car insurance

[Yvonne G]

I'd like some advice from anyone who is in the know about car insurance. My annual premium is coming due in January and it costs me $831. I've researched online and the basic required coverage for California would only cost me $350 annually. Naturally, the coverages are a lot less to none. I only drive about 5,000 miles a year...to the store and back or running the occasional errand, or picking up a rescue. My house is homesteaded. In your expert opinion, can I cut my coverage down to the basic minimum that California requires? (I won't hold you to it if I get in an accident and they sue my pants off!)

Yvonne

 

[Shelly]

What kind of car do you drive, and how much do you think it's worth?

 

[Maggie Cummings]

Will you have the money to repair your truck should you get in a wreck? If the wreck is your fault will you have the money to pay to repair the other vehicle? Or the hospital bills from the other people? Car insurance protects you...

 

[katesgoey]

Yvonne: Sure you could that, but keep in mind that most accidents (heaven forbid) occur closer to home and like Maggie says, the insurance protects you. What is your current deductible? Do you have your home insurance with the same company? (You can get discounts if so). You can lower your premiums by increasing your deductible if you haven't already and maintain the coverage you have, then put the deductible money in an interest bearing account and let it earn you more money....(I know not much interest earned right now). In my former life as a paralegal I first worked in personal injury - you would be shocked (or maybe not) at how many "little" accidents turn into huge medical bills once the "other guy" seeks representation....just something else to consider about insurance.

 

[dmmj]

I have been driving a motorcycle and car for over 25 years and no accidents or tickets, I think it is simply due to I am a very very alert driver, I can't tell you how many accidents I have avoided on both car and motorcyle, simply by being alert. So I have chosen to go with the lowest amount I can find, it is a gamble but it is one I am more than willing to take. My 2 cents.

 

[Yvonne G]

What kind of car do you drive, and how much do you think it's worth?

I drive a fairly new Dodge pick up. Have no idea what its worth.

I've been driving for over 50 years with only one accident when I was quite a bit younger. I got a speeding ticket when I first bought this Hemi (it has so much pep).

I'm not saying I'm canceling my insurance altogether, just cutting it way back to the minimum. My $800 policy includes $1,000 deductibles. But the $300 policy has zero coverage for medical and uninsured motorist. But then, with California's mandatory insurance law, do you think there are that many un-insured motorists on the road?

Thanks, everyone, for your insights. Its a tough decision for me to make.

Yvonne

 

[katesgoey]

Yes! There are that many uninsured motorists on the road. My daughter and her husband have been hit in each of their respective vehicles by uninsured motorist....twice just this year, once while my daughter's car was parked and the other while my son-in-law was at a gas station filling up his vehicle!! My niece was rear-ended in Fresno last year by an uninsured motorist. My nephew was hit two years ago by an uninsured motorist who ran a red light....each of these happened in different cities of the Central Valley and that's just within my family. It's not about your driving abilities, it's about the other guy's. Do you have full coverage now? When you say the "basic" policy, do you mean Personal and Property Damage only (PLPD)? If so, there usually is an uninsured motorist rider on those so the issue would be how much in liability coverage does PLPD w/uninsured motorist cover and what is that cost. Then you would only be concerned about your own vehicle and medical costs (again heaven forbid you ever needed to be concerned about it).

 

[chadk]

Besides all the folks who just don't want to buy insurance for financial reasons, think about all the illegal immagrants on the road... then all the folks who can't get insurance because they have too many accidents to many tickets or DUIs and probably don't even have a DL.

 

[Crazy1]

Yvonne, I have a car and a truck early 80s and 90 models. I carry full coverage on my car which is not worth much. I carry heavy medical for the other person. That way they can not sue the pants off me if I am at fault and they are hurt. When I spoke with my insurance agent I explained exactly what I wanted. My car would be totaled as it is not worth much but they have a clause that pays a set amount ($3500) if my car is damaged by an uninsured motorist and it will help me put a down on another. If my car was newer I would want it fixed or replaced.
My truck I drive minimal about 2000 miles a year if that. So I carry the bare minimum. It will not replace or repair it if I am the cause. Insurance IMHO is so that you are covered; YOUR property for what it is worth is covered in the event something happens. Accidents happen when people least expect them -duh that’s why they are called accidents.
But your Rep should be able to customize the insurance to meet your exact needs and wants. Make them explain everything to you. Initially it is a PITA but in the end you know exactly what you are covered for and for what event.