Should I carry full coverage insurance on a car valued at $2,500?
First off, there is no such thing as “full coverage” insurance.There is Liability coverage, which protects other people from your negligence. This is the most important coverage to get.There is Med Pay coverage, which provides a limited amount of money for medical expenses for you and the occupants of your car regardless of liability (or PIP coverage in No-Fault states, which provide medical and wage loss for you and your passengers).There is Uninsured Motorist/Underinsured Motorist coverage that stands in place of the at-fault driver’s insurance if he is uninsured or under insured. This is for you and your passengers and is very important.There is Towing and Road Service coverage.And, finally there is physical damage coverage for your vehicle: Collision and Comprehensive coverage, which carry deductible amounts.If your car is only worth $2500, do not buy Collision, Comprehensive or Tow & Road Service coverages. Join AAA or another motor club for towing and road service. The annual membership is cheaper than the effect on your policy if you were to use that coverage on your auto policy: your premiums would go up.Do buy Liability, MedPay/PIP, UM/UIM coverages.Use the money you saved by not buying the other coverages to increase your limits on Liability, MedPay/PIP, and UM/UIM coverages. Statutory minimum limits are not enough!
Will full coverage insurance cover my truck with a broken frame?
I live in montana and I ran my truck into a pole on an icy road. The damage wasn't on the body but the tire hit the pole and bent or broken the A-frame. What can I do? Does anyone know if they'll cover the cost on fixing the truck or send me a check for a new car?
Should I keep full coverage insurance on an 11 year old truck?
no , not everything . the premiums cost more than the truck is worth.
If I financed a car through a dealer and they require full coverage, will GEICO notify them if I change the policy to just liability?
Oh yeah, big time.When I bought a car this fall, my insurance agent had a new staff member who proved to be… problematic. Couldn’t follow the three-ring binder, tended to throw stuff away he didn’t know what to do with. He didn’t last long, but he caused me six months of severe pain.I called and notified them of the new car a couple of days after I got it, got it added to my policy billing, set up coverage that aligned with my other coverage, etc.Or so I thought. Little did I know that once I got my binder and temporary insurance card, nothing further happened.A couple of months later, I get a letter from my lender saying that I needed to provide them with proof of insurance. I faxed over a copy of the binder and temp card, and gave them the number of my agent, and didn’t think further about it.About a month after that, I get a letter explaining that having failed to provide proof of coverage, they provided me with coverage themselves, at the “nominal” rate of $3800 per year - and they added it to my loan balance, and adjusted my payments accordingly.Coverage from my regular company was only about $780 a year.Unwinding it all - which eventually happened - took a lot of phone calls, a modest amount of yelling but eventually I got the extra coverage backed out, and my coverage with my actual insurance company back-dated to the original date that I’d called for coverage.This was all an accident, nothing was my fault, I wasn’t a bad actor. It still caused a huge amount of grief and consumed a large amount of time.Willfully canceling the mandated insurance which you acknowledged that you were required to provide by the terms of the loan agreement?Yeah… don’t do that. It will cost you much, much more than you’re “saving” by doing so, and could lead to repossession of the car since you willfully violated the agreement
What happens if I switch from full coverage insurance to liability on a older car that I'm still paying for? I live in Texas if that matters.
If your lender catches you they will purchase wildly overpriced single interest insurance. This will raise your payoff by thousands of dollars and only protect them in the event something happens to your car.If you are financed via owner financing they will repossess your car and require you to pay it off in full to get it back.Or, nothing. It depends on how on top of their game they are. When you signed a contract you agreed to provide full coverage while you owed money. You're not breaking any laws but you are in breech of contract. If they catch you they will ruin your afternoon for sure.
Will my car insurance cover damages to my car since my wheel fell off?
OK, this is a fun question - fun, in that the answer is NOT obvious to me, so I pulled out my handy dandy book of insurance forms. (Disclaimer) I'm reading a standard ISO auto form - your policy might NOT be written on this form. On the one hand, collision is defined as impact with another vehicle or object. The wheel itself, didn't impact anything. The body impacted the road, I'm assuming, as did the axle, etc. Under exclusions, it includes mechanical failure, but words it as "damage due to and confined to". On the other hand, when you hit a pothole, that's impacting the road, and it's covered under collision. Also, the damage wasn't confined to the mechanical failure, but included damage to the body and underside, when the car hit the ground. So, I'm going to say, in my opinion it would be covered, subject to your collision deductible - and would be surchargable. I'm also going to say, any damage or defect to the nuts that kept the wheel on is NOT going to be covered. And they'll depreciate the disc for milage. Now, PLEASE send me an email, and let me know if I"m right or wrong about this, and what the adjuster said. You might have a weird policy form, too . . . but I"m curious. Thanks! **ps, homeowners NEVER covers damage to your car. Ever.**
Is it worth it to buy the extra insurance for a UHaul rental truck?
I know of 4 insurance companies that do not cover U-haul. American Family, Geico, Liberty Mutual, Allstate. You need to check with your agent first. Make sure you tell them if you are going out of state. I had a customer who was told she was covered, then stopped in after she got the truck and told them she was going out of state, and they said she was not covered. I had another customer who did not take the insurance, and was backing into the drive of his destination, and hit a large rock damaging the truck, it cost him almost $300. Even if someone hit you, you are responsible for the truck. But on the other hand, it is an option. I have heard of several dealer who add the insurance without the customers approval. So I am glad to see you asking questions. I had an insurance agent rent from me, and when I asked him about the insurance he said yes so fast it shocked me. He stated that if something did happen it would not ding his auto insurance. U-hauls SafeMove insurance covers damage to the truck, the cargo in the truck, and also has medical/life coverage. The SuperSafeMove also includes $1 million in liability coverage. I wish you luck in your move and safe driving.