Auto Insurance Coverage Help?

[boogiemom]

Since we just purchased our new Toyota Sienna (LOVE IT!!!!!!! :) ), we thought now would be a good time to shop around for insurance rates as it always seems that our insurance just slowly creeps up over time. I swear they wait for us to get complacent and then sneak in increases! Anyway, everytime I do this I wonder what is prudent as far as coverage limits. What would you recommend? I want to be sure to have enough but I don't want to pay for more coverage than I need.

We have the new Sienna and a 1998 Chevrolet Blazer. My DH drives the blazer on an occasional errand and back and forth to the airport when he travels for business, typically weekly. When he is in town, he works from our basement. So, not many miles are put on this at all. It has 70,000 or so now but very few miles put on in the last couple of years. The Sienna is mine. I am a SAHM. I drive approx. 2-3 mi. each way back and forth to school daily. I go to the grocery store, dr.'s appts., zoo, etc.....the usual mommy stuff. Again, this one won't get a tremendous amount of miles either, except for the occasional drives to see family, etc.

Do we need collision on the blazer? It's not worth much. Financially, we are comfortable. We have a decent amount in savings, etc. so a surprise wouldn't kill us but I'd rather not have to deal with one, KWIM? How do you decide when to drop collision? We have health insurance...do we need personal injury protection? What liability limits make sense?

I truly appreciate any guidance you can offer. I hate doing this kind of stuff. I've done a couple of online quote things and the recommended coverages vary and I just don't know what makes sense! Then I second guess myself when I find what seems to be a great deal and I assume something important has been left out. UGH! Can anyone recommend an established, reputable company that has good rates?

Thanks so much!

[boogiemom]

Ahhhh, man! No one has any advice? :(

Hmmmmmm.....if BBB doesn't have an answer for me, what's a girl to do? ;)

[clc053103]

I would get a price comparison with collision vs. without collision coverage on the blazer- it could be very expensive, in which case it may make sense to drop it.

As for PIP coverage- that would depend what state you live in. Some states, PIP is mandatory. Others it is optional or secondary to health ins, in which case you could consider dropping it.

[BillK]

Since we just purchased our new Toyota Sienna (LOVE IT!!!!!!! :) ), we thought now would be a good time to shop around for insurance rates as it always seems that our insurance just slowly creeps up over time. I swear they wait for us to get complacent and then sneak in increases! Anyway, everytime I do this I wonder what is prudent as far as coverage limits. What would you recommend? I want to be sure to have enough but I don't want to pay for more coverage than I need.

We have the new Sienna and a 1998 Chevrolet Blazer. My DH drives the blazer on an occasional errand and back and forth to the airport when he travels for business, typically weekly. When he is in town, he works from our basement. So, not many miles are put on this at all. It has 70,000 or so now but very few miles put on in the last couple of years. The Sienna is mine. I am a SAHM. I drive approx. 2-3 mi. each way back and forth to school daily. I go to the grocery store, dr.'s appts., zoo, etc.....the usual mommy stuff. Again, this one won't get a tremendous amount of miles either, except for the occasional drives to see family, etc.

Do we need collision on the blazer? It's not worth much. Financially, we are comfortable. We have a decent amount in savings, etc. so a surprise wouldn't kill us but I'd rather not have to deal with one, KWIM? How do you decide when to drop collision? We have health insurance...do we need personal injury protection? What liability limits make sense?

I truly appreciate any guidance you can offer. I hate doing this kind of stuff. I've done a couple of online quote things and the recommended coverages vary and I just don't know what makes sense! Then I second guess myself when I find what seems to be a great deal and I assume something important has been left out. UGH! Can anyone recommend an established, reputable company that has good rates?

Thanks so much!

Well not knowing what state you live it makes it hard to answer all your questions as Auto Insurance laws vary from state to state.

My answers are based on PA's auto law - since that's where my agency is located.

Here's what I like to quote as a minimum starting point:

Bodily Injury Liability (injuries to others you are responsible for): 100,000 each person/300,000 each accident (or higher based your situation)

Property Damage Liability (damage to other peoples property/cars etc): 100,000 minimum

Medical Expense (PIP or First Party Benefits in some states): PA requires 5,000 minimum - every situation is different and your choice should be made based on your health coverage situation (for example if your health coverage has an "unlimited" lifetime maximum then perhaps 5,000 on auto is ok - but if it's got a limit - you may want to consider a higher auto limit since you don't want an auto accident medical claim to eat away at your maximum limit on your health coverage). In PA you can get medical all the way up to 1,000,000.

Uninsured/Underinsured Motorist (protects you and your family for bodily injury claims caused by un or under-insured drivers): Carry the same as you do for Bodily Injury Liability - and if stacking (adding the limit from each vehicle) is available - do it.

Comprehensive (also known as Other than Collision): Carry whatever deductible you are comfortable with paying in the event of a claim - or nothing at all if you can afford to replace your vehicle on your own. Only you can answer the question of whether you should carry Comp & Collision or not - and most agents (me included) are reluctant to make the suggestion of removing any coverage - for obvious reasons.

Collision (collision or upset - pretty much you wreck your car - OR - it's hit and run): same as Comprehensive above.

Additional First Party Benefits (funeral expense, death indemnity, work loss): they're all dirt cheap coverages and especially work loss benefits is important - if you work - carry it as it reimburses your lost wages in the event of an auto related claim and your unable to work - pick a limit you're comfortable with - normally 1,000/mo - 5,000 limit and up.

Rental Reimbursement: if you NEED your vehicle - then you need this coverage unless you have AAA or something similar. It's THE first question 99% of the people ask us when they call to report a claim - "when do I get my rental car?"

Anyway - that's kind of it in a nutshell - if you have more specific questions feel free to PM me or reply here and I'll try to answer them.

There are few links on my agency website that link to other sources with additional insurance related terms and so forth if that helps: http://www.km-insurance.com/index.html

[emily_gracesmama]

I upped our per person to $250,000/$500,000, per accident after my parents got rear-ended hard and my mom ended up with chronic back problems and had to have serious shoulder repair surgery too. They fell under this really funky loop hole, in PA, cause they were driving my father's company car and all they could get was her coverage which was the $100k per person, then you take the lawyer's 30%, expert witness fees and reimbursement she had to pay her health insurance and she got very little for pain and misery that will continue until she's gone and she's only 58. If that happened to me at my age, it would suck and I wanted to know I would have a little more coverage.

[BillK]

:yeahthat:

Perfect example of why it's important to actually talk with an agent vs. just buying over the internet. I always try to convince people to consider 250/500 and a personal umbrella. I'd guess probably less than 5% actually take my advice though - and of the ones that do - they normally have had a similar experience to the pp. Unless someone has gone through a horrible situation like above - or knows someone personally that has - it's a tough sale.

[ray7694]

I would be very careful about chosing an insurance company. If they give a really cheap rate there is a reason. Stick with a reputable company. This is not the area to be trying to save a few bucks.

[kusumat]

I found that the auto insurance got through Costco was the best value- lower premium, more coverage and great customer servide. Though you need to be a Costco member and they may not offer the auto insurance in your state.

[Beckylove]

I am a former insurance company underwriter on the commercial side. So some of that translates to personal auto, but most of this is just my opinion.

I have 100/300 for Liability & UM/UIM. I think UM/UIM is very important because there are more and more people driving without insurance and with cheap-o insurance these days.

First Party Benefits is only in Pennsylvania, so if you aren't there, don't worry.

PIP laws vary greatly by state- it may be mandatory.

Medical payments coverage- may or may not be available by state. I would get it if you have a high health insurance deductible and/or paying the deductible out of pocket at one time would be a burden.

Collision coverage. I wouldn't on a 1998 vehicle unless resale value is very important to you. I have a 1996 that we are going to drive into the ground, so I have accepted at this point the the occasional ding will happen, it is not worth it to us to fix it. Keep in mind, if someone else hits you, their liability insurance would cover your repair (in most states).

I would investigate a ton of companies. I would look up the local State Farm, Farmers, & Allstate agents. I would check Progressive & Geiko online. I found my current agent based on the recommendation of my realtor and put my homeowners and auto with the same company. Ask who friends and neighbors use. Then make sure you are comparing the exact same coverage terms with each. I have had great service with State Farm & Geiko. I currently have Hanover through a local agent. I chose based on price and service/comfort with the relationship. HTH

[Zansu]

Check to see if you or DH belong to any associations that offer a discount. Alum groups, affinity groups, professional groups. The discounts can be significant!

[boogiemom]

Thanks SO much for all of the replies! That really helps!

FWIW, I live in MI. I was able to get ahold of one guy today who seemed to really know what he was talking about and he was able to give me some good information. Of course, he told me how I need to be leery of the less expensive companies I had talked to because they don't have good service, tough to deal with on claims, etc. I definitely don't want to go "cheap" in this area but I don't want to spend more money for equal coverages/service just because someone scared me into it either.

I truly appreciate the info and will continue in my search to find a "good" company who is also reasonably priced.

Thanks! :)

[BillK]

Thanks SO much for all of the replies! That really helps!

FWIW, I live in MI. I was able to get ahold of one guy today who seemed to really know what he was talking about and he was able to give me some good information. Of course, he told me how I need to be leery of the less expensive companies I had talked to because they don't have good service, tough to deal with on claims, etc. I definitely don't want to go "cheap" in this area but I don't want to spend more money for equal coverages/service just because someone scared me into it either.

I truly appreciate the info and will continue in my search to find a "good" company who is also reasonably priced.

Thanks! :)

Good to hear.

Please don't let yourself get caught up in the whole "this company doesn't spend $25 billion a year on advertising so they must not be good" mindset.

There are LOTS of insurance companies out there that you may have never even heard of that are fantastic - they just aren't gigantic advertising monstrosities like State Farm, Nationwide, Allstate etc...

I'd suggest you go to www.trustedchoice.com and try to locate a Trusted Choice agent near you who can provide you with quotes from multiple carriers.

[boogiemom]

Thanks so much, Bill! I'm going to call an agency in the next little town that I found thru your link. I would never have called them otherwise as I haven't heard anything about them. I truly appreciate the information!

:)

[BillK]

Thanks so much, Bill! I'm going to call an agency in the next little town that I found thru your link. I would never have called them otherwise as I haven't heard anything about them. I truly appreciate the information!

:)
You are welcome - I hope it works out well for you. I'd be curious to know if the Trusted Choice agency ends up being who you go with.