Auto Insurance Advice

[BrentNClemson]

I'll try not to make this long...just lookin for a little advice on car insurance.

To start off w/ I'm 21 in college and recently bought a new DD (94 4Runner) while keeping my 91 XJ for trail use. My dad has always paid for car insurance and said he would continue to do so until graduation, but no more than he's paying now (hey, at least I bought the vehicles myself). I've been lookin at a Geico plan under my own name to get the cost of insuring both vehicles closer to what he's willing to pay...so I don't have to shell out as much. Plan is to get minimum coverage on the XJ and a good amount of coverage (comprehensive and collision w/ a $500 deductible) on the yota.

Looking at the different options I need to decide an appropriate amount for Bodily Injury Liability, Property Damage Liability, Uninsured motorist, underinsured motorist, etc. Geico recommends getting liability insurance equal to your assets...which I really don't have much of (vehicles are the most valuable thing I own). I'm looking anywhere from $15,000 (SC minimum) to $300,000 (current amount under parents insurance).

What's the thought process on picking the numbers for these coverages? Any suggestions? I know it depends on a bunch of stuff, but this is the first time I've really dealt w/ insurance this much so any advice is helpful...thanks guys!

-Brent

[5-90]

First - I refuse to support Geico because they support HCI and VPC - if you're a gunner, you should do the same.

Second - it's usually worth spending a little money on something if you want good service. It's also worth it to take a hard look at your needs, and see what you can do to change or reduce them in cases like this.

If you're going to keep your XJ as a "trail only" rig, look into what minimal coverage you will need if you're going to tow it back and forth (if there's no outstanding lien against it, you can probably get away with Comprehensive only (which is theft and/or Acts of God) and some other minimal coverage, and that should keep it down nicely. My project 87 carries Comp-only as the fourth vehicle on our policy with AAA, and it costs me a mere $18 per year to do so.)

Second, the reason that the state usually sets minima for PL/PD coverage (Personal Liability/Property Damage) is to keep down things like insurance fraud - ever hear of "swoop and squat?" Look it up sometime. By setting the minima as maximum available compensation excepting exceptional circumstances, they keep people from treating roads accidents as a "get rich quick" plan - the idea behind PL coverage is to allow for the coverage of medical bills for the other party, and PD is for replacement value of damaged property.

50K/50K PL/PD is usually quite reasonable, and in excess of most state's requirements. UIM is always a good idea, and since you don't have much in the way of assets, you are conveniently limited.

It should be borne in mind that if a bank holds a lien against a vehicle, THEY specify minimum coverage as a condition of the loan - which may be equal to or in excess of the requirements of the state.

A few strategies for lowering auto insurance premiums:
Raise your deductible. The best way to do this is to set aside a dedicated accoun that YOU DON'T TOUCH - just put a little money in it at a time. Bulid it up to $500 - that's your current deductible. When it hits $750, raise the deductible again. Same at $1000, and each bracket upwards. This will save you bucks!
Check with your local/state PD for any sort of advanced driver training - especially anything under "Defensive Driving." These shoud always be worth a drop in premiums - you are taking interest in becoming a safer driver.
Since you're still in school, keep your GPA up. I think if you're at 3.0 or higher, there's a discout - and another one at a consistent 3.75 or so.
Check the rates for various ZIP codes - it may be worth moving a few miles. We moved one out here - about a mile and a half, just enough to change ZIP codes. Barely. We got hiked by about 18% on premiums - just from the ZIP code change! That works both ways - you may be able to move a few miles and find a lower price ZIP code.
Go with a larger carrier - AAA is good (to me.) Not only do you have an easier time with your claims (if need be - hopefully not,) but they can help you find courses like I mentioned above. The motor league benefits can come in handy as well.
If you have more than just your auto policy (like Renter's coverage,) find a way to consolidate your coverage with a single underwriter - you usually get a discount for that, and usually on ALL policies!
Above all else, ASK your carrier what you can do to minimise your premium. Why? This shows them that you are interested in making less work FOR THEM! They're always willing to minimise their claims - it looks good on their P&L sheets, and it makes them easier to deal with for you. Ask, ASK, ASK!

5-90

[Eagle]

You're going to put collision coverage on a 12 year old vehicle, and then think about skimping on liability coverage?

You're going to college. You're going to come out with a degree, and a profession. If, God forbid, you are involved in a serious or fatal accident for which you are found to be at fault, a jury could award the "victims" a goodly chunk of your salary for the rest of your natural life. $15,000 minimum is so pitifully low that it's not even a joke.

Forget collision coverage. Go with comprehensive, and as much liability coverage as you can afford, plus a bit more. Hopefully you'll never need it, but if you do ... that's why it's called "insurance."

[BrentNClemson]

Thanks for the replies, guys, it helped a lot. I think I've decided to go ahead and get coverage under my parents insurance (USAA). I understand the importance of having adequate liability now, I definitely don't want to have to pay from future wages for an accident. The coverage I'm considering includes 300/500 bodily injury, 50k property damage and for under/uninsured motorists: 50/100 bodily, 10k property damage. Am I correct that the under/uninsured coverage covers me if someone esle is at fault? I figured any medical bills over the 50k would be covered by my health insurance and property damage wouldn't be more than 10k because neither vehicle is worth that much...that sound right?

As far as personal injury protection goes, I declined any coverage. Again, shouldn't health insurance cover anything?

I declined comprehensive and collision on the Jeep because of it's low value, but got both comp and collision w/ a 1k deductible on the Toyota. I did this because the savings over 1.5 years (how much longer I'll be on their insurance) wouldn't be near what I would get if I were to actually total the vehicle.

Going this route I'll owe $150 every 6 months, but that's not too bad for a more reliable daily driver. And I plan on giving the company a call to see if there are any other ways to lower the premium.

Again, any opinions are definitely welcome and I appreciate the help! Sorry it's so long...

-Brent

[Ludakris]

Thanks for the replies, guys, it helped a lot. I think I've decided to go ahead and get coverage under my parents insurance (USAA).

-Brent


Good Call.. I have USAA from my parents (both Govt workers).. now that i am married, I have everything under them. They have sooo many services from banking to vacations, to jewelry, to rental cars.. Great Co. and have never had a problem in my 14yrs with them....

[IH8RDS]

I use USAA as well. Good people. I even financed my Jeep through them.

[BrentNClemson]

Well, since I'm eligible I could actually start a USAA policy under my own name. IH8RDS or ludakris, do you think this would work out better (opposed to staying in my father's name)? It would be at least a good head start if I decide to stick w/ them in the future. There isn't much of a price difference either.

What would you recommend for bodily injury and property damage liability coverage? Keep in mind I'm 21 and don't have any assets...but want to have enough coverage. I'm thinking 100k/200k and 50k would be a good starting point...any opinions?

[Ludakris]

it probably doesnt matter either way.. on my info I am listed as a member since 1991.. which was when I got my Learners Permit at 15... so they are really good about that stuff... if your parents dont mind you on their policy, you might want to stay on it for the time being. I honestly dont remember when I got my own, but it was a seamless transition..

as far as coverages go, I have the state requirements which are relatively high.. MD has alot of regulations when it comes to insurance and uninsured motorists. As for my XJ, I only have collision for now but will raise it only because if all four wheels and tires were stolen off of it, I would loose half of its value... but when you start having combination insurances with multiple drivers and extra vehicles it makes sense to spend the extra couple bucks for full coverage..