Shopping for car insurance, in California

[SandrA9810]

Ok, since Florida is the backward state and weird rules for insurance, I'm not really sure what to look for or the basic coverage that California needs. What would your recommended basic needs be?

The car is a 98 Ford Contour, purchased for 1800$, and valued at a little over 3,000$. Practically new condition with only 66,000 miles. So this is a car that's going to last a really long time, well at least hopefully be around for a really long time.

Are there any really good small companies that only operate in California, but not one of those off the wall cheap knock off places?

And no, I will not be parking in the back of the parking lot to avoid dings, bumps, and whatever else...

 

[jlewisinsyr]

I think you're a little optimistic on the value of your car, a few quick searches using a FULLY loaded (every option offered) retail price is less than $3,000, closer to $2,500. Also, I think we need to know more information before one can say what coverage is appropriate. State minimums are rarely a good option, for anyone.

Also, I'd question the need for collision and other than collision coverage on a 12 year old car.

You can find out a lot of information about insurance in CA by going to the CA Deparmtent of Insurance:

http://www.insurance.ca.gov/0100-consumers/0010-buying-insurance/0010-auto-insurance/

Personally, in NY I use AMICA. They're a smaller company but are rated as either the best auto insurance company in terms of complaint ratios (not just number) and overall customer satisfaction. From experience, the best judge of an insurance company is not when you buy your policy, but when you need to make a claim, especially an at-fault claim.

 

[tvguy]

If you paid $1800, that is what most insurance companies will value it at. Insurance won't pay you retail. I would price shop the major brands, and as the first reply notes, don't bother with collision. I would also consider a high deductable, I have $1,000 on my cars.

 

[jlewisinsyr]

If you paid $1800, that is what most insurance companies will value it at. Insurance won't pay you retail. I would price shop the major brands, and as the first reply notes, don't bother with collision. I would also consider a high deductable, I have $1,000 on my cars.

Not true, insurance pays you the fair replacement value of a car in the event you are covered from such loss and occur such loss. This isn't exactly retail value in most cases (often called black book value), but an insurance company must be able to locate a similar vehicle within a reasonable distance and pay tax on the replacement value (as you would be required to pay taxes).

 

[pixiewings71]

Sandra contact your local AAA office, we've had AAA for years and we pay a lot less for 2 cars with full coverage and 1 with liability only then we would pay with any other company. We have our home and cars insured thru AAA and I wouldn't change it, they are so easy to work with!

 

[dicar123]

Do yourself a HUGE favor and make sure you get uninsured/underinsured coverage. If you get hit by someone with no insurance, or just the minimum, this will make a huge difference. It didn't add much to our policy.

 

[tvguy]

Not true, insurance pays you the fair replacement value of a car in the event you are covered from such loss and occur such loss. This isn't exactly retail value in most cases (often called black book value), but an insurance company must be able to locate a similar vehicle within a reasonable distance and pay tax on the replacement value (as you would be required to pay taxes).

Why would an insurance company pay you more than you paid for a car? You would be getting a windfall. If OP paid $1800 for the car, it is an $1800 car. His loss would be $1800.

 

[disneychrista]

Why would an insurance company pay you more than you paid for a car? You would be getting a windfall. If OP paid $1800 for the car, it is an $1800 car. His loss would be $1800.

Because that is how insurance works. They will pay you what you would have to pay to get back into the vehicle. It really doesn't matter what you paid for it because you could have been given the car and therefore have paid nothing for the car.

 

[SandrA9810]

Well the actual sale of the care was 700$, with 1100$ in repairs. I know it sounds crazy, but it was just a series of events that caused it. The power steering locked up, which caused a leak, the leak caused the inside rubber ring of the balancing wheel to break off, and caused the water pump to leak. My bf really really wanted this car, so I agreed to do a diagnostic test on the car. I figured it'd be a waste of 115$, but the mechanic said it was a great car, in great condition (engine and transmission), and well worth 1800$.
It was a friend of the family's, and the guy was the only owner of the car. The title shows he drove it off the lot with 20 miles on it. Which is what I really wanted in a used car. So many people around here that are trying to get rid of their car, have only had it a few months to a year, and it's probably been sold off a half dozen time. No one knew the history of the car, what was wrong with it, titles were sketchy at best, and so were the repair history.

It's really an investment that I want to protect. I don't want to be one of those that are really underinsured, and wind up screwed in the end if an accident was to happen. I haven't had one in the ten years I've been driving, but no matter how safe I am, I can't account for any one else on the road.

The basic coverage, from all the online quotes, start at
15,000 per person,
30,000 per accident,
5-10,000 property damage.

UM/UIM
15,000 per person,
30,000 per accident

Then there's
Comprehensive
Collision
Collision Deductible waiver
Uninsured Motorist Property damage
Rental Car reimbursement
Roadside Assistance

With just the top two, almost all the quotes are pulling up at 250$ for a 6 month policy. And we plan to pay it up front, not in monthly payments. I did quotes from, Geico, State Farm, Allstate, Farmers, and Proggresive.

I just checked AAA, for the minimum, it's 206$ for a 6 month policy. Plus 54$ for a year of Roadside assistance (which I believe is well worth the cost).

Since 15-30-10 is not ideal, what is the ideal coverage??

 

[FireDancer]

Woohoo, free rides to the airport for everyone

 

[SandrA9810]

I just hope they're flying out of San Fransisco, I really want an excuse to drive over there.

 

[scrapquitler]

The basic coverage, from all the online quotes, start at
15,000 per person,
30,000 per accident,
5-10,000 property damage.

That seems ridiculously low to me.

I just looked up CT minimums: Bodily Injury Liability: $20,000/$40,000 Limit
Property Damage Liability: $10,000 Limit
Uninsured/Underinsured Motorist Bodily Injury: $20,000/$40,000 Limit

I'm sure that our coverage is at least 3 or 4 times higher than the CT Minimum.

Keep in mind that ONE person injured in an accident that is your fault, even with fairly minor injuries is likely to incur $15K worth of hospital bills, and YOU are responsible for what the insurance doesn't cover. And that liability follows you until you can pay it off. What happens if you have $40K per accident and you drive thru three or four kid in a crosswalk because your brakes fail?

I would be seriously nervous about only carrying the minimum.

 

[*Susan*]

For what it's worth, I've worked in the auto insurance field here in Ca. for 14 years.

You definitely want higher than the state minimums. I would recommend a minimum of $50k for Property Damage (coverage for damage you cause to another person's car or property ((you hit a fence, a pole, etc)) and at least $100/$300k for BI (pays for an injury to another person if you are deemed any % at fault). UM/UIM coveage is VERY important as there are far more uninsured/underinsured drivers out there than many realize.

Having "full" (meaning collision) coverage on an older car doesn't make sense mathematically, but it isn't unheard of. You also should always have comp which will pay you if the car is stolen, burned, if a tree or other object falls on the car, if your windshield breaks, etc.

Comp & collision is where they make their money. The extras don't cost as much, comparatively speaking.

Lastly, if you end up buying full coverage and your car is a total loss, what you paid for your car won't matter. Your carrier will pay you the actual cash value of your vehicle based on the local market on the date of the accident/fire/whatever caused your car to be a total.

Hope this helps.

 

[The Mystery Machine]

That seems ridiculously low to me.

I just looked up CT minimums: Bodily Injury Liability: $20,000/$40,000 Limit
Property Damage Liability: $10,000 Limit
Uninsured/Underinsured Motorist Bodily Injury: $20,000/$40,000 Limit

I'm sure that our coverage is at least 3 or 4 times higher than the CT Minimum.

Keep in mind that ONE person injured in an accident that is your fault, even with fairly minor injuries is likely to incur $15K worth of hospital bills, and YOU are responsible for what the insurance doesn't cover. And that liability follows you until you can pay it off. What happens if you have $40K per accident and you drive thru three or four kid in a crosswalk because your brakes fail?

I would be seriously nervous about only carrying the minimum.

Amen. Esp. if you do not have health insurance.

My sister's SIL was in a head on a few months ago, broke her ankle, needed surgery, and they carried the IL minimum (mom's car).

She is up to about 75,000 now. The insurance covered her initial stay after the accident and then after that since she was uninsured health-wise, they jacked up her price tag and pretty much it the minimum was used up.

We have an 1 mil. umbrella policy that requires us to carry 500,000 minimums.

The medical part on the insurance is the most important piece.

 

[jlewisinsyr]

Why would an insurance company pay you more than you paid for a car? You would be getting a windfall. If OP paid $1800 for the car, it is an $1800 car. His loss would be $1800.

What you pay for a car doesn't matter, it's the valuation of the vehicle. Example, my father bought a Corvette from a friend of his, he paid $30,000 for it and unfortunately wrecked it not too long after. The car was deemed a loss, he received a check for $38,000.

Auto insurance is replacement value, not purchased value insurance.

 

[golfgal]

Why would an insurance company pay you more than you paid for a car? You would be getting a windfall. If OP paid $1800 for the car, it is an $1800 car. His loss would be $1800.

It is not a windfall, it is replacing what you had, which is what insurance is designed to do. If you paid $1500 for a tv 5 years ago that now costs $500 and it was damaged in a fire, for example, you would get the $500 for a new tv. If you paid $500 for a couch 10 years ago and to replace the couch now would be $800, you would get $800 (assuming you have replacement cost coverage on your policy and if you don't you better get it because that $500 couch will net you about $30 if you don't).

Well the actual sale of the care was 700$, with 1100$ in repairs. I know it sounds crazy, but it was just a series of events that caused it. The power steering locked up, which caused a leak, the leak caused the inside rubber ring of the balancing wheel to break off, and caused the water pump to leak. My bf really really wanted this car, so I agreed to do a diagnostic test on the car. I figured it'd be a waste of 115$, but the mechanic said it was a great car, in great condition (engine and transmission), and well worth 1800$.
It was a friend of the family's, and the guy was the only owner of the car. The title shows he drove it off the lot with 20 miles on it. Which is what I really wanted in a used car. So many people around here that are trying to get rid of their car, have only had it a few months to a year, and it's probably been sold off a half dozen time. No one knew the history of the car, what was wrong with it, titles were sketchy at best, and so were the repair history.

It's really an investment that I want to protect. I don't want to be one of those that are really underinsured, and wind up screwed in the end if an accident was to happen. I haven't had one in the ten years I've been driving, but no matter how safe I am, I can't account for any one else on the road.

The basic coverage, from all the online quotes, start at
15,000 per person,
30,000 per accident,
5-10,000 property damage.

UM/UIM
15,000 per person,
30,000 per accident

Then there's
Comprehensive
Collision
Collision Deductible waiver
Uninsured Motorist Property damage
Rental Car reimbursement
Roadside Assistance

With just the top two, almost all the quotes are pulling up at 250$ for a 6 month policy. And we plan to pay it up front, not in monthly payments. I did quotes from, Geico, State Farm, Allstate, Farmers, and Proggresive.

I just checked AAA, for the minimum, it's 206$ for a 6 month policy. Plus 54$ for a year of Roadside assistance (which I believe is well worth the cost).

Since 15-30-10 is not ideal, what is the ideal coverage??

I think if you understand what those coverages are you will have a better understanding of what you should get:


15,000 per person,
30,000 per accident,
5-10,000 property damage.

This means if you cause an accident and hurt someone, you have $15,000 in insurance coverage to pay their medical bills. If there is more than one person in the car you have up to $30,000 to pay for everyone in the car's medical bills. The property damage coverage pays for damage to the other car-so if you total a new Toyota Corolla, for example, the insurance company will pay the first $5K-10K and YOU get to pay for the rest.

UM/UIM
15,000 per person,
30,000 per accident

This is if you are not at fault in an accident and someone like you with state minimums hits your and damages your car and hurts you-you get $15,000 to pay for your medical bills and no coverage to pay for your car.

Comprehensive--this is what covers things like accidents with a deer, hail damage, water damage, etc.-basically stuff that isn't an "accident"

Collision-this is the coverage that pays for damage to YOUR car in an accident

Collision Deductible waiver--not sure exactly what this covers as we don't have this in MN

Uninsured Motorist Property damage--this would pay for damage to YOUR car in the event of an accident with someone without insurance
Rental Car reimbursement--this would pay for part or all of a rental car while your car is being repaired in an at fault accident

Roadside Assistance-this would be reimbursement for towing, tire changing, out of gas service, etc (basically AAA services).

Now, I carry 100,300,100 coverage with the same in UM/UIM. We also have roadside assistance and $20/day for rental car coverage. We ALSO have a 2 Million dollar umbrella that extended all this coverage by 2 million.

In your situation if you can afford to replace the car you have if it is totaled in an accident, do not add collision coverage (the most expensive coverage out of all of this). If you can't afford to replace your car, add collision coverage. Not having collision coverage is often refereed to as "liability only" coverage.

 

[snowywhite89]

Ok, since Florida is the backward state and weird rules for insurance, I'm not really sure what to look for or the basic coverage that California needs. What would your recommended basic needs be?

The car is a 98 Ford Contour, purchased for 1800$, and valued at a little over 3,000$. Practically new condition with only 66,000 miles. So this is a car that's going to last a really long time, well at least hopefully be around for a really long time.

Are there any really good small companies that only operate in California, but not one of those off the wall cheap knock off places?

And no, I will not be parking in the back of the parking lot to avoid dings, bumps, and whatever else...

My little old lady girlfriend has a car she bought new in 1998 and she hardly drives it any where. It has twice that mileage on it and it in not in new condition and hers is garaged.

You really believe they only drove 5500 miles a year living in Modesta where you have to drive everywhere?

Insurance - Talk to an insurance agent or better yet ask those people whose house you live in for free what the CA insurance rules are and what company they have.

Well the actual sale of the care was 700$, with 1100$ in repairs. I know it sounds crazy, but it was just a series of events that caused it. The power steering locked up, which caused a leak, the leak caused the inside rubber ring of the balancing wheel to break off, and caused the water pump to leak. My bf really really wanted this car, so I agreed to do a diagnostic test on the car. I figured it'd be a waste of 115$, but the mechanic said it was a great car, in great condition (engine and transmission), and well worth 1800$.
It was a friend of the family's, and the guy was the only owner of the car. The title shows he drove it off the lot with 20 miles on it. Which is what I really wanted in a used car. So many people around here that are trying to get rid of their car, have only had it a few months to a year, and it's probably been sold off a half dozen time. No one knew the history of the car, what was wrong with it, titles were sketchy at best, and so were the repair history.

It's really an investment that I want to protect. I don't want to be one of those that are really underinsured, and wind up screwed in the end if an accident was to happen. I haven't had one in the ten years I've been driving, but no matter how safe I am, I can't account for any one else on the road.

The basic coverage, from all the online quotes, start at
15,000 per person,
30,000 per accident,
5-10,000 property damage.

UM/UIM
15,000 per person,
30,000 per accident

Then there's
Comprehensive
Collision
Collision Deductible waiver
Uninsured Motorist Property damage
Rental Car reimbursement
Roadside Assistance

With just the top two, almost all the quotes are pulling up at 250$ for a 6 month policy. And we plan to pay it up front, not in monthly payments. I did quotes from, Geico, State Farm, Allstate, Farmers, and Proggresive.

I just checked AAA, for the minimum, it's 206$ for a 6 month policy. Plus 54$ for a year of Roadside assistance (which I believe is well worth the cost).

Since 15-30-10 is not ideal, what is the ideal coverage??

Bolded 1 - That is not a like new car. That is a car that was not well maintained and probably had the odometer turned back.


Bolded 2 - Cars are not investments.

Insurance - Only you can decide what is ideal. You need to protect the people you are living with. If you cause an accident than they can be sued as the car is registered at that address and you live there. I would get what they carry. We have 100/300 with an umbrella policy.

 

[SaraJayne]

My little old lady girlfriend has a car she bought new in 1998 and she hardly drives it any where. It has twice that mileage on it and it in not in new condition and hers is garaged.

You really believe they only drove 5500 miles a year living in Modesta where you have to drive everywhere?

Insurance - Talk to an insurance agent or better yet ask those people whose house you live in for free what the CA insurance rules are and what company they have.







Bolded 1 - That is not a like new car. That is a car that was not well maintained and probably had the odometer turned back.


Bolded 2 - Cars are not investments.

Insurance - Only you can decide what is ideal. You need to protect the people you are living with. If you cause an accident than they can be sued as the car is registered at that address and you live there. I would get what they carry. We have 100/300 with an umbrella policy.

I was thinking there had to be some odometer tampering, too.

 

[Illuminations_Rocks]

Sticking with the actual question on the thread, if you don't have assets to protect, you don't need insanely high limits (because if you're sued they have nothing to take). Though you need more than 5k in property damage. In your position, I'd take at least 25/50/25 (25k/50k bodily injury, 25k pd) but would probably do 50k/100k/50k. I would pick up UM/UIM coverages in whatever limit you select for bodily injury. I would also pick up uninsured motorist property damage, because there really are a LOT of uninsured drivers in CA.

If you pick up collision coverage, the UMPD is just a collision deductible waiver, if you don't pick up collision, you're fine on the UMPD limit because your car isn't worth more than what the limit on UMPD coverage payout is. If you don't get UMPD and you don't get collision, and someone hits your car and leaves, you are totally out the money to repair it. If you get UMPD only, and someone hits your car and leaves, you can get the money to repair it. UMPD does NOT cover accidents that YOU were faulted in.

I don't think you can get rental coverage unless you get comp/collision. If you did get comp/collision, I'd get rental unless you can be without a rental car while your car is being repaired. It's really your decision on getting comp/collision. I look at it as, if my car was stolen or totaled tomorrow, can I afford a comparable car tomorrow? If the answer is no, I'd shell out the extra cash for comp/collision, and since your car is old, I'd get as low of a deductible as I could afford (at least on comp) so that I'd actually get some money from a payout (if your car's worth 2000 and you have a 1000 ded.... you only get 1000 tops).

I would definitely get roadside coverage. If you get AAA separately you wouldn't need roadside but it's a lot cheaper from the insurance companies than AAA (unless obviously you get AAA insurance coverage).

Hope to have helped some.

 

[golfgal]

Sticking with the actual question on the thread, if you don't have assets to protect, you don't need insanely high limits (because if you're sued they have nothing to take). Though you need more than 5k in property damage. In your position, I'd take at least 25/50/25 (25k/50k bodily injury, 25k pd) but would probably do 50k/100k/50k. I would pick up UM/UIM coverages in whatever limit you select for bodily injury. I would also pick up uninsured motorist property damage, because there really are a LOT of uninsured drivers in CA.

If you pick up collision coverage, the UMPD is just a collision deductible waiver, if you don't pick up collision, you're fine on the UMPD limit because your car isn't worth more than what the limit on UMPD coverage payout is. If you don't get UMPD and you don't get collision, and someone hits your car and leaves, you are totally out the money to repair it. If you get UMPD only, and someone hits your car and leaves, you can get the money to repair it. UMPD does NOT cover accidents that YOU were faulted in.

I don't think you can get rental coverage unless you get comp/collision. If you did get comp/collision, I'd get rental unless you can be without a rental car while your car is being repaired. It's really your decision on getting comp/collision. I look at it as, if my car was stolen or totaled tomorrow, can I afford a comparable car tomorrow? If the answer is no, I'd shell out the extra cash for comp/collision, and since your car is old, I'd get as low of a deductible as I could afford (at least on comp) so that I'd actually get some money from a payout (if your car's worth 2000 and you have a 1000 ded.... you only get 1000 tops).

I would definitely get roadside coverage. If you get AAA separately you wouldn't need roadside but it's a lot cheaper from the insurance companies than AAA (unless obviously you get AAA insurance coverage).

Hope to have helped some.

Just an FYI, in the case of bodily injury, your FUTURE WAGES can be garnished so EVERYONE has assets to protect. Your suggestions are WAY off base and ridiculously low for ANYONE. Insurance isn't about paying for damage to someone else, although it does do that, it is about protecting YOU. If you really want to be in a position where you have to decide to send your child to college or pay off a lawsuit from 20 years ago, go ahead and do what you suggest .

Also, going with a very low deductible doesn't really make sense either. Your premiums would jump quite a bit and instead of putting that money into insurance, put that money into savings to cover the deductible and then for money for a new car. Going with high deductibles doesn't save you that much money either. Price it out but for most people $500 deductibles on your car and $1000 on your home are the most cost effective.