Am I carrying too much car insurance?

mbrcatz

OK, the "comp collision for 25/50" is actually FOUR seperate coverages.

You do NOT have too much insurance. There's a fifth number there that you are missing - the property damage limit.

Assuming your household income is over $25,000 a year - you are UNDERINSURED, in my opinion. You see, the MOST your policy is going to pay if you hurt someone is $25,000, and not more than $50,000 if there are multiple people in the car. AT those limits, you probably have $10,000 or $15,000 of property damage coverage. Heaven forbid you're the last guy in in a three car pileup - you WILL be writing a check, as the policy won't ever pay more than the limit!! And as you know, not many newer cars these days are worth less than $15K, let alone dividing the damage between 2 or 3 cars.

MY recommendation is AT LEAST the higher of, your assets (including retirement, savings & home) or double your household annual income. Because if you really hurt someone (and let's face it, it's not HARD to rack up $25,000 in medical bills these days), you've got wages to protect, and "stuff" to protect.

Now, your issue - premiums. The OBVIOUS problem is that you have two, new, expensive cars with full coverage. If you live in an urban area, you likely have higher rates, but your CREDIT SCORE is also instrumental in rate determination (unless you live in CA). SO. Go pull a copy of your credit report today, for free, from the three credit bureaus (www.annualcreditreport.com for free), and start cleaning up your credit. Consider selling the more expensive vehicle, and buying a junker for cash so you can drop the collision and comp on it. And 45 days before your policy is due ot renew, start shopping it out - go to AT LEAST three different independent agents, and get quotes from AT LEAST 6 different companies. You might be surprised at the price difference.

Lastly, if you have your homeowners (renters) and auto with the same company, you can get MASSIVE discounts off both policies. If you don't already have a renter's policy, see if you can get one from your auto carrier. Don't forget to factor in THAT discount, when you're comparing prices.

namrepus

I think thats ok.. maybe your just doubting why your friend has a much lesser car insurance payments. Why dont you try to visit some car insurance company if you really want to have a much cheaper insurance payments? Go for an online quotation so that you can compare different prices. Try to visit this cheap car insurance site http://www.nightbirdssolutions.com evaluate the quotes that you have collected and select the best one for you.

glad2bhalfbreed

well if they are paid off i wold say yes have you called around and got other quotes try that and see what you come up with

Joha

It will depend of the car, your age, if you have had previous accidents, tickets, state where you live, your insurance company, number of vehicles insured and coverage chosen. I will recommend to talk seriously to your agent or company representative and have them explain to you every cost or...small letters.

MotoGirl

I believe the coverages you listed are not just for your cars, but are for others' cars, medical bills, etc., in the event that you cause an accident. You should check with your insurance agent to be sure.

In the event you cause an accident, you are personally liable for any costs (your car, your passengers' medical bills, other drivers' cars and bills) above what your insurance company pays.

Considering that I commonly see $30k + cars all around me when I drive (and I live in a low income state), and medical bills are outrageous these days, I would say, no you are not carrying too much insurance.

Two other questions to ask your agent are:

1. Do you have uninsured or underinsured coverage? This coverage pays medical bills for you and your passenger in the event that someone without insurance, or without adequate coverage, hits your car. It's unfortunate that we have to pay for others' lack of coverage.

2. What are the minimums in your state?

Pedro S

wow...thats not too much ins...but my wife and i pay 1200 a yr for 1999 s 10 and 2005 subaru baha...full collision and glass and fire ....shop around call the caveman and a local independant agent...

insure w

hi...
to get your doubts cleared regarding car insurance and to get more relavent information visit the web site...
http://autoinsuranceinfo.50webs.com
http://freewebs.com/autoinsuranceinfo
good luck...

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