Auto Insurance Advice/Input

[GlockSpock]

Thanks to everyone who talked to me about health insurance a few weeks ago! I decided to keep my wife on my policy at work instead of putting her on her "own" policy, and don't regret it at all. I am now trying to cut "pork" from my auto insurance while keeping what is very important. This is what I've came up with so far. I haven't "submitted" it yet, but here it is:
 
 
 

 
Bodily Injury Liability
Pays others' medical costs related to an accident if you are at fault. Medical costs may be related to bodily injury or death. It may also cover the injured parties lost wages and your legal defense. Coverage levels are stated in a 'per person/per accident' format.
For instance, "100/300" coverage means that:
Each person involved in an incident is covered up to $100,000, and
The total coverage for all parties involved is a maximum of $300,000.
I have this set at $100,000/$300,000


Property Damage Liability
Pays for damage to another person's property or vehicle if you are at fault in an auto accident. It will also provide for your legal defense if a suit is brought against you as a result of this accident.
I have this set at $100,000


Uninsured/Underinsured Motorists Bodily Injury
Pays medical costs for you and your passenger(s) if an accident caused by an uninsured or underinsured driver results in injury. This coverage may also pay for lost wages and other damages. Coverage varies from state to state and is mandatory in some states. Coverage levels are stated in a "per person/per accident" format. For instance, "100/300" coverage means that: Each person involved in an incident is covered up to $100,000, and the total coverage for all parties involved is a maximum of $300,000.
I have this set at $25,000/$50,000


Uninsured/Underinsured Motorists Property Damage
Protects you if your vehicle is damaged in an accident by an underinsured, uninsured or unidentified driver. This type of coverage varies from state to state and is required in some states.
I have this set at $50,000


Roadside Assistance
Basic includes towing (up to 15 miles), emergency fuel delivery, jump starting service, tire changing assistance and special member discounts. These services apply to you and your household members even when you’re the occupant of another driver’s vehicle.
Plus includes all the benefits of the Basic package while increasing maximum towing distance to 100 miles. This package adds complimentary messaging in case of a roadside emergency to up to three contacts, trip interruption benefits if your vehicle is disabled away from home, pre-trip mapping and turn-by-turn direction service.
I declined this


Comprehensive
Helps pay for damage to your vehicle not caused by collision or upset. Examples include damage or loss resulting from theft, vandalism, fire, windstorm, flood and certain other natural disasters.
I have a $1,000 deductible


Collision
Pays for damage only to your vehicle if you hit another vehicle, another vehicle hits you, or your vehicle rolls over regardless of who is at fault.
I have a $1,000 deductible


Original Equipment Manufacturer
Pays for Original Equipment Manufacturer (OEM) parts used to repair your vehicle due to a comprehensive or collision claim. Requires comprehensive and/or collision coverage.
I declined this


Medical Payments
Pays medical expenses for you and your passengers in the event of an accident, regardless of who is at fault. In your policy, this may be referred to as Medical Expenses or Medical Benefits.
My wife and I have health insurance so I declined this.


Rental Car Expense
Pays for your rental car or other transportation (such as bus or subway) if your car cannot be driven due to an accident for which you were cited as the party at fault or due to a Comprehensive claim. In your policy, this may be referred to as Rental Reimbursement, Transportation Expense or Loss of Use.
I declined this


Sound, Picture & Data Devices
Any electronic equipment that receives or transmits audio, visual or data signals and is not designed solely for the reproduction of sound and any accessories used with such equipment.
I declined this


Accident Forgiveness
This upgrade keeps your premium from increasing if you're involved in an accident as long as you have been accident-free for the past 3 years.
I declined this


Minor Violation Forgiveness
This reward keeps your premium from increasing if you're charged with a minor traffic violation as long as you have been ticket-free for the past 3 years.
I declined this


Vanishing Deductible
With this reward, your Comprehensive and/or Collision deductible will be reduced by $100 each year you remain accident-free. You may reduce your deductible up to $500. If you sign up today, you instantly receive $100 off your deductible. If you are involved in an accident, this reward is reset back to $100 off.
I declined this


Total Loss Deductible Waiver
This upgrade eliminates your Comprehensive and/or Collision deductible if your vehicle is a total loss due to an accident.
I declined this

Currently I have a 6 month premium of 471.50. After I make the proposed changes to what is shown above, I will save roughly $120 every six months. I would like everyone's logic as to what you'd do, and why? For anyone curious, this is Nationwide.

Edited March 8, 2013 by CZ9MM

[monkeylizard]

Med Pay is the only one you may want to reconsider. It will cover your deductible/out-of-pocket portion that your main healthcare plan doesn't cover. It also covers passengers in your car, who aren't necessarily covered by your healthcare insurance.

 

Also keep an eye on your Comp and Collision coverages. If you like to drive your cars until the wheels fall off, at some point it's not worth carrying comp and collision. Your deductible becomes the whole value of the car.

[2.ooohhh]

Med Pay is the only one you may want to reconsider. It will cover your deductible/out-of-pocket portion that your main healthcare plan doesn't cover. It also covers passengers in your car, who aren't necessarily covered by your healthcare insurance.

 

Also keep an eye on your Comp and Collision coverages. If you like to drive your cars until the wheels fall off, at some point it's not worth carrying comp and collision. Your deductible becomes the whole value of the car.

 

I agree witht he above statement but think it should be ammended ever so slightly.

 

. . .who aren't necessarily covered by your healthcare insurance, and may have no personal health insurance or a very high deductable.

[D3vo]

In my experience $471.50 is real high for one car (Depends on your Age, Driving Record and Year Make and Model).  How many cars are you insuring?  Are you using the same company for your home/renters insurance to obtain the muti-policy discount?  Have you shopped around?  You should know using an independent agent is going to cost you a bit more because the company has to pay a commission to the agent.

[GlockSpock]

I am 22. I believe on paper I have a clean driving record, although there has been a few bumps and bruises along the way. I have shopped around...a lot. Nationwide is by far the cheapest I have found. It is also for a 2012 Ford Fusion. I am getting quite a few "policy discounts". 

 

You should know using an independent agent is going to cost you a bit more because the company has to pay a commission to the agent.

 

This seems interesting to me though...what is my alternative? I suppose I have an agent...it's the local Nationwide agent. Can I go straight through Nationwide? And I was thinking quite a bit about the medical payments. I did conclude that the only reason I suppose I"d need it is if I am driving around uninsured health people. Right? Or to cover health insurance deductibles, as stated above.

 

Thanks so far for the input!

[strickj]

Call Knox in East Ridge. I guarantee they'll cut that price by about half for same/better coverage. (423) 855-1544

[GlockSpock]

Call Knox in East Ridge. I guarantee they'll cut that price by about half for same/better coverage. (423) 855-1544

 

I very well may try this just because you've suggested and I'm always open to saving money, but I literally have received quotes from roughly 10 different providers and all of them have had auto coverage at over $100 per month. Being a 22 year old male does not equal good auto insurance.

[monkeylizard]

It probably won't change your premium much, and you may not be able to set it lower, but you don't really need $50,000 in Uninsured/Underinsured Physical Damage. That fixes your car if the other party is at fault and doesn have nay or enough insurance. That's not uncommon here in TN with all our illegals and meth-heads, but it won't take $50K to fix a 2012 Ford Fusion. See if you can drop that to $25,000 and if it affects your premium at all. $50K may be the minimum, but it won't hurt to ask.

[babelt]

I feel your pain, I drive a 99 Toyota and mine is $88 a month. That's with Farm Beuro and it's the cheapest I have been able to find with good coverage. I've always had good dealings with them. 

[LawVol]

I'd bump the UM bodily injury coverage back up to your liability limits.  It does not add much to the cost, but UM coverage is almost as important as liability coverage, IMHO.  

 

If you get hit by someone, chances are pretty good that they will either be A.) uninsured or B.) carrying minimum policy limits.  When that happens, you'll be glad you paid a few extra bucks for better UM coverage.

[GlockSpock]

It probably won't change your premium much, and you may not be able to set it lower, but you don't really need $50,000 in Uninsured/Underinsured Physical Damage. That fixes your car if the other party is at fault and doesn have nay or enough insurance. That's not uncommon here in TN with all our illegals and meth-heads, but it won't take $50K to fix a 2012 Ford Fusion. See if you can drop that to $25,000 and if it affects your premium at all. $50K may be the minimum, but it won't hurt to ask.

 

I am doing all of this on their website. I actually did set it to $25,000, and I think it changed the 6 month premium by $1. It's a $15k (max) car, I'll go ahead and change that to $25k just because.

[peejman]

Think about combining rental/homeowners, life insurance, wife's car, etc. with them.  Most providers offer a "multi-line" discount. 

 

Check on the difference between $500 and $1000 deductibles.  Mine are $500 because the reduction by going to $1000 had something like a 10 yr payback.  Meaning while it may increase your premium slightly, it'll actually save you money if you have a claim. 

 

The rental car coverage is another one to think hard about.  If you mash a car, it can take weeks to get it fixed.  If you don't have alternate transportation, rental cars get expensive real quick.

 

Everything else looks normal to me.  You'll just have to suffer for 3 more years, rates typically go down at age 25.

[GlockSpock]

I'd bump the UM bodily injury coverage back up to your liability limits.  It does not add much to the cost, but UM coverage is almost as important as liability coverage, IMHO.  

 

If you get hit by someone, chances are pretty good that they will either be A.) uninsured or B.) carrying minimum policy limits.  When that happens, you'll be glad you paid a few extra bucks for better UM coverage.

 

Interesting. Now doesn't this cover my passengers and myself? You'd still go for it even with health insurance? I guess it'd be good for people that may be riding with me that don't have health insurance?

[2.ooohhh]

Any chance of getting rid of the new car?

 

2 years ago changing my primary vehicle from a 2007 Mazda to a 1999 VW Beetle dropped my premium around $100 a month, and I picked up leather and heated seats in the switch.  :pleased:

 

 

I've got 2 classic sportscars and a vintage VW bus as well as my daily with a terrible driving record(on paper) and I am still just barely over what you quoted for your focus alone. ($528 per 6 months for all 4)

Edited March 8, 2013 by 2.ooohhh

[cannoncocker]

Your uninsured/underinsured  motorists coverage for bodily injury is too low.  Think in terms of being severely injured by a hit and run and/or uninsured driver.  You are unable to work for 10 years and have continuing medical expenses that may or may not be covered (if you still have it) by your health insurance. $25,000.00 won't go very far.  Purchase the max your insurer will offer.

[GlockSpock]

Your uninsured/underinsured  motorists coverage for bodily injury is too low.  Think in terms of being severely injured by a hit and run and/or uninsured driver.  You are unable to work for 10 years and have continuing medical expenses that may or may not be covered (if you still have it) by your health insurance. $25,000.00 won't go very far.  Purchase the max your insurer will offer.

 

Ok. That puts it into perspective. Things like that are something you don't really think about too much, but can and do happen. So I'll bump the uninsured/under-insured motorists coverage up. What about "medical payments"?

[safeandsecure]

One other suggestion: rather than increasing your auto liability coverages, look into an "umbrella" liability policy. That way, if you need liability insurance for some reason other than automotive liability, you will have coverage.  (Don't know if you are a home-owner, but it provides coverage over and above other policy limits, including coverage for auto accidents and anyone getting hurt on your property.)  I have one, simply because society has become "sue-crazy."  'Course, it may not be right for you, but that might be a way (depending on what the policy covers) to get that extra coverage for injuries or damages that have low limits on your auto policy.

 

I also know how bad premiums are on young men.  My son just came off my policy, got his own (got married), and while HE is moaning and groaning, my premiums dropped substantially.  (Might be cause I'm an old fart and drive like an old fart, which is to say slow and no more than is absolutely necessary.)

[wipfel]

I used to sell auto/home in Virginia, and I would agree with the above advice to increase the uninsured/underinsured coverage. You can price it out, but it shouldn't make much difference in the premiums.  I would also add back the medical coverage if you can.  It's handy and helps prevent out-of-pocket costs.  The rest looks ok IMHO.

 

Definitely check into that umbrella policy.  It's good peace of mind and it shouldn't be too expensive.  Be sure to read the coverage limitations or get an agent to answer questions.

[cannoncocker]

Ok. That puts it into perspective. Things like that are something you don't really think about too much, but can and do happen. So I'll bump the uninsured/under-insured motorists coverage up. What about "medical payments"?

Take the minimum required, if any.  Your liability coverage will pay (up to your policy limits) bodily injury claims for which you are found to be liable.

[GlockSpock]

So I've put the bodily injury for uninsured/underinsured motorists to $100,000/$300,000. I do however have a question. The bodily injury liability is to pay for others' medical costs. The uninsured/underinsured motorists covers medical costs for my passengers and I if an accident is caused by another driver.

 

What if I am in an accident caused by myself? That doesn't really fall into the bodily injury liability or the uninsured/underinsured motorists does it?The coverage for medical payments is the only one that fits what I am describing (in my interpretation). It can only go to $25,000.

 

Theoretically my health insurance would cover my wife and I. What if there was someone that didn't have insurance riding with me? That could get expensive quick.

 

cannoncocker: You may have already answered this.

Edited March 8, 2013 by CZ9MM

[cannoncocker]

"What if there was someone that didn't have insurance riding with me? That could get expensive quick."

 

He/she sues you.  Again, that is why you carry liability insurance.

[GlockSpock]

"What if there was someone that didn't have insurance riding with me? That could get expensive quick."

 

He/she sues you.  Again, that is why you carry liability insurance.

 

Liability insurance as in bodily injury liability $100,000/$300,000?

[cannoncocker]

Liability insurance as in bodily injury liability $100,000/$300,000?

 

Yes.