Car Insurance advice

Could you take a look at these and tell me if I need them and what coverage amounts you may have? Trying to lower my car insurance bill. I love Geico but it's about $2000 every 6 months. 3 drivers, me -40, hubby -44, and new driver -19

 

These coverages apply across all vehicles 
 

For Others

The below coverages pay out to other parties if the accident is your fault.

Bodily Injury Liability ?$334.10  ($30,000 per person/$60,000 per occurrence)

Pays if you are responsible for another person's injury or death in an auto accident. It also pays for your legal defense.

 

Property Damage Liability ?$507.50   ($20,000 per occurrence)

Pays if you are responsible for damage to another person's property.

Increase for only $5.00 per 6 months

 

For You

The below coverages pay out to you and your passengers.

Personal Injury Protection ?$120.10  ($2,500)

Covers you, your family, and your passengers if they are injured in an accident.

 

Uninsured Motorist Bodily Injury ?$23.40  ($30,000 per person/$60,000 per occurrence)

Pays for your injuries caused by a driver without insurance.

 

Uninsured Motorist Property Damage ?$9.60  ($20,000 per occurrence/$250 deductible)

Pays for damages to your vehicle caused by a driver without insurance.

 

Per Car - Paid Off 2011 Ford  Escape DS19 drives

 Vehicle total 6 month premium: $1,169.80

 

Comprehensive ?$83.70 Deductible: $250

Pays for vehicle and glass damage due to, among other causes, theft, vandalism, explosion and fire.

Collision ?$410.80  Deductible: $250

Pays for damages to your vehicle caused by a collision or when it overturns.

Recommendations for you:

Emergency Road Service ?

Add for only $12.90 per 6 months

Covers towing, lockout, labor for flat tires, or delivery of a loaned battery.

Rental Reimbursement ?

Add for only $31.40 per 6 months

Pays toward expenses for a rental car while repairs are being completed as a result of a covered loss.

 

Still owe $26K 2018 Subaru Forester - hubby and I 

Vehicle total 6 month premium: $742.60

 

Comprehensive ?$110.10  Deductible: $250

Pays for vehicle and glass damage due to, among other causes, theft, vandalism, explosion and fire.

Collision ?$313.10  Deductible: $250

Pays for damages to your vehicle caused by a collision or when it overturns.

Recommendations for you:

Emergency Road Service ?

Add for only $6.30 per 6 months

Covers towing, lockout, labor for flat tires, or delivery of a loaned battery.

Rental Reimbursement ?

Add for only $31.40 per 6 months

Pays toward expenses for a rental car while repairs are being completed as a result of a covered loss.

Mechanical Breakdown Insurance ?

Add for only $85.40 per 6 months

Covers auto repairs due to a mechanical failure.

 

Any words of wisdom?

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  • Why is your deductible so low?

    Reply Like
    • eloquentz
    • Numbers Wizard (Accountant), Acoustic Artist (Musician) and Jill of all Trades (Wife & Mother)
    • eloquentz
    • 4 mths ago
    • Reported - view

    Changing your deductible to $500 or $1000 will lower your insurance costs without changing your coverage.

    Reply Like
      • Stacy C
      • nursepower
      • 4 mths ago
      • Reported - view

      bevocat eloquentz I guess it's so low because I may be hard pressed to come up with $500 at once, but I now have $380 in my emergency savings so I suppose I could increase it. 

      Reply Like
      • bevocat
      • Sometimes, It Just Sucks to Be You
      • bevocat
      • 4 mths ago
      • 1
      • Reported - view

      Stacy C You should have a category with your deductible saved sitting and waiting for an eventuality. I have categories for my auto deductible, medical, and home. There have been those among us who have had claims against all three from the very same event, so best plan for it.

      Depending on how much the savings is, you can take the difference between the premium and the old premium and put that in a category and that takes care of that. It may take a few renewals without a claim to make up the deductible, but better to start now than to continue throwing money away for the benefit of GEICO.

      Reply Like 1
  • If you and your other drivers take a defensive driving course, Geico will give you a discount depending on your state. This link can tell you how much for your state:

    https://www.geico.com/save/discounts/defensive-driver-discounts/

    Could you stomach higher deductibles on comp and collision? That I would base more on how likely I think I am to be at fault for an accident/how likely it is I'll hit a deer or something. Changing those deductibles will probably have the biggest impact.

    Geico might not be the best choice for your state. It is for mine but you may need to look at more state specific literature.

    Reply Like
      • Stacy C
      • nursepower
      • 4 mths ago
      • Reported - view

      Tobias Per the Geico page for my state I have to be over 50. Too soon. 

      Reply Like
  • I've been with Geico FOREVER lol and love their service so I'd like to keep them. Doubling my deductibles only say $110 over 6 months, so doesn't quite seem worth it to me to have to come up with  another $250. Maybe I'm looking at it wrong. What about the personal injury? Do I need that if I have good health insurance?

    Reply Like
      • bevocat
      • Sometimes, It Just Sucks to Be You
      • bevocat
      • 4 mths ago
      • Reported - view

      Stacy C Yes, you do. Because you may have passengers that have medical bills too. Ask me how I know.

      Reply Like
      • Stacy C
      • nursepower
      • 4 mths ago
      • Reported - view

      bevocat Is that a bag I want to open? It's $120 though for $2500 of coverage. Is that a good deal?

      Reply Like
      • bevocat
      • Sometimes, It Just Sucks to Be You
      • bevocat
      • 4 mths ago
      • Reported - view

      Stacy C No, probably not. I have a $751 deductible (my lender won't allow anything over $1000-- guess why the insurance carriers do that wacky mess of $1 over what you expect?!), four times that much in coverage, and your coverage is still 2.5 times what I pay. But then I only have one vehicle, one driver, and I'm not a new driver. But what about medical payments instead? Is that coverage cheaper? It's not as good per my lawyer, but it's better than nothing to cover your butt if you're at fault and your passengers get hurt, if it's much less expensive it may be a good deal.

      Reply Like
      • Stacy C
      • nursepower
      • 4 mths ago
      • Reported - view

      bevocat Yes, my medical coverage is quite good. I have United through the County I work for. My MD visits have a $5 copay and the hospital is $25. My meds are $10/3 months supply each RX. 

      Reply Like
      • bevocat
      • Sometimes, It Just Sucks to Be You
      • bevocat
      • 4 mths ago
      • Reported - view

      Stacy C No no no, I don't mean your own medical coverage. I mean medical payments coverage as opposed to PIP coverage. From GEICO:

      Medical Coverages

      • Medical Payments coverage: may pay medical expenses related to a car accident
      • Personal Injury Protection coverage: may pay for your medical treatment, lost wages, or other accident-related expenses regardless of who caused the accident

      See the difference? If someone is in your car at the time of the accident, and you don't have any of this medical coverage, they're going to come after you for their medical bills, lost wages and other accident-related expenses. Meaning you'll probably be sued. If you don't have medical coverage on your auto insurance policy, that means GEICO will shrug and maybe tell you good luck.

      Reply Like
      • Stacy C
      • nursepower
      • 4 mths ago
      • Reported - view

      bevocat Per my understanding without the PIP I still have to pay a small amount for others in the vehicle $30 something. But i can waive for me and save 90$

      I think the Body injury Liability covers this (Bodily Injury Liability pays if you are responsible for another person's injury or death in an auto accident.)

      Reply Like
  • Having a new driver that's 19 years old is going to kill you. You could make them pay their portion, make them get their own policy on their own, or have a named driver exclusion and never, ever, ever let that person drive your cars.

    Reply Like
      • Stacy C
      • nursepower
      • 4 mths ago
      • Reported - view

      bevocat That wont work either. He has to go to college. My hubby shows as primary on the car, otherwise the premium would be much higher. 

       

      You are correct the son is expensive. I used to be on a 4 months plan with 2 months no payment due and it was under $200 each month. Adding him killed my premium. 

      Reply Like
      • bevocat
      • Sometimes, It Just Sucks to Be You
      • bevocat
      • 4 mths ago
      • Reported - view

      Stacy C Well, I don't know where you live, but lots of people go to college without driving, and there's no reason why that stops him from paying his portion. A (presumably) single, 19 year old male is just about the worst insurance risk there is, so you are going to pay through the nose for him.

      Reply Like
      • Tobias
      • Toviathan
      • 4 mths ago
      • 1
      • Reported - view

      bevocat Stacy C  as a former 19 year old Male, I can attest to this. Car insurance was mad expensive until around the time I turned 25. It got a tiny bit better every year the longer I went without any claims accidents or tickets though.

      Reply Like 1
    • eloquentz
    • Numbers Wizard (Accountant), Acoustic Artist (Musician) and Jill of all Trades (Wife & Mother)
    • eloquentz
    • 4 mths ago
    • Reported - view

    When I was a young driver (I am female), my insurance was also bonkers expensive for a few years.

    Reply Like
      • bevocat
      • Sometimes, It Just Sucks to Be You
      • bevocat
      • 4 mths ago
      • Reported - view

      eloquentz I was married at 17 and didn't get my license until 18, and my (ex)husband didn't get his until he was 23, so we saved some there. It did mean I had to drive him around everywhere, so I don't recommend that option!

      Reply Like
  • Stacy C I have a 20 yr old son. I feel your pain. When he got his license, our insurance premium skyrocketed (we also had a 20 yr old daughter on the policy at the same time, so you can just imagine what that was like) Within the first 3 months, he got a speeding ticket. That was strike one. We told him that any other violations and we would remove him from our policy or he could get a job (he was also a college student) and pay his own premium. 2 months later he was issued another moving violation. We followed through. He was mad as hell but so were we. That was about 2 years ago and he hasn't driven since. He's forced to take public transportation to and from college, which is not an easy trip, but money doesn't grow on trees and it was about time he figured that out. I wish we had stood our ground on things like this with our older children. Live and learn. My experience is that most kids these days think it's a given that their parents will lay out all the money for these things that should be privileges, earned, not just taken for granted. OK, now I'll get off my high horse and move on...................`

    Reply Like 5
  • The middle number, which is the total liability per accident ($60K), should be at least equal to your net worth. Raising the deductible will also help, but it sounds like you've got some other work to do there. With a $28K loan and $380 in savings, I'd be sweating. Get a small emergency cushion working for you, and then raise your deductible. 

    But yes, you are just going to be generally hosed until your son gets older or gets his own policy. It's not unreasonable to ask a 19 year old child  adult to pay his portion of the insurance, or some part thereof. It is not that complicated to earn $100 or so per month, even while being a diligent college student. In fact, it might even be good for his studies to have something else structuring his time a bit. I always tell my undergraduates that they need a job or activity that takes up 10 hours a week; otherwise, they will feel like they are only responsible for the 15 hours a week they are in the classroom. This results in them filling that seemingly unlimited "free" time with goofing off instead of treating their outside of class time as an important time to study. 

    Finally, the $28,000 car loan doesn't do good things for your collision insurance. Hopefully you also have GAP insurance on your loan. 

    Reply Like 2
      • Stacy C
      • nursepower
      • 4 mths ago
      • Reported - view

      WordTenor I do have Gap. Our net worth is still in the negative. Working on changing that. 

      Reply Like
      • WordTenor
      • Arranged the menu, the venue, the seating.
      • WordTenor
      • 4 mths ago
      • 1
      • Reported - view

      Stacy C Then you can lower the numbers  to whatever your state minimum is (these might be the minimums; they are pretty low). If you have no assets which someone could sue you for, you have nothing to insure. 

      Pay off the car, drop the amount of coverage, do something about the teenage boy, and raise the deductible. Those are the things that will lower these numbers. 

      Reply Like 1
      • Stacy C
      • nursepower
      • 4 mths ago
      • Reported - view

      WordTenor Thank you!

      Reply Like
  • Thanks everyone for the advice. 

    Reply Like
    • Voracious Reader
    • YNAB broke is not the absence of money, but rather the judgment that it has something more important to do.
    • Orange_Cheetah.3
    • 4 mths ago
    • 5
    • Reported - view

    I'm going to be the contrarian here for a minute, because everyone hates paying for insurance, just like everyone hates paying credit card interest and most people despise paying their taxes. 

    You may not feel you have anything to lose in a lawsuit, but your son could lose his future if he causes a major accident (more likely with a boy than a girl: younger women drivers have more accidents per mile but younger men drivers have costlier accidents per mile) and your liability coverage is the state minimum. 

    If he gets into an accident with a family of 4 and the family has combined injuries of 330,000 and your auto policy covers his liability up to 300,000 the insurance company has skin in the game to vigorously defend him in court and try to hash out some kind of shared liability. (Disclaimer: subject to the laws in your state and IADNAL Additional disclaimer: am a former insurance agent but haven't worked in the auto insurance industry in about 6 years, so some things may have changed.) If he has that same accident, same medical bills, and the coverage in the above post, GEICO is perfectly within its rights to write a check for 60K, admit fault, and wash their hands of the problem. Leaving your son with a lawsuit for 270K plus possibly work loss and pain and suffering damages and no GEICO funded attorneys. He could be forced into bankruptcy at 20 or have a garnishment against his wages for the next 15-30 years. Another factor: if he can AVOID accidents and earn and maintain good credit, when he does have assets to protect, in many states and with many companies, he will have an easier time falling into a preferred tier (which means lower premiums) if he is coming from a higher limit policy. 

    There is no such thing as inexpensive insurance for a 19 year old driving a Ford Escape. That said, increased liability limits don't generally make an enormous difference in premium relative to the protection they purchase. I don't advocate more insurance than you need, but price it out before you decide. 

    I've been with Geico FOREVER lol and love their service so I'd like to keep them. Doubling my deductibles only say $110 over 6 months, so doesn't quite seem worth it to me to have to come up with  another $250. Maybe I'm looking at it wrong. 

    Respectfully, I think you're looking at it wrong. If you go a year without an accident, you'll have paid $220  extra to keep your deductibles that low. Only 30 dollars less than you would have had to come up with if you had an accident. Pay yourself that 110 dollars when you pay your insurance premium. You could come up with 30 dollars if you had to, right? I would also price out not just the 500, but the 750 and 1K levels as well.

    For most people raising your deductibles and True Expense Funding them makes the most sense. Think of it this way: is it hard to come up with that 750/1K if you have an accident sooner rather than later? Definitely, but you could probably beg, borrow or steal (j/k, don't steal!) it if you absolutely had to. Especially as a multi-car family, if you had to delay repairing the car for a few weeks, while you robbed Peter for Paul (ever notice how Peter always gets the short end of the whack-a-mole?)  you might be able to work it out. Things you don't appear to have and probably don't need: you probably don't need roadside on the newer car purchase, and it might even be included with your warranty. Rental: you're a multi-car family, presumably you could juggle without rental if you needed to.

     With some companies, it's actually cheaper to acquire a 700 dollar beater for the 19 year old to drive and either assign him as the primary driver, or get him on a separate policy and put an iron wall between him and the nicer cars. Feel free to call up your agent and get him/her to run some scenarios. Find out what it would cost to get liability coverage only on a 2000 Nissan sedan or something...factor in 60 bucks or so for AAA if he's going to rely on it to commute or see what GEICO will charge for roadside for him (if they'll offer it on a liability only policy.) While you have your agent on the phone, make sure you're getting every discount you're entitled to, especially if you've had them for a long time. Have you bought a home (even if you don't insure it through them, most companies discount you just for being that responsible)? What are your son's grades? Could he qualify for a good student discount? If you're not a homeowner, ask about renter's insurance. With a 19 year old driver, sometimes a multi-policy discount is enough to outweigh the annual renter's insurance premium. Have you or your husband completed any advanced degrees? That can get you a discount too with some companies. Has your credit score improved? That can drop your rate but some companies won't rescore you unless you ask. Are you eligible for any kind of perks you're not getting, especially as a long-term client? How about your alumni association? Mine works with Liberty Mutual and gets a lower rate. Do you drive less than the average person? Garage your car at night? Can't think of anything else to ask about? Mention that you're worried about your premium and want to consider your options before renewing and see if she can think of something.

    Lastly, it's obvious you are a GEICO fan, but lots of insurance companies specifically target households like yours: families with married parents and a teenage driver in school. And by specifically target, I mean, "price to attract." I would shop around...and not just through an online broker, but talk to people you know that are happy with their insurance company. Worst case, you waste a day of your life talking about incredibly boring stuff but know that you really have a great deal on your policy as it stands. Best case, you slash your premium and save yourself hundreds of dollars.

     

    ETA: I don't know for sure that GEICO does this (in fact in my state I think they don't) but re: the deductibles...it's going to be the collision deductible that is super expensive for the young driver, but sometimes you can raise that deductible and leave the comprehensive at a lower number. That reduces your exposure for something like theft or vandalism or if a cow meanders out in front of you and you can't avoid her, but lowers the highest cost premium some. I would probably go ahead and raise both, but since you seem moderately uncomfortable with a higher one, maybe you could ease yourself into it. 

    Reply Like 5
      • Stacy C
      • nursepower
      • 4 mths ago
      • Reported - view

      Voracious Reader WoW!!! Thank you for all that. I'm definitely going to play with some numbers in a few weeks when I don't have work. I don't work in the summer and will have some extra time. 

      Reply Like
  • I also bought an insurance umbrella.  That hopefully will fill in any gaps after car/home insurance pays out.  I have assets worth protecting and $50K medical doesn't go very far, especially if someone is badly hurt or wants to sue.  

    That reminds me, I need to call the insurance and see how much and when that policy is due.  Hello new YNAB category!

    Also, I guess I need to start saving for when I have new drivers.  Dear gods, why did I think having kids in quick succession was a good idea!  I could have 3 under 25s on my account for years!  Yeah, I'll need to emphasize getting a job.  

    Reply Like 1
      • bevocat
      • Sometimes, It Just Sucks to Be You
      • bevocat
      • 4 mths ago
      • Reported - view

      Umbrella policies will usually require that you increase your coverages in your auto policy too.

      Reply Like
      • nolesrule
      • YNAB4 Evangelist
      • nolesrule
      • 4 mths ago
      • Reported - view

      bevocat Yes, they generally require your home and auto to be at the maximum liability coverage available.

      Reply Like
      • Technicolor Cheetah
      • Not sure when I became a cheetah...but I'll run with it
      • technicolor_cheetah
      • 4 mths ago
      • 1
      • Reported - view

      bevocat  nolesrule

      Oh, I don't know if my auto/home are maxed out but I know I asked to increase my car coverages when I was in my 20s.  Although I had excellent insurance through my job, I knew that $50K (even then) won't even get you stabilized in the ER if you're badly hurt.  I'm also of the opinion that I've wasted more money on worse things so having minimum coverage because more costs $4 a month is just short-sighted.

      Reply Like 1
  • I know you love Geico but seriously you should shop around. I was just doing so today because my term is up for renewal next week. I was shocked as a single male 31 the only driver single car for state min liability, uninsured, collision and comp with $1000 deductible and roadside service most of my quotes were in the $100-$150 range. But progressive somehow was much lower only about $61 per month, even less if i prepay the full 6 month term which I did.

    That said I remember when I was 19 (and younger, I got my license at 16).  I had my own vehicle owned outright which I got state min liability only for around $50 per month after going though my parents insurance and participating in a teen driver program the insurance company had.  So IF you can swing it get your son a paid for car (dosent have to be much $500-$1000 works just fine for a first car).  My parents paid for mine with a credit card cash advance and made me make the payments.  On one stat inexpensive that shouldn't be too bad but some people dont exactly like the idea of carrying that kind of debt.  Then dont insure him as a driver on your vehicle list him only on his.  I was able to work part time to pay my car expenses while going to college, I know of those who worked full time while going so that something to consider. In this job market he should be able to find something easily enough.

    Also see if Geico or whoever's you get has a program to customize your rate. For example progressive has this device you plug into your car it monitors things like fast accelerations and hard stops to possible lower your rate if you are a good driver. Also ask yourself if you really need rental reimbursement? If a family member has

    Reply Like
      • Stacy C
      • nursepower
      • 4 mths ago
      • Reported - view

      Slate Blue Sander The Ford Escape he drives is paid for. We own it outright. 

      Reply Like
  • Thanks everyone! This is a lot of good information I will be sure to check out. 

    Reply Like 1
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