Ask your car insurance related questions

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Originally Posted By: javacontour
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.

EXCELLENT QUESTION!
As the years go by, more and more ins cos rate the highest rated driver to the highest rated vehicle, allowing them to charge you more $$. It used to be that you could declare a vehicle to a driver so the rate would reflect that 'risk' because they are the primary driver of that vehicle. The ins co argument is that it is likely that all residents of a household will have access to all vehicles and will drive them at some point. This is one point that I get more complaints about than just about anything else. HOWEVER, there are some companies that have SOME policies that will still rate a driver to a specific vehicle. This will really help when you have a teenage driver and his/her older car has no collision on it so it would be cheaper. My policy allows me to rate a driver to a specific vehicle, but they no longer offer it for new policies, and they even tried to get me to change it, but since I am grandfathered in to that policy, I kindly declined their invitation. You just have to call around until you find a company that will do it. It is doable, but it may take you some time. You are more likely to find a company that will do this for you if you are a 'preferred' risk, meaning that you have few if any losses, good credit, and clean driving records, and no lapses in coverage for at least a couple of years.
 
Originally Posted By: QuadDriver
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.


Rebuilt/salvage titles are something I really don't want to get in to for a number of reasons. But as a general rule, anytime an ins co takes possession of a totalled vehicle and it is resold, even to the prior owner, it will end up with a branded title even if the damage is 'minor' in someone's opinion.
 
Originally Posted By: expat
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?


Another excellent question!!!! You have swerved (Har!) into one of the gray areas of insurance claims. It's called 'diminished value'. It used to be more prevalent in the old days than it is now. It totally varies by state, and I would not ever surmise what your state laws do to address this issue. This is a difficult road to go down to get compensation for, even in a state that has statutes dealing with the issue. I do know of one situation that a claimant did get compensation for diminished value for the very reason that you stated, but it was not easy and was not quick. Your insurance company is not interested in your diminished value since the other person was at fault. You would have to most likely 'lawyer up' to try to get more $$ out of the other person's company arguing that you were not fully restored to your prior financial condition. Remember, that adjusters are there to pay the minimum to satisfy the claimant's indemnity, but no more. No company is going to line up to compensate for diminished value. Some new car dealerships use the arguemnent that if they do the repairs in their shop, when it comes time to trade in the car in to them, it won't affect the value of the car (as much). Don't know if that's true, but I've heard it. Do a search on dimished value and you will get more info that may be useful.
 
Originally Posted By: JDD
Originally Posted By: javacontour
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.

EXCELLENT QUESTION!
As the years go by, more and more ins cos rate the highest rated driver to the highest rated vehicle, allowing them to charge you more $$. It used to be that you could declare a vehicle to a driver so the rate would reflect that 'risk' because they are the primary driver of that vehicle. The ins co argument is that it is likely that all residents of a household will have access to all vehicles and will drive them at some point. This is one point that I get more complaints about than just about anything else. HOWEVER, there are some companies that have SOME policies that will still rate a driver to a specific vehicle. This will really help when you have a teenage driver and his/her older car has no collision on it so it would be cheaper. My policy allows me to rate a driver to a specific vehicle, but they no longer offer it for new policies, and they even tried to get me to change it, but since I am grandfathered in to that policy, I kindly declined their invitation. You just have to call around until you find a company that will do it. It is doable, but it may take you some time. You are more likely to find a company that will do this for you if you are a 'preferred' risk, meaning that you have few if any losses, good credit, and clean driving records, and no lapses in coverage for at least a couple of years.


I've been with the same company for 25 years now, USAA. I meet all the excellent criteria. It's probably been 10 years since my last claim, probably similar for my wife. Kids are honor students, etc, no accidents or tickets yet for either of them. (Ages 16 and 18.)

But since there are two one gets rated on one of the full coverage vehicles. I really think I'm going to get another policy from another company for the full coverage vehicles with just my wife and I on the policy and leave the Camry (liability only) with all four of us on it until they both move out.

We really do have them share the Camry. It plays them against one another and if one of them is acting foolish, the other will throw them under the bus. So this works for us, and will probably convince one of them to save and buy his/her own car.

But until then, I'm paying 3x what I paid for just my wife's and my coverage.
 
Originally Posted By: javacontour
Originally Posted By: JDD
Originally Posted By: javacontour
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.

EXCELLENT QUESTION!
As the years go by, more and more ins cos rate the highest rated driver to the highest rated vehicle, allowing them to charge you more $$. It used to be that you could declare a vehicle to a driver so the rate would reflect that 'risk' because they are the primary driver of that vehicle. The ins co argument is that it is likely that all residents of a household will have access to all vehicles and will drive them at some point. This is one point that I get more complaints about than just about anything else. HOWEVER, there are some companies that have SOME policies that will still rate a driver to a specific vehicle. This will really help when you have a teenage driver and his/her older car has no collision on it so it would be cheaper. My policy allows me to rate a driver to a specific vehicle, but they no longer offer it for new policies, and they even tried to get me to change it, but since I am grandfathered in to that policy, I kindly declined their invitation. You just have to call around until you find a company that will do it. It is doable, but it may take you some time. You are more likely to find a company that will do this for you if you are a 'preferred' risk, meaning that you have few if any losses, good credit, and clean driving records, and no lapses in coverage for at least a couple of years.


I've been with the same company for 25 years now, USAA. I meet all the excellent criteria. It's probably been 10 years since my last claim, probably similar for my wife. Kids are honor students, etc, no accidents or tickets yet for either of them. (Ages 16 and 18.)

But since there are two one gets rated on one of the full coverage vehicles. I really think I'm going to get another policy from another company for the full coverage vehicles with just my wife and I on the policy and leave the Camry (liability only) with all four of us on it until they both move out.

We really do have them share the Camry. It plays them against one another and if one of them is acting foolish, the other will throw them under the bus. So this works for us, and will probably convince one of them to save and buy his/her own car.

But until then, I'm paying 3x what I paid for just my wife's and my coverage.


I see and understand your dilemma. Any company would be thrilled to take you since you are a good 'risk' (their term not mine). You will just have to turn over a lot of rocks to find a policy that will allow you to link the driver to a specfic vehicle. As stated, this is becoming more rare. You may want to start with a 'regional' company that may have this feature. I will say that IMO, there is something to be said for being with a company for a long time. They are not likely to drop you for almost anything other than a slew of claims or a major violation (read DUI etc). Doesn't mean your rate won't go up, but you're not likely to be dropped. Your kids will someday be on their own and have their own policies. Those few years that they are drivers and still at home get sort of expensive, insurance-wise. I will not endorse or bash any company, but I personally like the company you are with due to vicarious experiences thru freinds and family members. It is my understanding that your company actually is one of the better ones for younger driver rates, but I have no evidence of that, just something I have heard. Also be aware, that a company that will do what you are asking may have higher rates on the parents than your current company, so the difference may be closer to a wash than you might be looking for if that is the case on the youthful driver rates.
 
JDD, I have 4 vehicles and 2 drivers, my average cost of insuring each car is $440/6month,
if I keep all 4 insured, it costs me $440+$440+$440+$440, though we can only drive at most 2 vehicles at any given time.
is there a product out there that will allow me to insure all 4 and not have to full price?
(2 vehicles are used during the weekend, occasionaly)
 
Originally Posted By: stockrex
JDD, I have 4 vehicles and 2 drivers, my average cost of insuring each car is $440/6month,
if I keep all 4 insured, it costs me $440+$440+$440+$440, though we can only drive at most 2 vehicles at any given time.
is there a product out there that will allow me to insure all 4 and not have to full price?
(2 vehicles are used during the weekend, occasionaly)


yeah its called Erie insurance (not avail in all states) and is the cheapest by 40% over the next (usually state farm or nationwide) but you have to be 100% clean to get in. an examply: I have a brand new '10 jetta TDI, costs me $500/yr full boat and that includes gap insurance I got for the first year, 100K/300K limits with a $1M blanket, 500 deductible. Geico, said they will insure it for $100 a month. 15 minutes does what?
 
I got a bigger subscriber savings account check this year, due to the higher premiums and good market/claims history this year.

So I may shop around for coverage on the three full coverage vehicles and keep my policy with USAA with me, the wife and kids, if of course that makes financial sense.

If it doesn't, I'll stay the course. One is leaving for college in 9 months give or take, the 18 year old male, and perhaps that will help a bit.

Oddly, his 16 year old sister costs more, and that's because she is rated on one of the full coverage vehicles.

Perhaps I simply need another liability only beater for her to be the primary driver.
 
I've heard insurance companies occasionally pull credit reports and increase/decrease rates upon what they find. How much (percentage wise) would you expect a bankruptcy to increase ones rates?
 
Last edited:
Originally Posted By: stockrex
JDD, I have 4 vehicles and 2 drivers, my average cost of insuring each car is $440/6month,
if I keep all 4 insured, it costs me $440+$440+$440+$440, though we can only drive at most 2 vehicles at any given time.
is there a product out there that will allow me to insure all 4 and not have to full price?
(2 vehicles are used during the weekend, occasionaly)

Yes, one of the prior posts is correct, that you will most likely have to go to a regional company that will cut the rate when there are more vehicles than drivers. Regional carriers sometimes will do things differently to find customers since they don't advertise much. Pleasure use is less than commute or business use, and that is how your other 2 vehicles are hopefully rated, but you are 100% correct that your are paying for 4 vehicles when you have only 2 on the road at any time. It's called buying blue sky.
Lovely game isn't it?
 
Last edited:
Originally Posted By: ryansride2017
I've heard insurance companies occasionally pull credit reports and increase/decrease rates upon what they find. How much (percentage wise) would you expect a bankruptcy to increase ones rates?

This is one area that I personally have a hard time with. If you have a great loss history, shouldn't you get the best rate, regardless of your credit?? Insurance companies love the actuary game. They have all sorts of data that they use to determine what type of risk you are. Other than the state of WA, which has banned the credit rating practice, it has stood up in court because the ins cos proved that credit (good and bad) is one of the leading factors in predicting future losses. Credit scoring is big in determining rates. I would guess that 95% of companies do it. Some companies don't grade is as much as others, so that's why you have to call around to get quotes. If you have good credit, there are companies that will discount more than others. The converse it true, so It's hard to say how much it affects your rate. But if I were to guess on an average, a BK would make rate go up 15-20ish percent.
 
Originally Posted By: QuadDriver
Originally Posted By: stockrex
JDD, I have 4 vehicles and 2 drivers, my average cost of insuring each car is $440/6month,
if I keep all 4 insured, it costs me $440+$440+$440+$440, though we can only drive at most 2 vehicles at any given time.
is there a product out there that will allow me to insure all 4 and not have to full price?
(2 vehicles are used during the weekend, occasionaly)


yeah its called Erie insurance (not avail in all states) and is the cheapest by 40% over the next (usually state farm or nationwide) but you have to be 100% clean to get in. an examply: I have a brand new '10 jetta TDI, costs me $500/yr full boat and that includes gap insurance I got for the first year, 100K/300K limits with a $1M blanket, 500 deductible. Geico, said they will insure it for $100 a month. 15 minutes does what?

BINGO! This is exactly what I am talking about. You found a company that was looking for you. You fit what they want. You were right in their wheelhouse. Another example, there is one company that I know of that is cheap if you are 45 to 60 and have great credit. Before that, they are not competitive, nor after. Some companies ding you less with a high performance vehicle than others. Because credit scores are down in the horrible economy, those that have this challenge would do well to shop around til you find one that doesn't penalize you as much for it.
 
no chance, no clean record, quite a few accidents and claims, hit and runs, flood damage, wife got t-boned and was faulted. I am with a big nationwide ins through costco and I like them, not the cheapest and never had an issue with them.

I will look up Erie ins, thks
 
Originally Posted By: javacontour
I got a bigger subscriber savings account check this year, due to the higher premiums and good market/claims history this year.

So I may shop around for coverage on the three full coverage vehicles and keep my policy with USAA with me, the wife and kids, if of course that makes financial sense.

If it doesn't, I'll stay the course. One is leaving for college in 9 months give or take, the 18 year old male, and perhaps that will help a bit.

Oddly, his 16 year old sister costs more, and that's because she is rated on one of the full coverage vehicles.

Perhaps I simply need another liability only beater for her to be the primary driver.

Regarding your last line---assuming they will rate her on that vehicle. That's what I do. I just have a beater for the young driver that doesn't need collision. But I run the risk of getting nothing out the car if he has an at fault accident.
One thing I have seen that doesn't apply to you but may to others, is if you have a teen with a bad record, when they are 18, you can get them their own policy with no comp or collision on a beater. That way you only pay the high rate on one vehicle. Sometimes the comp and collision can be more than everything else on the policy for a young driver with a bad MVR. Many times I've seen a teen with multiple tickets/accidents drag the rest of the family into the non-standard market where premiums can be double the preferred rate companies. This is one way around that. Then you 'exclude' that driver on your main policy (though some states do not allow excluded drivers).
 
Originally Posted By: stockrex
no chance, no clean record, quite a few accidents and claims, hit and runs, flood damage, wife got t-boned and was faulted. I am with a big nationwide ins through costco and I like them, not the cheapest and never had an issue with them.

I will look up Erie ins, thks

The good news is that regardless of where you are today, in 3 years it can be all behind you and you can get back with a preferred rate company. That's how long it takes to clean up your MVR and CLUE (unless you have the dreaded DUI or worse and then it is much longer).
 
JDD, nope no DUI here, it will be hard to get a DUI when I don't drink ;-)
I think i have the preffered rate, as there is a small + sign next to my wife's name which points to "accidents forgiven"
my rate has not varied much since I moved to MI. but it is more here in the NO FAULT state than it was in Kansas city.

Originally Posted By: JDD

The good news is that regardless of where you are today, in 3 years it can be all behind you and you can get back with a preferred rate company. That's how long it takes to clean up your MVR and CLUE (unless you have the dreaded DUI or worse and then it is much longer).
 
Originally Posted By: JDD
Originally Posted By: javacontour


Perhaps I simply need another liability only beater for her to be the primary driver.

Regarding your last line---assuming they will rate her on that vehicle. That's what I do. I just have a beater for the young driver that doesn't need collision. But I run the risk of getting nothing out the car if he has an at fault accident.
One thing I have seen that doesn't apply to you but may to others, is if you have a teen with a bad record, when they are 18, you can get them their own policy with no comp or collision on a beater. That way you only pay the high rate on one vehicle. Sometimes the comp and collision can be more than everything else on the policy for a young driver with a bad MVR. Many times I've seen a teen with multiple tickets/accidents drag the rest of the family into the non-standard market where premiums can be double the preferred rate companies. This is one way around that. Then you 'exclude' that driver on your main policy (though some states do not allow excluded drivers).


Reviving this post as it's been 6 years.

Well, USAA did let me rate drivers for a specific vehicle. So my youngest is on our 99 Mercury Grand Marquis, oilBabe is now on the 2017 Rav4. I still have the Protege5 (or I may have been driving a Pontiac Vibe when this thread originated.) The 2002 Camry the two teen drivers were sharing was taken out of the fleet with 277k miles on it last October when the Rav4 came into the fleet.

The 2010 Altima is now driven by the 24 year old male and we added a 2003 Corolla for his younger soon to be 23 year old sister.

We stayed with USAA and they let me assign drivers to specific vehicles.

I will be glad when they are all off the payroll
smile.gif


Holy Thread Resurrection!
 
Javacontour,

we changed auto insurance providers exactly for that reason:
they wanted me+wifey to foot the bill for additional driver for SIL (different car and insurance provider)
and they didn't provide a driver exclude list....

...and they all of a sudden had an extreme raise in IL.... yeah right..
 
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