I'm not selling anything. I'm just a BITOG junkie willing to help. I have been in the insurance business 17 years and have a pretty good idea about the whole car insurance thing. If you have any questions, I would do my best to answer them. Please no questions on how much a car would be to insure---way too many variables. Just general car insurance questions. I know it can be confusing, and basic info can be hard to come by from someone trying to sell you something.
Ask your car insurance related questions
- Thread starter JDD
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How long of a car's life do you think it is advantageous to have collision coverage, if you are financially able to handle the loss? It seems like a good value when the car is new, because the premium is the same regardless of the car's age (true?), but after the car is a certain age, it does not make sense. Why don't the premiums decline as the car devalues? I don't buy the standard response that it costs the same to repair a new car as an old car. The total loss potential on an older car is not as great, yet the premium is the same.
If your car is very old (lets say 14yrs old), someone rear ends you and totals the car (minor damage, but because of age the car isn't worth much), will the insurance company cut you a check for the value AND take your car, or will they let u keep the money and the car because it is so old?
Yes I am trying to decide on my 98 Taurus whether to have collision as well.
1st question--generally 10 years. Unless you have a upper end car, then 12-14 years is average. 2nd question--most of your ins has to do with bodily injury and damage to other peoples' cars/property, so age doesn't factor into premium in those areas. Your physical damage (comprehensive and collision)premiums 'should' go down some as the car ages, but you're correct, they don't always, depending on the company. Most phys dam claims are not total losses and there is not much difference as you might think in those repairs if you get new parts. Labor costs per hour and parts are pretty similar between, say a 2 year old buick and a 6 year old buick. You are correct that the total loss $$ amount is significantly less on an older car. Just another way the companies get you---
As a side note--you can keep comprehensive on an older vehicle and drop the collision, which can save you some $
As a side note--you can keep comprehensive on an older vehicle and drop the collision, which can save you some $
RE: 14 yr old car--if the ins company 'totals' the car, they in theory give you the $$ to go get a similar car. It's called indemnity. You are 'restored' to your prior financial condition. That's why they give you sales tax as well on a total. So, they basically are buying your car from you, that's why they end up with it. Most companies (not all for sure) will allow you to buy the 'salvage' back if you want to fix it up. Agreeing on a salvage value and the totaled vehicle value can be a challenging experience. There can be a lot of back and forth on it. Buying back your lightly damaged 'total' and fixing it yourself can be a good deal.
Originally Posted By: oilboy123
Yes I am trying to decide on my 98 Taurus whether to have collision as well.
Once you own your car outright, no one can force you to buy collision or comp (fire, theft, wind, vandalism etc). For example, I don't have collision of 2 out of 4 of my cars. But I do carry comp, because it is so cheap. The way I look at it is this--If that car got totalled--would it be a great financial strain to not get anything for the car and have to replace it? For myself, if the car was worth more than $5000, I would probably keep collision on it, but that is just me.
Yes I am trying to decide on my 98 Taurus whether to have collision as well.
Once you own your car outright, no one can force you to buy collision or comp (fire, theft, wind, vandalism etc). For example, I don't have collision of 2 out of 4 of my cars. But I do carry comp, because it is so cheap. The way I look at it is this--If that car got totalled--would it be a great financial strain to not get anything for the car and have to replace it? For myself, if the car was worth more than $5000, I would probably keep collision on it, but that is just me.
Originally Posted By: JDD
RE: 14 yr old car--if the ins company 'totals' the car, they in theory give you the $$ to go get a similar car. It's called indemnity. You are 'restored' to your prior financial condition. That's why they give you sales tax as well on a total. So, they basically are buying your car from you, that's why they end up with it. Most companies (not all for sure) will allow you to buy the 'salvage' back if you want to fix it up. Agreeing on a salvage value and the totaled vehicle value can be a challenging experience. There can be a lot of back and forth on it. Buying back your lightly damaged 'total' and fixing it yourself can be a good deal.
Ouch....that's exactly the predicament a friend of mine is in...she was sitting/stopped at a stop light in broad day light, dry weather, and a lady in a truck rear-ended her 1998 Honda Civic (hatchback, moonroof, the works), the vehicle IS still driving, albeit, smashed-the-[censored]-in-hatch....lol....her father recommended not opening the hatch, because most likely it will not close/seat properly......but yea, air bags didn't go off or anything, but the one place she took it to recommended by the "consierge service" of her insurance company, they told her the damage is too great, and would cost more than the car is worth....so she's stuck between a rock and a hard place. Sure, she can sell them the totaled car, and get maybe 2 grand....? And start looking for a replacement, or just ride it like it is....but it's still screwed up that the "at fault" driver gets away with the damage.
RE: 14 yr old car--if the ins company 'totals' the car, they in theory give you the $$ to go get a similar car. It's called indemnity. You are 'restored' to your prior financial condition. That's why they give you sales tax as well on a total. So, they basically are buying your car from you, that's why they end up with it. Most companies (not all for sure) will allow you to buy the 'salvage' back if you want to fix it up. Agreeing on a salvage value and the totaled vehicle value can be a challenging experience. There can be a lot of back and forth on it. Buying back your lightly damaged 'total' and fixing it yourself can be a good deal.
Ouch....that's exactly the predicament a friend of mine is in...she was sitting/stopped at a stop light in broad day light, dry weather, and a lady in a truck rear-ended her 1998 Honda Civic (hatchback, moonroof, the works), the vehicle IS still driving, albeit, smashed-the-[censored]-in-hatch....lol....her father recommended not opening the hatch, because most likely it will not close/seat properly......but yea, air bags didn't go off or anything, but the one place she took it to recommended by the "consierge service" of her insurance company, they told her the damage is too great, and would cost more than the car is worth....so she's stuck between a rock and a hard place. Sure, she can sell them the totaled car, and get maybe 2 grand....? And start looking for a replacement, or just ride it like it is....but it's still screwed up that the "at fault" driver gets away with the damage.
Hi
my 23 year old son had a slight accident he rear ended someone in bumper to bumper traffic under 10 mph on the Garden state parkway you can barely see the damage the car he hit a 2008 nissan has 1900.00 worth of damage (im sure they inflated the estimate) i was going to pay for it until i heard the amount.. Its just the bumper you really have to look at it close to see it. My question is how much will his insurance go up now...he has no tickets or other accidents..
This is in New Jersey
my 23 year old son had a slight accident he rear ended someone in bumper to bumper traffic under 10 mph on the Garden state parkway you can barely see the damage the car he hit a 2008 nissan has 1900.00 worth of damage (im sure they inflated the estimate) i was going to pay for it until i heard the amount.. Its just the bumper you really have to look at it close to see it. My question is how much will his insurance go up now...he has no tickets or other accidents..
This is in New Jersey
Originally Posted By: ahoier
Originally Posted By: JDD
RE: 14 yr old car--if the ins company 'totals' the car, they in theory give you the $$ to go get a similar car. It's called indemnity. You are 'restored' to your prior financial condition. That's why they give you sales tax as well on a total. So, they basically are buying your car from you, that's why they end up with it. Most companies (not all for sure) will allow you to buy the 'salvage' back if you want to fix it up. Agreeing on a salvage value and the totaled vehicle value can be a challenging experience. There can be a lot of back and forth on it. Buying back your lightly damaged 'total' and fixing it yourself can be a good deal.
Ouch....that's exactly the predicament a friend of mine is in...she was sitting/stopped at a stop light in broad day light, dry weather, and a lady in a truck rear-ended her 1998 Honda Civic (hatchback, moonroof, the works), the vehicle IS still driving, albeit, smashed-the-[censored]-in-hatch....lol....her father recommended not opening the hatch, because most likely it will not close/seat properly......but yea, air bags didn't go off or anything, but the one place she took it to recommended by the "consierge service" of her insurance company, they told her the damage is too great, and would cost more than the car is worth....so she's stuck between a rock and a hard place. Sure, she can sell them the totaled car, and get maybe 2 grand....? And start looking for a replacement, or just ride it like it is....but it's still screwed up that the "at fault" driver gets away with the damage.
She doesn't have to fix the car. She can just get the money for the cost of repairs from the lady's insurance company and keep it and drive the car as is or fix it how/when she wants to.
Originally Posted By: JDD
RE: 14 yr old car--if the ins company 'totals' the car, they in theory give you the $$ to go get a similar car. It's called indemnity. You are 'restored' to your prior financial condition. That's why they give you sales tax as well on a total. So, they basically are buying your car from you, that's why they end up with it. Most companies (not all for sure) will allow you to buy the 'salvage' back if you want to fix it up. Agreeing on a salvage value and the totaled vehicle value can be a challenging experience. There can be a lot of back and forth on it. Buying back your lightly damaged 'total' and fixing it yourself can be a good deal.
Ouch....that's exactly the predicament a friend of mine is in...she was sitting/stopped at a stop light in broad day light, dry weather, and a lady in a truck rear-ended her 1998 Honda Civic (hatchback, moonroof, the works), the vehicle IS still driving, albeit, smashed-the-[censored]-in-hatch....lol....her father recommended not opening the hatch, because most likely it will not close/seat properly......but yea, air bags didn't go off or anything, but the one place she took it to recommended by the "consierge service" of her insurance company, they told her the damage is too great, and would cost more than the car is worth....so she's stuck between a rock and a hard place. Sure, she can sell them the totaled car, and get maybe 2 grand....? And start looking for a replacement, or just ride it like it is....but it's still screwed up that the "at fault" driver gets away with the damage.
She doesn't have to fix the car. She can just get the money for the cost of repairs from the lady's insurance company and keep it and drive the car as is or fix it how/when she wants to.
Originally Posted By: Cutehumor
how do insurance companies handle accidents where an at fault driver has no insurance/no assets and have to pay out to their insured for bodily injuries? does the insured rates increase or get dropped after being sued?
This is a potential 'where you get screwed' in the whole insurance deal---if you don't have collision coverage. If you have collision, your own company will pay for the repairs and then they will go after the other driver and will even go after your deductible for you. In the meantime, you will be out your deductible. If you don't have collision, hopefully you bought UMPD, which is rally cheap (like a few bucks every 6 months) UMPD is uninsured motorist property damage. As far as the bodily injury, your uninsured motorist coverage will pay for that. It GENERALLY does not affect your rates since it is a no-at-fault incident. It is reported to C.L.U.E as a collision claim with a note that it was a not-at-fault accident. You will not get dropped for an incident like this.
Also, it doesn't matter that the other driver has no assets, if you have collision. The insurance company will go after them anyway and get a judgement against them anyway and your car gets fixed/totaled, whatever the case may be.
how do insurance companies handle accidents where an at fault driver has no insurance/no assets and have to pay out to their insured for bodily injuries? does the insured rates increase or get dropped after being sued?
This is a potential 'where you get screwed' in the whole insurance deal---if you don't have collision coverage. If you have collision, your own company will pay for the repairs and then they will go after the other driver and will even go after your deductible for you. In the meantime, you will be out your deductible. If you don't have collision, hopefully you bought UMPD, which is rally cheap (like a few bucks every 6 months) UMPD is uninsured motorist property damage. As far as the bodily injury, your uninsured motorist coverage will pay for that. It GENERALLY does not affect your rates since it is a no-at-fault incident. It is reported to C.L.U.E as a collision claim with a note that it was a not-at-fault accident. You will not get dropped for an incident like this.
Also, it doesn't matter that the other driver has no assets, if you have collision. The insurance company will go after them anyway and get a judgement against them anyway and your car gets fixed/totaled, whatever the case may be.
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Originally Posted By: crazyoildude
Hi
my 23 year old son had a slight accident he rear ended someone in bumper to bumper traffic under 10 mph on the Garden state parkway you can barely see the damage the car he hit a 2008 nissan has 1900.00 worth of damage (im sure they inflated the estimate) i was going to pay for it until i heard the amount.. Its just the bumper you really have to look at it close to see it. My question is how much will his insurance go up now...he has no tickets or other accidents..
This is in New Jersey
Every state is different, and I am not familiar with New Jersey's insurance laws or rates. Unfortunately, your son will have an at fault incident on his CLUE since the claim was turned in. CLUE is basically a repository of insurance claims information on anyone who has a home or auto policy. They track claims and who is/was at fault. How much the rate goes up is based on a LOT of factors--like what are your policy limits, what vehicle is your son rated on, area you live in, is your insurance policy a preferred rate or a non-preferred rate etc etc. CLUE info stays with you for 3 and sometimes 5 years in most states. This is just a guess, but I would say a ballpark figure might be 25 to 30% on your son for a couple of years. Some policies will do accident forgiveness of some type if you have been with them long enough. As far as the cost of repair, it gets real pricey real fast if the other driver get his bumper replaced instead of just repaired. Parts prices have soared over the past dozen years or so and that cost is not shocking from what I've seen over the years.
Hi
my 23 year old son had a slight accident he rear ended someone in bumper to bumper traffic under 10 mph on the Garden state parkway you can barely see the damage the car he hit a 2008 nissan has 1900.00 worth of damage (im sure they inflated the estimate) i was going to pay for it until i heard the amount.. Its just the bumper you really have to look at it close to see it. My question is how much will his insurance go up now...he has no tickets or other accidents..
This is in New Jersey
Every state is different, and I am not familiar with New Jersey's insurance laws or rates. Unfortunately, your son will have an at fault incident on his CLUE since the claim was turned in. CLUE is basically a repository of insurance claims information on anyone who has a home or auto policy. They track claims and who is/was at fault. How much the rate goes up is based on a LOT of factors--like what are your policy limits, what vehicle is your son rated on, area you live in, is your insurance policy a preferred rate or a non-preferred rate etc etc. CLUE info stays with you for 3 and sometimes 5 years in most states. This is just a guess, but I would say a ballpark figure might be 25 to 30% on your son for a couple of years. Some policies will do accident forgiveness of some type if you have been with them long enough. As far as the cost of repair, it gets real pricey real fast if the other driver get his bumper replaced instead of just repaired. Parts prices have soared over the past dozen years or so and that cost is not shocking from what I've seen over the years.
Additional info re: Cutehumor. Suing your own insurance company for bodily injury is never fun or easy, even on an uninsured motorist situation. Most of an auto insurance policy deals with bodily injury (your and others) and part of that is coverage for uninsured motorist bodily injury. Remember, your ins company will go after the other driver/owner of the other vehicle and will try to get reimbursed for any money they pay out to you for medical expenses and damage to your car. Even if they can't collect $$ from the other party, they usually go after them anyway and get a judgement and hope to get some money from them at some point down the road.
My car cost me nothing...I claimed it for a non paid debt.I've had it 5 years now,so it owes me nothing.I tried to give it away a few months ago and no one wanted it.It has 3rd party,fire and theft - in case I hit someone,and if it gets stolen and torched.
Wow---you have a fun one. First off, I would never give any legal advice, since I am not qualified. Multi-car accidents can get messy. But I feel OK in saying that IME, do what your company says and be cooperative. Whenever there is a big PD claim or a potential injury claim, it is not uncommon that the insurance company wants to do their own investigation. They don't want to pay out any more than they have to. As far as the Prius, since your company hasn't been notified, I suspect that they may have turned in a claim to their own company and it is being handled thru them and at some point they will subrogate against one or both of the other companies. Hopefully you can stay below your PD limit. I don't know CA laws, but some states have 'comparitive neglegence' provisions in which basically the cost is shared between parties based on their percentage of the negligence as the courts find it for that particular incident. Often police reports and witnesses will be a factor in this. This may work in your favor if your state laws allow for it with regards to the Prius. I have had problems getting timely police accident reports out of CA before. I will also say that I have seen some really sloppy accident reports over the years. I've also seen some very thorough ones as well. I don't want to get into specifics here, but a sloppy accident report can be a real bugger if it ends up just muddying the water. Bottom line--as much as most people don't like ins companies, this is their arena, and they pretty much know what they are doing. If it were me, I would like to see my accident report and dispute anything I did not feel is accurate, sooner than later while memories are fresh.
Originally Posted By: JDD
I'm not selling anything. I'm just a BITOG junkie willing to help. I have been in the insurance business 17 years and have a pretty good idea about the whole car insurance thing. If you have any questions, I would do my best to answer them. Please no questions on how much a car would be to insure---way too many variables. Just general car insurance questions. I know it can be confusing, and basic info can be hard to come by from someone trying to sell you something.
I have four cars and two teens. I only allow the teens to drive one of the cars, but am rated for the teens on all of them.
How can I structure my insurance such that the teens are on their car and I'm not paying to cover them driving the cars they are not allowed to drive.
I'm not selling anything. I'm just a BITOG junkie willing to help. I have been in the insurance business 17 years and have a pretty good idea about the whole car insurance thing. If you have any questions, I would do my best to answer them. Please no questions on how much a car would be to insure---way too many variables. Just general car insurance questions. I know it can be confusing, and basic info can be hard to come by from someone trying to sell you something.
I have four cars and two teens. I only allow the teens to drive one of the cars, but am rated for the teens on all of them.
How can I structure my insurance such that the teens are on their car and I'm not paying to cover them driving the cars they are not allowed to drive.
Originally Posted By: JDD
RE: 14 yr old car--if the ins company 'totals' the car, they in theory give you the $$ to go get a similar car. It's called indemnity. You are 'restored' to your prior financial condition. That's why they give you sales tax as well on a total. So, they basically are buying your car from you, that's why they end up with it. Most companies (not all for sure) will allow you to buy the 'salvage' back if you want to fix it up. Agreeing on a salvage value and the totaled vehicle value can be a challenging experience. There can be a lot of back and forth on it. Buying back your lightly damaged 'total' and fixing it yourself can be a good deal.
Except the ins co's R-title it, making getting it back on the road challenging. MY shop does rebuild work, but I am not an insurance company shop. Too often I replace a hood, fender, header panel and some lights on a 'totalled' car and have to submit it to the inspection work (I am also an inspector) and then the owner has a rebuilt car with no structural or mechanical damage, worth 50% of its book value.
BUT, if the insurance companys are friendly with a garage, they sell it to the adjuster, without R-title, who gets the work done for the same price (to add insult to injury often *I* and contracted by the adjuster to do the work) then the car is sold from a friendly lot as used, no R-title.
I complained with documentation to the PA insurance commish, but they can care less what an insurance company does. I guess I dont have enuf $$ to lobby.
RE: 14 yr old car--if the ins company 'totals' the car, they in theory give you the $$ to go get a similar car. It's called indemnity. You are 'restored' to your prior financial condition. That's why they give you sales tax as well on a total. So, they basically are buying your car from you, that's why they end up with it. Most companies (not all for sure) will allow you to buy the 'salvage' back if you want to fix it up. Agreeing on a salvage value and the totaled vehicle value can be a challenging experience. There can be a lot of back and forth on it. Buying back your lightly damaged 'total' and fixing it yourself can be a good deal.
Except the ins co's R-title it, making getting it back on the road challenging. MY shop does rebuild work, but I am not an insurance company shop. Too often I replace a hood, fender, header panel and some lights on a 'totalled' car and have to submit it to the inspection work (I am also an inspector) and then the owner has a rebuilt car with no structural or mechanical damage, worth 50% of its book value.
BUT, if the insurance companys are friendly with a garage, they sell it to the adjuster, without R-title, who gets the work done for the same price (to add insult to injury often *I* and contracted by the adjuster to do the work) then the car is sold from a friendly lot as used, no R-title.
I complained with documentation to the PA insurance commish, but they can care less what an insurance company does. I guess I dont have enuf $$ to lobby.
I have had this problem in the past, please advise.
Say I have a 3 year old car, and some idiot rear ends me, and does extensive damage. My/His insurance pays for the repairs and all is well, But when I come to sell the car, I have to declare that the car had extensive damage, and as such is devalued to some degree!
I feel that I should be compensated for the lost value the collision caused to my vehicle. My Insurance says "Too bad Buddy"
Is that right?
Say I have a 3 year old car, and some idiot rear ends me, and does extensive damage. My/His insurance pays for the repairs and all is well, But when I come to sell the car, I have to declare that the car had extensive damage, and as such is devalued to some degree!
I feel that I should be compensated for the lost value the collision caused to my vehicle. My Insurance says "Too bad Buddy"
Is that right?
Originally Posted By: eljefino
A few years back wife got a minor rear ender... torn bumper cover mostly. The "hitter" offered through his insurance to pay for the damage, or to somehow reimburse his insurance company for the payout. Does this save him an accident on his "record"? He's a really lousy driver-- she sees him once a month (vanity plate) with a cell phone jammed in his ear and dents on his various cars-- and probably saving his insurance for "the (next) big payout."
Is is at all fraudulent to get an estimate from a body shop, submit it, get a check, endorse/deposit it, and then drive around with an unfixed car? Do you have to use an offline/non-preferred body shop to get this estimate... as insurance has direct pay/ check-free arrangements with the big shops? Is there any directory of these shops?
First question--If that claim was turned it to an insurance company, he will have an at fault accident on his CLUE record. I have seen CLUE records show an at fault situation when a claim was reported, but the person paid directly to the claimant thinking that it would not show up. Basically, if you notify an insurance company of an incident, it will show up on somebody's CLUE at an at fault incident. Second: The only time 'fraud' would enter into it, is if you have a lien holder/loss payee on the vehicle. In that case, the payment should go to the loss payee (read: bank/credit union) and then they would relase the funds to the loss payee--that's why they're called a loss payee. They want to protect their collateral and make sure the car gets fixed so it's value is kept up. Fraud could be claimed if you told the other insurance company you had no loss payee and had them send you the $$ directly or if you signed a check on bahalf of the loss payee. If there is no loss payee, you can get $$ from the other person's ins co and you don't necessarily have to fix the car. You do have a choice. The only issue would be if the car was unsafe to operate and then you would have law enforcement or DMV issues to deal with. Also, if you don't fix the car and you have an accident later, it could be shown that your car was unsafe and you could end up being found at fault because the condition of the car. An example could be a broken light, cracked windshield, damaged suspension etc. Lastly, more and more ins companies are using preferred shops. There is no public 'list' per se, but the ins co could give you the info you asked for it most likely. If you are persistent enough, you can get you car fixed at your preferred shop, but sometimes you have to put up a stink. Again, you don't necessarily have to fix your car if the damage is minor and you would rather have $$ instead of a dented body panel. The claim payment to you basically 'indemmifies' you, or in other words, you are restored to your prior financial condition. What you choose to do with payment is your choce (for vehicles that have no lien holder/loss payee).
A few years back wife got a minor rear ender... torn bumper cover mostly. The "hitter" offered through his insurance to pay for the damage, or to somehow reimburse his insurance company for the payout. Does this save him an accident on his "record"? He's a really lousy driver-- she sees him once a month (vanity plate) with a cell phone jammed in his ear and dents on his various cars-- and probably saving his insurance for "the (next) big payout."
Is is at all fraudulent to get an estimate from a body shop, submit it, get a check, endorse/deposit it, and then drive around with an unfixed car? Do you have to use an offline/non-preferred body shop to get this estimate... as insurance has direct pay/ check-free arrangements with the big shops? Is there any directory of these shops?
First question--If that claim was turned it to an insurance company, he will have an at fault accident on his CLUE record. I have seen CLUE records show an at fault situation when a claim was reported, but the person paid directly to the claimant thinking that it would not show up. Basically, if you notify an insurance company of an incident, it will show up on somebody's CLUE at an at fault incident. Second: The only time 'fraud' would enter into it, is if you have a lien holder/loss payee on the vehicle. In that case, the payment should go to the loss payee (read: bank/credit union) and then they would relase the funds to the loss payee--that's why they're called a loss payee. They want to protect their collateral and make sure the car gets fixed so it's value is kept up. Fraud could be claimed if you told the other insurance company you had no loss payee and had them send you the $$ directly or if you signed a check on bahalf of the loss payee. If there is no loss payee, you can get $$ from the other person's ins co and you don't necessarily have to fix the car. You do have a choice. The only issue would be if the car was unsafe to operate and then you would have law enforcement or DMV issues to deal with. Also, if you don't fix the car and you have an accident later, it could be shown that your car was unsafe and you could end up being found at fault because the condition of the car. An example could be a broken light, cracked windshield, damaged suspension etc. Lastly, more and more ins companies are using preferred shops. There is no public 'list' per se, but the ins co could give you the info you asked for it most likely. If you are persistent enough, you can get you car fixed at your preferred shop, but sometimes you have to put up a stink. Again, you don't necessarily have to fix your car if the damage is minor and you would rather have $$ instead of a dented body panel. The claim payment to you basically 'indemmifies' you, or in other words, you are restored to your prior financial condition. What you choose to do with payment is your choce (for vehicles that have no lien holder/loss payee).
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