Insurance?

kannibul

I turned my policy to bare minimums...I'm paying $165/mo now, for 25/50/25/1K, plus uninsured/underinsured at 25/50. (Z and Civic at those amounts, truck at liability only)

While you can say that someone is personally liable for amounts over the covered amounts, how often is someone in a car accident where $25,000 didn't cover it? Cars are very safe these days, especially if you're an attentive driver.

Personally, I'm not going to worry about it. I'd rather pay less and pocket the different (like using it to pay off debts) than give it to the insurance company that'll deny claims and give me the run around anyway.

99.999% of the time, those coverage limits are money being tossed in another company's pocket. I'd rather keep it in mine, like I said, and toss it at some debts and get them gone.

Hi-TecDesigns

If I hit a new Z Touring with another Z Touring, totalling both (highway wrecks can easily get there), that's $80k in liability right there... suddenly that $25k seems a bit paltry to me. If it's a multi-car pile-up that you caused (it is an accident, so don't claim "I would never do that"), even $5k-$10k in damage per car would quickly add up.

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awesomez

25k is low but if you don't have 5k in property and accounts, it's not like someone can sue you for more.

Single driver does not pay for pile ups. They normally pay in the order the pile up happened with the last guy not paying anything.

Hi-TecDesigns

Woh, are you in for a big surprise! They'll garnish your wages from now until you die to pay off debt from a lawsuit. Any tax refunds you might be due are automatically gone. Lottery winnings are automatically forfeit up to the amount you owe. Don't think that just because you don't have readily available assets now means you're safe (unless you don't mind living the life of a pauper until you're dead).
The single driver pays for every item he hits, OR causes damage to by direct action. It won't take many hits to rack up a sizable bill. And what if you slide off of the side of a neighborhood road and take out the corner of a house (seen several stories like that in the paper or on national news... not often, but sh!t happens). Or more likely, what if you hit a $40k truck carrying a $50k cigarette boat on a trailer, popping the boat off of the trailer? You think the insurance company is going to say "You're only liable for the damage to the truck... you never hit the boat."?

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awesomez

I in fact am not in for a big surprise since I am insured with $1 million policy and have my own lawyer. You will be in a big surprise when you sue someone with no money for future money they will never have. You will get stuck with the attorney bill when they leave country for good. Any intelligent person wouldn't sue them in the first place, and any intelligent person would leave the country if the are sued and loose.

kannibul

Regarding sliding off the road and hitting someone's house

Homeowners insurance takes over the rest. Unlike auto insurance, homeowners insurance portects your own property from damage, not someone else's.

kannibul

You're forgetting depreciation. 40K Z Touring is worth $35K as soon as you drive it off the lot, if not quite a bit less.

Also, there's the point (depending on your state) that liability falls within the scope of who's at fault, and, your insurance pays for the other guy's property.

By purchasing insurance at a higher rate, you're basically betting against yourself and your ability to drive and avoid an accident. Most cars on the road are well under 25K considering their depreciated value, so, there ya go.

If it makes you sleep better at night having more insurance, by all means.