlyjack wrote:
Fri Jan 19, 2018 10:29 am
I have pretty good coverages 100/300/50 to protect myself & my
assets in case of a accident. I' am even thinking of a umbrella policy.

The problem is my premiums keep going up with my big national company.
I just received in the mail yesterday my renewal notice. From what I
can tell the premium is going up 16%.

This is with a high credit score. No tickets or accidends. College degree.
Nice car with airbags & anti lock brakes. It's pretty frustrating. It's hard
to really fund my mutual funds when my expenses keep going up.

Is anyone else having this problem? Suggestions would be welcome.
I talked to my agent yesterday & he told me that all the insurance
companies are raising their rates due to natural disasters & accidents.

Thanks for letting me rant...any suggestions?
Do what I did last month. First I contacted my current insurance--tell them that you are re-evaluating your coverage, and want to make sure you are getting the best deal they can give you. Let them know that you will be shopping your coverage. Then contact 5 other insurance companies and get quotes from them. Go with the one that gives you the best deal. I'm saving hundreds of dollars. I plan to do this at least every couple of years.

denovo
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Joined: Sun Oct 13, 2013 1:04 pm

Re: Can You Say...Auto Insurance

Post by denovo » Sat Jan 20, 2018 12:25 am

snarlyjack wrote:
Fri Jan 19, 2018 10:29 am
I have pretty good coverages 100/300/50 to protect myself & my
assets in case of a accident. I' am even thinking of a umbrella policy.

Suggestions would be welcome.

Thanks for letting me rant...any suggestions?
Shop around for a better rate. You don't need an agent for this. You can do it online by yourself.
"Don't trust everything you read on the Internet"- Abraham Lincoln

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LadyGeek
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Re: Can You Say...Auto Insurance

Post by LadyGeek » Sat Jan 20, 2018 9:28 am

This thread is now in the Personal Finance (Not Investing) forum (insurance).
Wiki To some, the glass is half full. To others, the glass is half empty. To an engineer, it's twice the size it needs to be.

TheOscarGuy
Posts: 454
Joined: Sat Oct 06, 2012 1:10 pm
Location: MA

Re: Can You Say...Auto Insurance

Post by TheOscarGuy » Sat Jan 20, 2018 9:35 am

snarlyjack wrote:
Fri Jan 19, 2018 10:29 am
I have pretty good coverages 100/300/50 to protect myself & my
assets in case of a accident. I' am even thinking of a umbrella policy.

The problem is my premiums keep going up with my big national company.
I just received in the mail yesterday my renewal notice. From what I
can tell the premium is going up 16%.

This is with a high credit score. No tickets or accidends. College degree.
Nice car with airbags & anti lock brakes. It's pretty frustrating. It's hard
to really fund my mutual funds when my expenses keep going up.

Is anyone else having this problem? Suggestions would be welcome.
I talked to my agent yesterday & he told me that all the insurance
companies are raising their rates due to natural disasters & accidents.

Thanks for letting me rant...any suggestions?

Never had my quotes go up for last 10 years, by a significant percentage. It did last year and I changed my insurance company. Thanks to BH I used to quote policies once a year and the exercise paid off after 10 attempts ;-)

t885
Posts: 33
Joined: Sun Dec 24, 2017 3:56 pm

Re: Can You Say...Auto Insurance

Post by t885 » Tue Jan 23, 2018 8:21 am

bottlecap wrote:
Fri Jan 19, 2018 5:00 pm
t885 wrote:
Fri Jan 19, 2018 12:24 pm
bottlecap wrote:
Fri Jan 19, 2018 10:36 am


If you get into a major collision, medical bills could easily eat up that $100,000 in coverage and then you will be threatened with paying the rest.

JT
Having high medical coverage on your auto policy is a waste of money if you have good primary medcial coverage.
I guarantee your health plan does don’t cover the person you injure. -You are correct

JT
Medical coverage provided on your auto policy is for the insured driver only. Any medical claims by a passenger would be filed against the liability portion of the policy.

Medical coverage on the auto policy is first to pay a auto related medical claim once the that coverage is exhausted then the primary medical plan kicks in.

The only time it makes sense to carry more the the state minimum limit(medical only) on a auto policy is if the primary medical policy has a high deductible or co-pay.

t885
Posts: 33
Joined: Sun Dec 24, 2017 3:56 pm

Re: Can You Say...Auto Insurance

Post by t885 » Tue Jan 23, 2018 8:25 am

dm200 wrote:
Fri Jan 19, 2018 4:31 pm
t885 wrote:
Fri Jan 19, 2018 12:24 pm
bottlecap wrote:
Fri Jan 19, 2018 10:36 am

If you get into a major collision, medical bills could easily eat up that $100,000 in coverage and then you will be threatened with paying the rest.
JT
Having high medical coverage on your auto policy is a waste of money if you have good primary medcial coverage.
Not necessarily. The risks, in my opinion, are injuries to passengers in your car. If a passenger incurs injury in your car, my understanding is that they would need to file a claim against you for being at fault for their injury. When you have medical payments - they just file a claim on that coverage.
Medical coverage provided by your auto policy is for the "named insured only" including immediate family members.
If a passenger is injured and wishes to file a claim against the "named insured" he/she must do so against the liability portion of the policy.

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JoMoney
Posts: 4804
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Re: Can You Say...Auto Insurance

Post by JoMoney » Tue Jan 23, 2018 8:42 am

snarlyjack wrote:
Fri Jan 19, 2018 10:29 am
...The problem is my premiums keep going up ....
Shop around every time your policy comes up for renewal. Insurance companies do not necessarily reward "loyalty".

https://www.npr.org/2015/05/08/40359823 ... n-cost-you
"To achieve satisfactory investment results is easier than most people realize; to achieve superior results is harder than it looks." - Benjamin Graham

boglegirl
Posts: 210
Joined: Mon Dec 17, 2012 1:41 pm

Re: Can You Say...Auto Insurance

Post by boglegirl » Tue Jan 23, 2018 9:09 am

westrichj312 wrote:
Fri Jan 19, 2018 5:25 pm
your best defense is to shop the policy every couple years. Having a degree does nothing for you. Most people like me just lie and tell them I have a masters degree there is no way for them to check and it gets you basically nothing anyways.
A degree can make a difference with some insurers. When we had a vacation property policy with Allstate a while back, the agent asked a bunch of questions to get us the lowest rate. They had discounts for education level and professional memberships. What finally saved us the most money was that we changed the primary policyholder from me to my husband, because he was 50 and I was not!

TOJ
Posts: 348
Joined: Wed Mar 02, 2016 9:19 pm

Re: Can You Say...Auto Insurance

Post by TOJ » Tue Jan 23, 2018 9:50 am

The solution is simple: get quotes online from all the major companies. It's easy. Geico played this game with me every year. Sometimes even their slight rate increases left them competitive, but last month they raised it again and Progressive had them beat by 20%. The companies depend on most people not going through the "hassle" of switching, despite it being very simple. Or most people not understanding there's no contract involved; it's easy to switch mid-policy, too. Pay in full with a cash-back credit card for a cherry on top.

There is no incentive to be loyal to auto insurance companies. I suspect within a couple hours you could have a quote from this entire list:

AAA
Allstate
Geico
Nationwide
Progressive
Travelers
State Farm
Liberty Mutual
Amica
Metlife

pshonore
Posts: 6233
Joined: Sun Jun 28, 2009 2:21 pm

Re: Can You Say...Auto Insurance

Post by pshonore » Tue Jan 23, 2018 9:57 am

t885 wrote:
Tue Jan 23, 2018 8:25 am
dm200 wrote:
Fri Jan 19, 2018 4:31 pm
t885 wrote:
Fri Jan 19, 2018 12:24 pm
bottlecap wrote:
Fri Jan 19, 2018 10:36 am

If you get into a major collision, medical bills could easily eat up that $100,000 in coverage and then you will be threatened with paying the rest.
JT
Having high medical coverage on your auto policy is a waste of money if you have good primary medcial coverage.
Not necessarily. The risks, in my opinion, are injuries to passengers in your car. If a passenger incurs injury in your car, my understanding is that they would need to file a claim against you for being at fault for their injury. When you have medical payments - they just file a claim on that coverage.
Medical coverage provided by your auto policy is for the "named insured only" including immediate family members.
If a passenger is injured and wishes to file a claim against the "named insured" he/she must do so against the liability portion of the policy.
I don't believe that's true although it might vary by state. The problem is most "Medical" has a low limit (5K, 10K etc) and its easy to blow right through that.

As an example, here's definition for Medical Payments coverage in my Connecticut USAA Policy:
B. "Covered person" as used in this Part
means:

1. You or any family member while
occupying any auto.

2. Any other person while occupying
your covered auto.

3. You or any family member while not
occupying a motor vehicle if injured by:
a. A motor vehicle designed for use
b. A miscellaneous vehicle; or
c. A trailer.

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dm200
Posts: 15712
Joined: Mon Feb 26, 2007 2:21 pm
Location: Washington DC area

Re: Can You Say...Auto Insurance

Post by dm200 » Tue Jan 23, 2018 10:20 am

pshonore wrote:
Tue Jan 23, 2018 9:57 am
t885 wrote:
Tue Jan 23, 2018 8:25 am
dm200 wrote:
Fri Jan 19, 2018 4:31 pm
t885 wrote:
Fri Jan 19, 2018 12:24 pm
bottlecap wrote:
Fri Jan 19, 2018 10:36 am

If you get into a major collision, medical bills could easily eat up that $100,000 in coverage and then you will be threatened with paying the rest.
JT
Having high medical coverage on your auto policy is a waste of money if you have good primary medcial coverage.
Not necessarily. The risks, in my opinion, are injuries to passengers in your car. If a passenger incurs injury in your car, my understanding is that they would need to file a claim against you for being at fault for their injury. When you have medical payments - they just file a claim on that coverage.
Medical coverage provided by your auto policy is for the "named insured only" including immediate family members.
If a passenger is injured and wishes to file a claim against the "named insured" he/she must do so against the liability portion of the policy.
I don't believe that's true although it might vary by state. The problem is most "Medical" has a low limit (5K, 10K etc) and its easy to blow right through that.

As an example, here's definition for Medical Payments coverage in my Connecticut USAA Policy:
B. "Covered person" as used in this Part
means:

1. You or any family member while
occupying any auto.

2. Any other person while occupying
your covered auto.


3. You or any family member while not
occupying a motor vehicle if injured by:
a. A motor vehicle designed for use
b. A miscellaneous vehicle; or
c. A trailer.
Never collected, but this is my understanding and why we carried Medical payments when we had young child(ren) - in case a kid got a bump in the carpool, etc. For small matters, it seemed to me, this low limit coverage would reduce the need for the injured passenger (minor) to establish the liability of the driver of the car in which they were riding.

pshonore
Posts: 6233
Joined: Sun Jun 28, 2009 2:21 pm

Re: Can You Say...Auto Insurance

Post by pshonore » Tue Jan 23, 2018 10:32 am

You are correct and its same rationale for Med Payments on Homeowners.

t885
Posts: 33
Joined: Sun Dec 24, 2017 3:56 pm

Re: Can You Say...Auto Insurance

Post by t885 » Tue Jan 23, 2018 12:01 pm

dm200 wrote:
Tue Jan 23, 2018 10:20 am
pshonore wrote:
Tue Jan 23, 2018 9:57 am
t885 wrote:
Tue Jan 23, 2018 8:25 am
dm200 wrote:
Fri Jan 19, 2018 4:31 pm
t885 wrote:
Fri Jan 19, 2018 12:24 pm

Having high medical coverage on your auto policy is a waste of money if you have good primary medcial coverage.
Not necessarily. The risks, in my opinion, are injuries to passengers in your car. If a passenger incurs injury in your car, my understanding is that they would need to file a claim against you for being at fault for their injury. When you have medical payments - they just file a claim on that coverage.
Medical coverage provided by your auto policy is for the "named insured only" including immediate family members.
If a passenger is injured and wishes to file a claim against the "named insured" he/she must do so against the liability portion of the policy.
I don't believe that's true although it might vary by state. The problem is most "Medical" has a low limit (5K, 10K etc) and its easy to blow right through that.

As an example, here's definition for Medical Payments coverage in my Connecticut USAA Policy:
B. "Covered person" as used in this Part
means:

1. You or any family member while
occupying any auto.

2. Any other person while occupying
your covered auto.


3. You or any family member while not
occupying a motor vehicle if injured by:
a. A motor vehicle designed for use
b. A miscellaneous vehicle; or
c. A trailer.
Never collected, but this is my understanding and why we carried Medical payments when we had young child(ren) - in case a kid got a bump in the carpool, etc. For small matters, it seemed to me, this low limit coverage would reduce the need for the injured passenger (minor) to establish the liability of the driver of the car in which they were riding.
I stand corrected on who is covered in the vehicle. That being said. Once the medical coverage on the auto policy is exhausted the primary medical policy kicks in. If the passenger is a non family member the passengers primary medical policy woud pick up where the auto policy coverge ended. If the passengers primary policy carrier chooses to recover their costs they would do so by subrogation against the "insureds vehcile" liability portion of the policy.
This rarely happens since the passengers insurance compay would need to prove that gross negligence on the driver caused the accident, hence causing the injury.

Bottom line in my opinion. Excess medical coverage in most cases on a auto policy is a waste of money.

YMMV

And I did sleep at a Holiday Inn last night.....

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Alexa9
Posts: 1015
Joined: Tue Aug 30, 2016 9:41 am

Re: Can You Say...Auto Insurance

Post by Alexa9 » Tue Jan 23, 2018 12:09 pm

I am amazed at the costs as well.

1. Drive a car worth less than $10k (I'll be there in a couple years)
2. Drop full coverage and drive like a grandma (I prefer peace of mind)
3. Shop around for insurance (I will do this when I'm up for renewal)
4. Call your insurance and see if they can give you a better price (One share of BRK.B for Geico, etc.)

jbmitt
Posts: 276
Joined: Mon Jul 14, 2008 1:00 am

Re: Can You Say...Auto Insurance

Post by jbmitt » Tue Jan 23, 2018 12:23 pm

dm200 wrote:
Tue Jan 23, 2018 10:20 am
pshonore wrote:
Tue Jan 23, 2018 9:57 am
t885 wrote:
Tue Jan 23, 2018 8:25 am
dm200 wrote:
Fri Jan 19, 2018 4:31 pm
t885 wrote:
Fri Jan 19, 2018 12:24 pm

Having high medical coverage on your auto policy is a waste of money if you have good primary medcial coverage.
Not necessarily. The risks, in my opinion, are injuries to passengers in your car. If a passenger incurs injury in your car, my understanding is that they would need to file a claim against you for being at fault for their injury. When you have medical payments - they just file a claim on that coverage.
Medical coverage provided by your auto policy is for the "named insured only" including immediate family members.
If a passenger is injured and wishes to file a claim against the "named insured" he/she must do so against the liability portion of the policy.
I don't believe that's true although it might vary by state. The problem is most "Medical" has a low limit (5K, 10K etc) and its easy to blow right through that.

As an example, here's definition for Medical Payments coverage in my Connecticut USAA Policy:
B. "Covered person" as used in this Part
means:

1. You or any family member while
occupying any auto.

2. Any other person while occupying
your covered auto.


3. You or any family member while not
occupying a motor vehicle if injured by:
a. A motor vehicle designed for use
b. A miscellaneous vehicle; or
c. A trailer.
Never collected, but this is my understanding and why we carried Medical payments when we had young child(ren) - in case a kid got a bump in the carpool, etc. For small matters, it seemed to me, this low limit coverage would reduce the need for the injured passenger (minor) to establish the liability of the driver of the car in which they were riding.
The last two items are correct. As an adjuster, medical payments coverage allowed me to resolve things without having to create bodily injury claims or establish negligence. For example, your dog bites your friend. Your friend goes to the hospital and just wants their bill paid or their deductible paid. Medical payments coverage allowed me to pay those without creating an injury claim which requires determining fault and is usually less favorable from a rating/premium standpoint.

Medical payments coverage did not allow for me to pay for pain and suffering. Medical payments coverage was extremely helpful in resolving routine slip and falls, minor injuries, and bills for people not trying to collect pain and suffering. Without medical payments coverage, you skip right to bodily injury claims and legal liability. Sometimes you can have no legal liability, and if you have no medical payments coverage, you can have a very upset friend or family member with a bill they don't feel is their responsibility. Medical payments coverage made it much easier to keep everyone happy.

Med pay coverage is usually available for all occupants in an insured vehicle. So if there is another driver that is at fault, your passengers can get help with their bills until they settle with the at fault party. It also makes them less likely to come after you, the driver, and say that you could have, would have or should have responded differently to prevent the accident, and that you may have responsibility.

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dm200
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Re: Can You Say...Auto Insurance

Post by dm200 » Tue Jan 23, 2018 12:45 pm

The last two items are correct. As an adjuster, medical payments coverage allowed me to resolve things without having to create bodily injury claims or establish negligence. For example, your dog bites your friend. Your friend goes to the hospital and just wants their bill paid or their deductible paid. Medical payments coverage allowed me to pay those without creating an injury claim which requires determining fault and is usually less favorable from a rating/premium standpoint.

Medical payments coverage did not allow for me to pay for pain and suffering. Medical payments coverage was extremely helpful in resolving routine slip and falls, minor injuries, and bills for people not trying to collect pain and suffering. Without medical payments coverage, you skip right to bodily injury claims and legal liability. Sometimes you can have no legal liability, and if you have no medical payments coverage, you can have a very upset friend or family member with a bill they don't feel is their responsibility. Medical payments coverage made it much easier to keep everyone happy.

Med pay coverage is usually available for all occupants in an insured vehicle. So if there is another driver that is at fault, your passengers can get help with their bills until they settle with the at fault party. It also makes them less likely to come after you, the driver, and say that you could have, would have or should have responded differently to prevent the accident, and that you may have responsibility.
Yes - this is my understanding ..

boglerdude
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Re: Can You Say...Auto Insurance

Post by boglerdude » Wed Jan 24, 2018 5:50 am

Med pay is also cheap to buy.

But what about the risk of getting your rates increased if you use it. Is there some equation the insurance companies use, or laws regarding how much they are allowed to raise rates if you make claims

motorcyclesarecool
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Re: Can You Say...Auto Insurance

Post by motorcyclesarecool » Wed Jan 24, 2018 7:07 am

t885 wrote:
Tue Jan 23, 2018 12:01 pm
Bottom line in my opinion. Excess medical coverage in most cases on a auto policy is a waste of money.
In my motorcycling days, I carried million dollar medical. It was reassuring to have, and allowed me to focus on and enjoy the act of riding. When I took a spill far from home and took a ride to the hospital, at least I had zero worries about how I’d pay for it all.
Once I had dependents, they were always on my mind, and motorcycling stopped being fun for me, so I sold my beloved BMW. I see no call for excessive medical coverage for ordinary cars, but motorcyclists could well benefit. For me, riding a motorcycle was an interesting exercise in understanding my risk tolerance.
Understand that choosing an HDHP is very much a "red pill" approach. Most would rather pay higher premiums for a $20 copay per visit. They will think you weird for choosing an HSA.

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Re: Can You Say...Auto Insurance

Post by forgeblast » Wed Jan 24, 2018 7:41 am

Our home insurance went up, the local insurance agent we work with was not happy so they called to say they would be shopping around for us. I mentioned that our car insurance was going to be up soon, and if we could get a better deal we would be willing to bundle. She took the information and found out that she could save us 3k a year. Our unitrin aka kemper direct kept inching up and we were paying 280 a month for two cars....with bundling through progressive we are paying $520 for 6 months plus getting a bigger discount on our home insurance. Might pay to shop around a bit.

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