Car Insurance

[Chasey_Lane]

Because a lot of time it is harder to find replacement parts for older vehs, newer veh have more safety features, etc...

I heard that before a while back and it makes sense.

 

[Chasey_Lane]

Hey Lovin -- are these what the current minimums are? If so, that's EXTREMELY low.

"When it comes to Maryland car insurance, the state law for Maryland requires a minimum coverage of $20,000 for Bodily Injury Liability per injured person. It also requires up to a maximum of $40,000 per accident. The minimum state requirement for Property Damage Liability coverage is $10,000. This type of coverage is generally referred to as 20/40/10 coverage."

 

[lovinmaryland]

Hey Lovin -- are these what the current minimums are? If so, that's EXTREMELY low.

"When it comes to Maryland car insurance, the state law for Maryland requires a minimum coverage of $20,000 for Bodily Injury Liability per injured person. It also requires up to a maximum of $40,000 per accident. The minimum state requirement for Property Damage Liability coverage is $10,000. This type of coverage is generally referred to as 20/40/10 coverage."

No state minimum was just recently increased to 30/60/15... but still that is EXTREMELY low. We usually dont even quote those low limits unless someone specifically asks for the state minimum.

 

[Chasey_Lane]

No state minimum was just recently increased to 30/60/15... but still that is EXTREMELY low. We usually dont even quote those low limits unless someone specifically asks for the state minimum.

I agree -- very, very low. Do you have a lot of clients with just the state minimum? Is it a huge difference in premium to go from the state limit to say the max coverage?

 

[lovinmaryland]

I agree -- very, very low. Do you have a lot of clients with just the state minimum? Is it a huge difference in premium to go from the state limit to say the max coverage?

From 30/60/15 to max coverage 1M/1M/1M uh yeah theres a big difference When checking around for insurance you have to be very careful of what they quote your liability limits. You might be thinking WOW what a great deal Allstate is $50 a month cheaper than my SF policy...well that could very well be they quoted you with the state minimum when you currently have 100/300/100 limits. So its not really a good deal.

To give you an idea this is my personal premium:
100/300/100 $489 per 6 months
w/ the state minimum 30/60/15 $440 per 6 months

We normally dont quote those low of limits unless they specifically ask for that. Normally the standard quote if people dont know their limits is 50/100/50 but we like to see people at 100/300/100 especially if they own their own home.

 

[Chasey_Lane]

From 30/60/15 to max coverage 1M/1M/1M
To give you an idea this is my personal premium:
100/300/100 $489 per 6 months
w/ the state minimum 30/60/15 $440 per 6 months

We normally dont quote those low of limits unless they specifically ask for that. Normally the standard quote if people dont know their limits is 50/100/50 but we like to see people at 100/300/100 especially if they own their own home.

Oh wow... I didn't realize the maximum coverage amount was $1M. I thought I had pretty good coverage until knowing this tidbit of information.

If an individual is concerned about the monthly premium, the additional money per 6-month premium is worth the extra comfort (in the example you provided for your own coverage). It's only $8 more a month to get better, more realistic coverage.

 

[lovinmaryland]

Oh wow... I didn't realize the maximum coverage amount was $1M. I thought I had pretty good coverage until knowing this tidbit of information.

If an individual is concerned about the monthly premium, the additional money per 6-month premium is worth the extra comfort (in the example you provided for your own coverage). It's only $8 more a month to get better, more realistic coverage.

Check your email

Some people are on a tight budget, especially w/ the economy being how it is so if they have 2 or 3 cars thats roughly $30 extra dollars a month. So even though we would like them to have better coverage right now they cant. Hopefully when things turn around they can increase their coverage.

 

[bcp]

I heard that before a while back and it makes sense.

Its a bs response.
a new vehicle usually has to get parts from the factory because aftermarket are not being made yet.
older vehicles are required to have parts made by the factory for 10 years after the date of manufacture, plus within a couple years the aftermarkets are making them, and you have the junk yard option. (insurance company favorite)
So, a 6 year old vehicle has a greater option of obtaining parts.
but at the same time that 6 year old vehicle is much less of a cost to the insurance company due to depreciation.

and, if you ask the insurance company why the new vehicles are so expensive to insure, they will claim that due to crush zones, the damage is greater and more to repair.

the answer changes depending on the question.

 

[dave1959]

Its a bs response.
a new vehicle usually has to get parts from the factory because aftermarket are not being made yet.
older vehicles are required to have parts made by the factory for 10 years after the date of manufacture, plus within a couple years the aftermarkets are making them, and you have the junk yard option. (insurance company favorite)
So, a 6 year old vehicle has a greater option of obtaining parts.
but at the same time that 6 year old vehicle is much less of a cost to the insurance company due to depreciation.

and, if you ask the insurance company why the new vehicles are so expensive to insure, they will claim that due to crush zones, the damage is greater and more to repair.

the answer changes depending on the question.

Hate to burst your bubble but that is completely untrue...The only OEM requirements for availablity are emmisions and safety items must be made through the longest factory warranty period. After that "if it dont sell, we aint makin it"
Its up to whom ever is paying the bill what kind of parts it gets, EI: aftermarket/factory.
And most insurance companys will use aftermarket whenever they can no matter what year.

 

[dave1959]

Its a bs response.
a new vehicle usually has to get parts from the factory because aftermarket are not being made yet.
older vehicles are required to have parts made by the factory for 10 years after the date of manufacture, plus within a couple years the aftermarkets are making them, and you have the junk yard option. (insurance company favorite)
So, a 6 year old vehicle has a greater option of obtaining parts.
but at the same time that 6 year old vehicle is much less of a cost to the insurance company due to depreciation.

and, if you ask the insurance company why the new vehicles are so expensive to insure, they will claim that due to crush zones, the damage is greater and more to repair. the answer changes depending on the question.

100% TRUE... Its also why cars total so easily now days..