Insurance Amount

#1

This is all new territory for me since this is my first (and last) new car…



I always just got the bare minimum on my previous junkers; no collision currently.



Coverage from $25k to $500k and deductibles from $100 to $1,500.



What level of full insurance do most new car buyers recommend and why???

#2

I have a $100 deductible for collision and $50 for comprehensive. If you don’t like the premium rates at that level, go with higher deductibles you can afford. My personal philosophy is that you need to cover the cost of your new car and be able to replace it one for one if you are in an at fault accident. The less savings you have, probably the more insurance coverage you need, so that a single at fault instance doesn’t have a major negative effect on your family.

Most new car buyers carry whatever satisfies the loan company, which may not be enough in a real at fault liability situation.

I think my liability coverage limits are $100K/300K/100K, if I remember correctly. In today’s litigious society, those limits may be low; some folks recommend 500K to near $1M liability coverage these days.

#3

Agree; raise the deductible and take at least $1 million in liability. With today’s medical costs, any claim can easily reach that level. Your overall premiums may actually decrease with this arangemnt, since it is very expensive to process small claims.

#4

If the car is financed, the finance company will tell you what they require in terms of insurance. Add to that what the state requires and you should be covered pretty well. Once you satisfy the state and the finance company, most new car buyers have nothing useful to add unless it is for peace of mind. Only you and your insurance agent can decide what is necessary for your peace of mind.

Your decuctible should be based on what you can afford to pay out of pocket. How much money do you have saved? Do you have a line of credit or a credit card with available credit? If something were to happen to the car, how much could you afford? For me, that amount is $500. For you it might be $1,000. Keep your deductible realistic.

#5

I like the $500 deductable, because it takes away the temptation to make a small claim that could just raise the price of your insurance. As far as liability goes, if you have a few hundred thousand dollars saved in a bank, you should consider protecting some or all of it. You want to have enough to save yourself from all that worry. It’s the medical bills that can kill a person. A lot of suicides could have been prevented if medical care had been available. If the car is worth more than you have in the bank, you might want collision coverage. Collision coverage is not a “coin toss” but it can only hurt you a certain amount.

#6

As for deductibles…get the HIGHEST possible deductible you can afford. If you get in a accident that’s your fault what can you afford as a deductible.

Coverage is different. You want to cover you assets. If you live in a apartment and don’t have a lot of “Stuff”, then get the minimum liability. If you own property or a business and have vacation home…then get at least $500k coverage.

If you’re a multi millionaire…then insure yourself.

#7

Are you paying off the car?Then the loan company will give you the bare bones for insurance. Do it yourself and MAX out as best you can. So Cal is where one needs extra uninsured/underinsured coverage as well. Lots of first timers out in San Diego,never been behind a wheel before and aren’t legal.

#8

I suggest getting the highest coverage possible. The cost is not much more unless you are a high risk driver. If you have $25k in coverage and hit most any vehicle, I guarantee you will have your wages garnished to pay back the excess if you want to retain a valid driver’s license.

As far as deductible I usually keep the comprehensive lower($100-$250) and collision higher($500-$1000). Price out the difference and see what makes sense.

#9

I suggest getting the highest coverage possible. The cost is not much more unless you are a high risk driver. If you have $25k in coverage and hit most any vehicle, I guarantee you will have your wages garnished to pay back the excess if you want to retain a valid driver’s license.

That’s one way to look at it…But as I said…you need to cover your assets…and wages are assets. And in NH since insurance is NOT required the people who are usually driving around with no insurance are the very poor or the very rich.

Personally I have almost the same deductible as you do…100 for comprehensive…but I have $1500 for collision. I don’t have a high coverage…instead I have a separate umbrella coverage of $2m that covers our cars my House and my two income properties. Cheaper that way. The more you have to loose the more insurance you need…UNLESS you’re a millionaire like Bill Gates who insures himself.

#10

Paying cash for it; no financing… And, yes, I do have about $100k in the bank as well as rental property… As well as “wages”…

#11

I insure for $1 Million liability, deductiables for comprehensive and collision at $500.

#12

Get as much liability insurance as you can buy. If you are sued after an accident and lose, the judgment, up to the limits of the policy, will come out of the insurance company’s pocket, not yours. In addition to automobile liability, consider an umbrella liability policy to give you even more protection that is not limited to automobile accidents. You mention having $100k and property; all of that is at risk without adequate liability insurance.

For the lowest premium, pick the highest deductibles for collision and comprehensive that you can afford to pay out of your own pocket. When the car is so old that it is no longer worth much, drop them. (But keep all the liability coverage.)

Also consider emergency road service coverage. It’s cheap. If you need a tow truck, pay the driver yourself and send the bill to your insurance company for reimbursement.

#13

By all means look into an umbrella policy.These can also apply to your home,rentals and other properties. And not too expensive. Do not expose your 100K to a quick accident siphon.