Auto Insurance: worth it self-insure?

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creant
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Auto Insurance: worth it self-insure?

Post by creant »

For someone who can afford a replacement car if one's car is totaled, and also has robust umbrella/health/disability/life insurance coverage, are there any reasons to buy Collision, Comprehensive, Uninsured Bodily, or Uninsured Property coverage? Assuming a 10 year old, 5 year old, and brand new cars.

For instance, in an accident, will your insurance company will do all of the work and deal with the other driver/insurance company, instead of you? Will your insurance company "fight" the other side more, instead of you? Etc.
jpelder
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Re: Auto Insurance: worth it self-insure?

Post by jpelder »

I can't really afford to self-insure, but...

I will always prefer to have my insurance company subrogate any claims, rather than having to deal with whatever insurance company the person who caused the wreck uses. My wife got rear-ended 6-7 years ago, and dealing with State Farm was much simpler than the cheapo insurer that the guy who hit her used. Even on an 11-year-old car worth $5000 or so, my collision, comprehensive, and uninsured motorist coverage was so cheap (maybe $150 per year) that it didn't seem worthwhile to cancel.
sc9182
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Re: Auto Insurance: worth it self-insure?

Post by sc9182 »

Hope this car is paid-off :wink:

With used car prices so high (relatively), parts-supply limited (and parts-prices high), and with prevalent Cat-converters thefts we hear these days -- definitely worth keeping Comprehensive - 250 deductible. Keep Collision $1000 (or even higher).

The other day, lowest price found for a good car-battery - was $140 - $170 or higher. Things are not cheap any longer.
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HueyLD
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Re: Auto Insurance: worth it self-insure?

Post by HueyLD »

creant wrote: Thu Oct 06, 2022 10:34 am For someone who can afford a replacement car if one's car is totaled, and also has robust umbrella/health/disability/life insurance coverage, are there any reasons to buy Collision, Comprehensive, Uninsured Bodily, or Uninsured Property coverage? Assuming a 10 year old, 5 year old, and brand new cars.

For instance, in an accident, will your insurance company will do all of the work and deal with the other driver/insurance company, instead of you? Will your insurance company "fight" the other side more, instead of you? Etc.
Your umbrella insurance will be cancelled unless you maintain certain minimum liability insurance coverage in underlined policies such as auto and homeowner insurance.

Nobody can self insure for potential liability unless you are dead broke and thus judgment proof.
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Re: Auto Insurance: worth it self-insure?

Post by KneeReplacementTutor »

creant wrote: Thu Oct 06, 2022 10:34 am For someone who can afford a replacement car if one's car is totaled, and also has robust umbrella/health/disability/life insurance coverage, are there any reasons to buy Collision, Comprehensive, Uninsured Bodily, or Uninsured Property coverage? Assuming a 10 year old, 5 year old, and brand new cars.

For instance, in an accident, will your insurance company will do all of the work and deal with the other driver/insurance company, instead of you? Will your insurance company "fight" the other side more, instead of you? Etc.
For clarification, are you proposing to carry a liability only automobile insurance policy then?
homebuyer6426
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Re: Auto Insurance: worth it self-insure?

Post by homebuyer6426 »

Yes, I carry the minimum. Assuming the insurer is correctly estimating the risk, the expected return on insurance is always negative for the consumer.

Psychologically, buying more insurance can be a benefit for some people.
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CaptainT
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Re: Auto Insurance: worth it self-insure?

Post by CaptainT »

In some states you are required to keep some insurance
livesoft
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Re: Auto Insurance: worth it self-insure?

Post by livesoft »

Our auto insurance is so inexpensive that it doesn't make sense to not have it.
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friedplantain
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Re: Auto Insurance: worth it self-insure?

Post by friedplantain »

creant wrote: Thu Oct 06, 2022 10:34 am For someone who can afford a replacement car if one's car is totaled, and also has robust umbrella/health/disability/life insurance coverage, are there any reasons to buy Collision, Comprehensive, Uninsured Bodily, or Uninsured Property coverage? Assuming a 10 year old, 5 year old, and brand new cars.

For instance, in an accident, will your insurance company will do all of the work and deal with the other driver/insurance company, instead of you? Will your insurance company "fight" the other side more, instead of you? Etc.
I have done exactly as you are proposing. I am a big fan of self-insurance / risk-retention and insurance minimalism when I can afford to cover the risks myself. My automobiles are fully paid and I am able to replace them out of pocket if necessary. I hold robust personal liability policies (auto liability and umbrella) and hold separate policies for health, disability, life, etc. I do not carry any automobile specific coverages (collision and comprehensive) or any no fault coverages (medical costs, etc).
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Re: Auto Insurance: worth it self-insure?

Post by galawdawg »

creant wrote: Thu Oct 06, 2022 10:34 am For instance, in an accident, will your insurance company will do all of the work and deal with the other driver/insurance company, instead of you? Will your insurance company "fight" the other side more, instead of you? Etc.
The obligations of your insurer are governed by the terms of your policy and applicable state law and regulation. So one should read and understand the obligations of the insurer as set forth in the policy...that is their legal agreement with you.

For example, a typical policy might include language such as "The attached Declarations describe the automobile(s) we insure and the Coverages and Limits of Liability for which you have paid a premium. We agree to insure the described automobile(s) for those Coverages and Limits of Liability subject to the the terms and conditions of this policy." The legal import of this language is that your insurer only insures the particular vehicles listed in the declarations page and only for those coverages that you select and pay for. The insurer has no duty to pay damages, settle or defend, or take any other action whatsoever when there is no coverage which applies to the occurrence.

Very few major insurers of which I am aware will take any action in regards to an occurrence for which the insured has declined coverage. A consumer who has only selected and paid for liability coverage for their vehicle (which appears to be the case as to OP) is not entitled to anything from their insurance provider when they are not liable for someone else's damage or injury.

So if you want your insurer to work on your behalf if another person causes damage to your vehicle, then you should have coverage for collision, comprehensive, uninsured motorist and underinsured motorist. If you decline those coverages, you have assumed the full risk of any damages or loss to your vehicle and may be required to file a claim with the at-fault driver's insurer and/or pursue legal action against that driver and/or the owner of the vehicle they were operating if you want to be "made whole".
beardsicles
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Re: Auto Insurance: worth it self-insure?

Post by beardsicles »

livesoft wrote: Thu Oct 06, 2022 11:39 am Our auto insurance is so inexpensive that it doesn't make sense to not have it.
Yeah, basically this.

Even if the expected return is negative, that's literally not the point of insurance. The point of insurance is..insurance. I don't overbuy where it doesn't matter, I can afford to replace my car. But I do buy appropriate levels of insurance to cover Uninsured Bodily, or Uninsured Property, etc. The potential expense there is effectively limitless.
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Kagord
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Re: Auto Insurance: worth it self-insure?

Post by Kagord »

Personally, I set the limit to around $10K before I remove collision and comprehensive. This coverage is usually pretty cheap with old cars, but it does add up over time if you never use it, and I don't mind dents. Edit: Especially if you own a lot of vehicles, rolling the dice and covering collision/comprehensive yourself can be cost effective

From experience, if someone outside the family is ever in your vehicle, you may want to keep the uninsured stuff. Especially if you have teenage drivers, best to hand that stuff off to the insurance company.

Also, I wouldn't call it self insurance, it's just choosing whether you want collision/comprehensive or not. Liability/Umbrella is really where the risk management is.
Last edited by Kagord on Thu Oct 06, 2022 1:00 pm, edited 1 time in total.
dbr
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Re: Auto Insurance: worth it self-insure?

Post by dbr »

Yes, lots of people no longer carry collision, for example to replace their own car when it is worth very little. That is not at all self insuring your auto insurance. Liability is a big deal.

Probably one of the more maddening auto accidents you can have is one that totals your old car at almost no insurance payout and now you have to find a replacement car.
Chuckles960
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Re: Auto Insurance: worth it self-insure?

Post by Chuckles960 »

The objective rule is, never buy insurance for losses you can afford. But the subjective rule is, buy if it makes you feel better. Can't put a price on mental well-being.
MathWizard
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Re: Auto Insurance: worth it self-insure?

Post by MathWizard »

Except for the few times that I had to take to a loan for a car (3 times early on),
I have never carried more than liability.

I do carry more than the minimum however.
Liability costs are not as controllable as replacement car costs.
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Re: Auto Insurance: worth it self-insure?

Post by sc9182 »

Chuckles960 wrote: Thu Oct 06, 2022 1:59 pm The objective rule is, never buy insurance for losses you can afford. But the subjective rule is, buy if it makes you feel better. Can't put a price on mental well-being.
if your area has bad drivers or bad traffic (or worst - high thefts) — better to have it covered fully/mostly .. (we are not talking Clunkers here).

You may be able to afford losses for one time, or possibly twice .. but not repeatedly. (for typical life insurance, disability and home insurance - your claims frequency could be lot lower; but auto-claims could be pretty lumpy at times)
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Ray_McKigney
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Re: Auto Insurance: worth it self-insure?

Post by Ray_McKigney »

sc9182 wrote: Thu Oct 06, 2022 2:40 pm
Chuckles960 wrote: Thu Oct 06, 2022 1:59 pm The objective rule is, never buy insurance for losses you can afford. But the subjective rule is, buy if it makes you feel better. Can't put a price on mental well-being.
if your area has bad drivers or bad traffic (or worst - high thefts) — better to have it covered fully/mostly .. (we are not talking Clunkers here).
It's only "better" economically if your claim payouts exceed your premiums.

Insurers know "if your area has bad drivers or bad traffic (or worst - high thefts)" and will set its premiums accordingly.
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Svensk Anga
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Re: Auto Insurance: worth it self-insure?

Post by Svensk Anga »

galawdawg wrote: Thu Oct 06, 2022 12:29 pm
So if you want your insurer to work on your behalf if another person causes damage to your vehicle, then you should have coverage for collision, comprehensive, uninsured motorist and underinsured motorist. If you decline those coverages, you have assumed the full risk of any damages or loss to your vehicle and may be required to file a claim with the at-fault driver's insurer and/or pursue legal action against that driver and/or the owner of the vehicle they were operating if you want to be "made whole".
If one has to pursue legal action against an at-fault driver and his insurer, presumably one would want to hire a lawyer, with no assurance that you will be able to recover your damages plus expenses. So part of collision insurance is effectively legal assistance in recovering damages, not just the cost to repair/replace, right?

If one rents cars with some frequency, keeping collision/comprehensive on at least one car may be more cost effective than buying the rental's insurance.
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creant
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Re: Auto Insurance: worth it self-insure?

Post by creant »

Liability only, at higher limits to satisfy umbrella requirements. Cars paid off.

Follow up questions:

How much of a time saver is it to have your own insurance subrogate if one had comp/collision/UM (vs doing it yourself)? I've never been in an accident, so this is not clear to me.

For Comprehensive $250, Collision $1000 deductibles, Uninsured Property (no Bodily) $25,000 coverage. Are these good deals for someone who drives much less than average?

$450 on top of liability per year to cover $10,000 residual value of car
$500 on top of liability per year to cover $30,000 residual value of car

Trying to balance the concepts of "not buying insurance you don't need" vs. "pay a small amount to smooth risk and save time but only if a good deal".
Last edited by creant on Thu Oct 06, 2022 3:17 pm, edited 1 time in total.
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creant
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Re: Auto Insurance: worth it self-insure?

Post by creant »

Svensk Anga wrote: Thu Oct 06, 2022 3:09 pm If one rents cars with some frequency, keeping collision/comprehensive on at least one car may be more cost effective than buying the rental's insurance.
Actually, my thought was, this is a reason *not* to keep C/C.

My understanding is, if one has a credit card that provides Secondary Insurance for Rentals, "Secondary coverage can serve as primary coverage for you since you don’t have a personal policy that kicks in first." (https://upgradedpoints.com/credit-cards ... -insurance)
DoubleComma
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Re: Auto Insurance: worth it self-insure?

Post by DoubleComma »

creant wrote: Thu Oct 06, 2022 3:14 pm Liability only, at higher limits to satisfy umbrella requirements. Cars paid off.

Follow up questions:

How much of a time saver is it to have your own insurance subrogate if one had comp/collision/UM (vs doing it yourself)? I've never been in an accident, so this is not clear to me.

For Comprehensive $250, Collision $1000 deductibles, Uninsured Property (no Bodily) $25,000 coverage. Are these good deals for someone who drives much less than average?

$450 on top of liability per year to cover $10,000 residual value of car
$500 on top of liability per year to cover $30,000 residual value of car

Trying to balance the concepts of "not buying insurance you don't need" vs. "pay a small amount to smooth risk and save time but only if a good deal".
For me, more than time saved subrogating, is actually being able to get the fix made quicker. If you have comp/collision, your insurance will step in a fix your car then collect back from the other insurance company, opposed to you negotiating with the other party directly.

Unless of course you are suggesting you will fix your car out of your own pocket and then wait on reimbursement ... hoping your fix is the same value that other company is willing to pay.

For me its worth having full coverage.
sc9182
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Re: Auto Insurance: worth it self-insure?

Post by sc9182 »

Ray_McKigney wrote: Thu Oct 06, 2022 3:07 pm
sc9182 wrote: Thu Oct 06, 2022 2:40 pm
Chuckles960 wrote: Thu Oct 06, 2022 1:59 pm The objective rule is, never buy insurance for losses you can afford. But the subjective rule is, buy if it makes you feel better. Can't put a price on mental well-being.
if your area has bad drivers or bad traffic (or worst - high thefts) — better to have it covered fully/mostly .. (we are not talking Clunkers here).
It's only "better" economically if your claim payouts exceed your premiums.

Insurers know "if your area has bad drivers or bad traffic (or worst - high thefts)" and will set its premiums accordingly.
Heh - if we knew apriori whether we will have a claim and or -- how frequently -- I sure can value provided by "insurance" C/C/UM coverages Vs. its Cost Vs. Peace of Mind it could provides.
Nope - can't figure claims-payout value, until after the fact.

By the meaning of "your area has bad drivers or bad traffic" -- your living area in-itself is not referred. Say, you go to one Ball-game, or Football game - and often forced to park at not-so-safe places. Your risk might be a bit higher than folks who simply office-commute (or work-remote), and keep their autos in garage most of the time. So - risk goes to personal level (in addition to figuring stats at group/aggregate levels).

Luckly - if you don't have Loan on that vehicle (OP didn't seem to answer that) -- most likely you are NOT forced to carry C/C/UM .. depending on your state/local laws., so nobody forcing those coverages on you - its a choice - you decide.
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Re: Auto Insurance: worth it self-insure?

Post by BolderBoy »

creant wrote: Thu Oct 06, 2022 3:14 pm How much of a time saver is it to have your own insurance subrogate if one had comp/collision/UM (vs doing it yourself)? I've never been in an accident, so this is not clear to me.
If it is you personally against their insurance company, they hold all the cards. Is that the gambling game you want to play?

I tried it once against an out-of-state driver who was ticketed in my state. His insurance company jerked me around for 6 months so I finally sued him. I had to drive to his state for the trial (he obviously figured I would be a no-show) which lasted about 10 minutes; the judge found entirely in my favor to the astonishment of the other driver. When I got home I faxed a copy of the judgment to his insurance company and they overnighted full payment for my loss.

It wasn't worth the time and energy I put into it.

If you have your insurer do the dirty work at least the playing field is level.
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Re: Auto Insurance: worth it self-insure?

Post by tashnewbie »

creant wrote: Thu Oct 06, 2022 3:14 pm Uninsured Property (no Bodily) $25,000 coverage. Are these good deals for someone who drives much less than average?
If you're going to carry UM/UIM coverage, I would absolutely have BI coverage. You've said you can afford to replace the vehicles, which means PD coverage is less valuable to you. To me, the potential downside is much greater with bodily injury caused by other drivers. I would want my insurer to pay up to the policy limits towards the goal of making me whole (or mitigating the impact) if I'm injured by an uninsured or underinsured driver.
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Re: Auto Insurance: worth it self-insure?

Post by tj »

My car was totalled 3 months ago. Insurance company paid me well more than what I had paid for the car 3 years ago - and that's with the deduction for my $1000 deductible that hasnt been recovered from at fault driver yet.

I also have Uninsured Motorist Bodily Injury coverage which will pay out - it will mostly reimburse my health insurer, but I should get some pain and suffering. Uninsured Motorist Proeprty Damage does not exist in my state.


The payout from this one claim alone is probably more than all the auto insurance premiums i've paid in my 15 or so years of being an independent adult. I'm happy I had the coverage regardless of "if I could have afforded to self insure"

Car accidents are dumb luck and the premiums aren't bad unless you live in certain places like Florida.
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Re: Auto Insurance: worth it self-insure?

Post by ncbill »

Here comprehensive coverage is cheap, so I keep it even on vehicles where I've dropped collision.

By cheap I mean under $5/month for most of my vehicles with only a $100 deductible.

Paid for ~$3,000 in repairs a few years ago when a deer crossed three lanes to commit suicide on the car my kid was driving.

To get umbrella with my insurer I had to raise my auto limits to $500k/$500k, which includes $500k UM/UIM.

Don't currently pay for extra UM/UIM on the umbrella, but I'm considering adding another $500k UM/UIM there.
Last edited by ncbill on Fri Oct 07, 2022 6:09 pm, edited 1 time in total.
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Re: Auto Insurance: worth it self-insure?

Post by whodidntante »

HueyLD wrote: Thu Oct 06, 2022 11:06 am Nobody can self insure for potential liability unless you are dead broke and thus judgment proof.
Why not? Insurance coverage is not unlimited.
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Re: Auto Insurance: worth it self-insure?

Post by whodidntante »

My insurance company is... well, I don't what they are like. I've never filed a claim.

It's reasonable to self-insure if the possible loss isn't that big a deal for you. If it would change your plans in a significant way, you should consider buying insurance.
cpumechanic
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Re: Auto Insurance: worth it self-insure?

Post by cpumechanic »

I find this thread intriguing.

My insurer Geico.. has increased my auto insurance by 55% in the last 12 months.

When I call and ask them why they say "It's not your fault" its just that the state has seen higher expenses and we need to recover those.

I have 5 vehicles on the policy.... 1 that I just took off, 1 that is driven 4000 miles per year in Summer time only with the top down and it's not raining. A 2006 pick up that goes 60 miles south once or twice a year, and then is used to transport trash to the local drop off 2 miles down the road.

There are 2 vehicles out of 4 that are actually driven > 5K miles per year.

My biggest fear are:

A Uninsured Drivers (I pay extra for "no tort" coverage in my state)
B A collision that is at fault and results in a huge settlement that makes my life miserable.

Currently I have 250/500 Liability to cover for that unlikely event.

I also own a motor home that would cost $100K to replace if totaled in an "at fault" accident without collision.

I currently do not have "umbrella" insurance, and need/want at least $500K in insurance to cover a "you might lose the house" court case from some kind of "at fault" accident.

The motor home.. loss would be a problem and frustrating if it was "at fault" but.. I think that is one I would self insure, and just use my savings as "self insurance" in that unlikely event.

Of course when I talk to Geico about cars that are rarely driven, they agree to reduce the price, but when I ask about removing uninsured motorist fees, or assigning those vehicles to a lower Liability coverage , they say, well if you want 250/500 you need to keep ALL the vehicles covered at that level regardless of how often they are driven.

So.. can anyone advise me on an approach that meets my requirements?

1.0 I don't lose my house if/when I get sued and lose (very unlikely, but that's what insurance is for).

Thinking about it more.. and how many years I have been driving.. Item 1 is really the ONLY reason I have auto insurance on all the cars sitting around here.

Yes.. having no collision on a $100K motor home would be a problem/frustrating.. but why won't they sell me a $25K deductible.. and I will self insure that .. and they pay the rest if it gets totaled by someone who is drinking and driving and uninsured.

Feedback welcome/helpful.

PS.. When the auto insurance was $3k/year.. I didn't get too excited about the bill.
Now that they have jacked it up (with no tickets, no accidents, no events) to $4k/year and rising, I am paying attention.

Thanks in advance.

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Re: Auto Insurance: worth it self-insure?

Post by MikeG62 »

Chuckles960 wrote: Thu Oct 06, 2022 1:59 pm The objective rule is, never buy insurance for losses you can afford. But the subjective rule is, buy if it makes you feel better. Can't put a price on mental well-being.
This line of thinking resonates with me as well.
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chassis
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Re: Auto Insurance: worth it self-insure?

Post by chassis »

creant wrote: Thu Oct 06, 2022 10:34 am For someone who can afford a replacement car if one's car is totaled, and also has robust umbrella/health/disability/life insurance coverage, are there any reasons to buy Collision, Comprehensive, Uninsured Bodily, or Uninsured Property coverage? Assuming a 10 year old, 5 year old, and brand new cars.

For instance, in an accident, will your insurance company will do all of the work and deal with the other driver/insurance company, instead of you? Will your insurance company "fight" the other side more, instead of you? Etc.
In the example above I would buy the minimum coverage required by the relevant state law.
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Re: Auto Insurance: worth it self-insure?

Post by galawdawg »

chassis wrote: Fri Oct 07, 2022 6:03 am
creant wrote: Thu Oct 06, 2022 10:34 am For someone who can afford a replacement car if one's car is totaled, and also has robust umbrella/health/disability/life insurance coverage, are there any reasons to buy Collision, Comprehensive, Uninsured Bodily, or Uninsured Property coverage? Assuming a 10 year old, 5 year old, and brand new cars.

For instance, in an accident, will your insurance company will do all of the work and deal with the other driver/insurance company, instead of you? Will your insurance company "fight" the other side more, instead of you? Etc.
In the example above I would buy the minimum coverage required by the relevant state law.
Are you recommending that the OP reduce his liability coverage to the minimum required by his state and cancel his umbrella policy?

An umbrella policy requires higher liability limits on the underlying auto policy than state minimums, so OP could not reduce his auto liability to the state minimum and keep his umbrella policy. So if that is what you are recommending, can you explain your reasoning?

Of course there are no state minimum requirements for collision or comprehensive coverage.
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Re: Auto Insurance: worth it self-insure?

Post by bradinsky »

chassis wrote: Fri Oct 07, 2022 6:03 am
creant wrote: Thu Oct 06, 2022 10:34 am For someone who can afford a replacement car if one's car is totaled, and also has robust umbrella/health/disability/life insurance coverage, are there any reasons to buy Collision, Comprehensive, Uninsured Bodily, or Uninsured Property coverage? Assuming a 10 year old, 5 year old, and brand new cars.

For instance, in an accident, will your insurance company will do all of the work and deal with the other driver/insurance company, instead of you? Will your insurance company "fight" the other side more, instead of you? Etc.
In the example above I would buy the minimum coverage required by the relevant state law.
Anyone who would only carry minimum liability coverage is either poor, extremely wealthy or very short of common sense.
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Re: Auto Insurance: worth it self-insure?

Post by Admiral »

Avoiding the extreme hassle of personally dealing with another party's insurance company and their ambulance-chasing lawyers is worth $500 (or whatever) to me. My time is valuable and so is my emotional wellbeing. Who needs that stress?

Pay it and forget it, IMO. Skip a few dinners out.

It is amazing to me--and I'm not personally singling out this poster--what hoops Bhs are willing to go through to save a few bucks. Pennywise and pound foolish. Reminds me of the "I own my house so I don't need insurance" post from a few weeks ago.
sc9182
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Re: Auto Insurance: worth it self-insure?

Post by sc9182 »

galawdawg wrote: Fri Oct 07, 2022 6:21 am
chassis wrote: Fri Oct 07, 2022 6:03 am
creant wrote: Thu Oct 06, 2022 10:34 am For someone who can afford a replacement car if one's car is totaled, and also has robust umbrella/health/disability/life insurance coverage, are there any reasons to buy Collision, Comprehensive, Uninsured Bodily, or Uninsured Property coverage? Assuming a 10 year old, 5 year old, and brand new cars.

For instance, in an accident, will your insurance company will do all of the work and deal with the other driver/insurance company, instead of you? Will your insurance company "fight" the other side more, instead of you? Etc.
In the example above I would buy the minimum coverage required by the relevant state law.
Are you recommending that the OP reduce his liability coverage to the minimum required by his state and cancel his umbrella policy?

An umbrella policy requires higher liability limits on the underlying auto policy than state minimums, so OP could not reduce his auto liability to the state minimum and keep his umbrella policy. So if that is what you are recommending, can you explain your reasoning?

Of course there are no state minimum requirements for collision or comprehensive coverage.
OP is carrying Umbrella - he is NOT falling for the “state minimum” trick :)

For giggles - But if you want to fall into bigger rabbit hole than “state minimum” — there is “Self Insure” — some states make it easy, some states have higher requirements to meet:

https://www.motor1.com/reviews/406965/a ... insurance/
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Re: Auto Insurance: worth it self-insure?

Post by bradinsky »

Admiral wrote: Fri Oct 07, 2022 7:39 am Avoiding the extreme hassle of personally dealing with another party's insurance company and their ambulance-chasing lawyers is worth $500 (or whatever) to me. My time is valuable and so is my emotional wellbeing. Who needs that stress?

Pay it and forget it, IMO. Skip a few dinners out.

It is amazing to me--and I'm not personally singling out this poster--what hoops Bhs are willing to go through to save a few bucks. Pennywise and pound foolish. Reminds me of the "I own my house so I don't need insurance" post from a few weeks ago.
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HMSVictory
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Re: Auto Insurance: worth it self-insure?

Post by HMSVictory »

I wouldn't skip physical damage insurance I would just use a higher deductible which will save you a lot.

I carry $1,000 physical damage deductibles but you can have them at $5,000 if you want.

Comp and Collision is not expensive vs. replacing an entire car.
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retired@50
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Re: Auto Insurance: worth it self-insure?

Post by retired@50 »

creant wrote: Thu Oct 06, 2022 3:14 pm For Comprehensive $250, Collision $1000 deductibles, Uninsured Property (no Bodily) $25,000 coverage.
If you're looking to lower your premium, you could make the Comprehensive deductible $1,000 also.

Regards,
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staustin
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Re: Auto Insurance: worth it self-insure?

Post by staustin »

HMSVictory wrote: Fri Oct 07, 2022 8:16 am I wouldn't skip physical damage insurance I would just use a higher deductible which will save you a lot.

I carry $1,000 physical damage deductibles but you can have them at $5,000 if you want.

Comp and Collision is not expensive vs. replacing an entire car.
This has been another insightful bogleheads discussion. As for us, we pay cash for all our vehicles and are fine with dents and dings as well. The wife and I ultimately decided to maintain full coverage on all our vehicles, but increase all deductibles to 5,000. Two of our vehicles are still relatively new and lower mileage. We added uninsured motorists after twice having been incurred damage by another party that was uninsured. We view most all insurance now as catastrophic only.
jmw
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Re: Auto Insurance: worth it self-insure?

Post by jmw »

Your car may only be worth $6k due to mileage and condition (ie. average or below, 200k+ miles), but the cost to replace with a similar car in the used market could be much higher because the mileage is lower and the condition is dealership clean instead of body damage on 3 quarter panels. The replacement could be $10k+. If you ever total a car with collision on an average or poor condition, the payout could be quite high except adjusted for mileage only.
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Re: Auto Insurance: worth it self-insure?

Post by tj »

retired@50 wrote: Fri Oct 07, 2022 9:38 am
creant wrote: Thu Oct 06, 2022 3:14 pm For Comprehensive $250, Collision $1000 deductibles, Uninsured Property (no Bodily) $25,000 coverage.
If you're looking to lower your premium, you could make the Comprehensive deductible $1,000 also.

Regards,
There likely isn't much savings, or they would already have that.
afan
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Re: Auto Insurance: worth it self-insure?

Post by afan »

When I looked into it, I concluded that having the collision and comp was so cheap it was worth keeping and not worth worrying about. We use high deductibles- self insuring that amount- and figure we would not put a claim on our record for a small loss. In effect, we are only paying for the insurer to take over in an accident, since our deductibles mean we would collect little or nothing if the, old, cars were totalled.

Having our insurance company deal with the other company or driver if we were in an accident is worth much more than the cost of coverage

We have enough auto liability coverage to satisfy the requirements of our umbrella policy.
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chassis
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Re: Auto Insurance: worth it self-insure?

Post by chassis »

bradinsky wrote: Fri Oct 07, 2022 7:28 am
chassis wrote: Fri Oct 07, 2022 6:03 am
creant wrote: Thu Oct 06, 2022 10:34 am For someone who can afford a replacement car if one's car is totaled, and also has robust umbrella/health/disability/life insurance coverage, are there any reasons to buy Collision, Comprehensive, Uninsured Bodily, or Uninsured Property coverage? Assuming a 10 year old, 5 year old, and brand new cars.

For instance, in an accident, will your insurance company will do all of the work and deal with the other driver/insurance company, instead of you? Will your insurance company "fight" the other side more, instead of you? Etc.
In the example above I would buy the minimum coverage required by the relevant state law.
Anyone who would only carry minimum liability coverage is either poor, extremely wealthy or very short of common sense.
Yes, wealthy. We agree. And smart by not paying the slimey snakes in the insurance business.
ncbill
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Re: Auto Insurance: worth it self-insure?

Post by ncbill »

chassis wrote: Sat Oct 08, 2022 9:03 am
bradinsky wrote: Fri Oct 07, 2022 7:28 am
chassis wrote: Fri Oct 07, 2022 6:03 am
creant wrote: Thu Oct 06, 2022 10:34 am For someone who can afford a replacement car if one's car is totaled, and also has robust umbrella/health/disability/life insurance coverage, are there any reasons to buy Collision, Comprehensive, Uninsured Bodily, or Uninsured Property coverage? Assuming a 10 year old, 5 year old, and brand new cars.

For instance, in an accident, will your insurance company will do all of the work and deal with the other driver/insurance company, instead of you? Will your insurance company "fight" the other side more, instead of you? Etc.
In the example above I would buy the minimum coverage required by the relevant state law.
Anyone who would only carry minimum liability coverage is either poor, extremely wealthy or very short of common sense.
Yes, wealthy. We agree. And smart by not paying the slimey snakes in the insurance business.
How does the wealthy person magically avoid a civil judgment when they cause an at-fault accident w/o insurance coverage?
chassis
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Re: Auto Insurance: worth it self-insure?

Post by chassis »

ncbill wrote: Sat Oct 08, 2022 2:11 pm
chassis wrote: Sat Oct 08, 2022 9:03 am
bradinsky wrote: Fri Oct 07, 2022 7:28 am
chassis wrote: Fri Oct 07, 2022 6:03 am
creant wrote: Thu Oct 06, 2022 10:34 am For someone who can afford a replacement car if one's car is totaled, and also has robust umbrella/health/disability/life insurance coverage, are there any reasons to buy Collision, Comprehensive, Uninsured Bodily, or Uninsured Property coverage? Assuming a 10 year old, 5 year old, and brand new cars.

For instance, in an accident, will your insurance company will do all of the work and deal with the other driver/insurance company, instead of you? Will your insurance company "fight" the other side more, instead of you? Etc.
In the example above I would buy the minimum coverage required by the relevant state law.
Anyone who would only carry minimum liability coverage is either poor, extremely wealthy or very short of common sense.
Yes, wealthy. We agree. And smart by not paying the slimey snakes in the insurance business.
How does the wealthy person magically avoid a civil judgment when they cause an at-fault accident w/o insurance coverage?
Re-read the original post. After re-reading it, please post an update.
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