I am shopping around for basic auto insurance. I have an old car that is fully paid for and is probably worth 6500 max. I barely drive the car around as I live 3 miles from work and take the bus. I have been told to just get liability coverage with uninsured or underinsured motorist bodily injury coverage. Your thoughts and suggestions would be much appreciated.
Don't get Allied Insurance. A driver hit me, with him being 100% at fault. We had witnesses, got his license, etc. It took 3 months to get my bumper fixed because they refused to pay me until they got the other driver to pay first!
$6500 is a lot of value to lose in the event you get into an accident that is your fault (i.e. if you only have liability and UMPD, you will not be covered). I would recommend you get full coverage unless losing $6500 is no big deal. I always recommend first deciding what is the most out of pocket expense you can afford in the event you have an at fault or comprehensive claim; this will help you determine what deductible you can select ($100/$250/$500/$1000). Once that is determined, just shop around and compare potential premiums accordingly. I also recommend checking out a potential insurer's credit and customer service ratings to help determine whether the carrier you select is a good company.
There has to be more to this, because that doesn't make sense. A insurance company can't withhold payment under a valid liability policy by insisting their insured pay for your damage (assuming the insurance company accepted liability).
No, MY insurance company wouldn't pay me. The other guy didn't have insurance, but I had uninsured motorist coverage. Allied wouldn't pay me first and then pursue the other guy.
As an attorney that has drafted some of the insurance policies used by the big 3 auto companies all I can tell you is that you get what you pay for. You need to not only consider liability, but the amount of coverage. Do you have assets that a plaintiff would go after if you are in an accident with a limited policy? Honestly, I personally would get full coverage with a minimum $50,000 amount... that should come with an uninsured and underinsured policy. That way if someone smacks you, you will be at a minimum somewhat protected.
Something in my wheelhouse. If you hit someone, how much can they sue you for? If you're a broke student, by full coverage but stick to the minimums. That will be in Texas: 30/60/25 Liability - If the accident is your fault, you owe the other party, your insurance company will pay up to 30K per person per accident for bodily injury, 60K total per accident bodily injury, and 25K property damage. If you have assets to lose then bump it up to 50/100/50 or 50/100/100 or 100/300/300...many options here. UM/UIM - For uninsured motorist or under-insured motorist protection, you can only buy maximum what your Liability buys are. So if you buy 30/60/25 for liability, then it'll be 30/60/25 for UM/UIM at most. Whatever you buy at Liability, your last number here for UM/UIM does not need to be higher than 25. That's because your car is only $6500. Collision - This is coverage for when it's your fault in the accident, so they reimburse you for damage to your car. Deductible options are 250, 500, 1000, 1250...the higher the deductible, the lower the cost of this portion. Comprehensive - You might not have to buy this. This covers flooding, theft, fire, hitting animals...basically, is your car nice and do you live in a crime area. If you answer no, then here is a spot to be stingy on if you cannot afford it. Buy it if you can afford it. Towing and Labor - good deal, usually less than $1/month add on Rental Coverage - can save a little here too if you don't need a car if you wreck yours and it's your fault. If you go super cheap, but full coverage, you're looking at anywhere from $500 to $900 for 6 months depending on your zip code, age bracket, home ownership, and driving record...and your profession can get you a small discount. Email me through the board if you want a quote and want info on anything else. I'd rather spend my time working on my apartment complex and shopping center policies, so don't take this as a solicitation or that I'm hurting for money. I just take pride in my business and that we service and inform our customers way more than the typical agency, and willing to help a fellow clutchfan out.
Doesn't matter if it was your own insurance company. If the other driver was at fault and it was verified he had no coverage, and you had a valid UMPD policy, then the claim should have been paid as soon as the damage to your vehicle was determined. They then could have gone after the at fault party through what is called "subrogation", which would not have involved you, to recover what they paid you. Sounds like they worked the process backwards here. You may want to file a complaint with the Texas DOI on that. An insurance company can't withhold payment on a legitimate claim, under a legitimate policy in the way you have described.
The difference in costs of Liability and Full coverage isn't that much. I'd definitely get full coverage. Also, I've had poor luck dealing with Substandard insurance carriers like Progressive, so I'd stick to the bigger carriers. I've used State Farm as long as I've had insurance, and I went through a tough period after I moved up to DFW where I had 4 wrecks in 4yrs. None were my fault, and NONE of the other drivers had insurance. My agent called me up and said I was about to receive a notice that they were dropping my insurance, but I should just ignore it. He made sure my insurance wasn't cancelled, and that my premiums didn't go up because none of the accidents were my fault. Find a good agent who'll give you his personal attention. For you folks in Houston, Joe Stephens is an insurance agent on the east side. Give him a call, he's a nice guy, and even had a brief 4yr career in the NBA that landed him on the Rockets for 2 season. Didn't get much playing time, but just the fact that he made it that far is impressive.
I'm currently with State Farm. I have not received a ticket or been in an accident for the 7+ years I have been with them but for the third straight term, my rates are going up. My policy expires December 9 so I am getting out of this and going with some other company. Any suggestions?
I suggest State Farm. We pay less than $1200/year for full blown coverage on a 2011 Volvo C70 and a 2009 Ford Edge. Do they tell you why your rate keeps rising?
I think they followed the right process and that is what other insurance companies do when subrogation is involved. I am going through this right now with Geico. I got hit from the rear and of course the other driver is at fault. He was in a company vehicle with commercial insurance. I needed my car fixed right away so I went through Geico and having them go after the other guy. I had to pay the deductible. Geico will pay me back if they can recover the money from the other guy/his insurance or company but they wont pay me if they cant get the money. Thats how payment recovery process works.
I own a 2002 Hyundai Elantra and I pay $35 bucks a month for minimum coverage from Geico. I was with Progressive before that, they had very reasonable rates.
Call State Farm. Thank them for the coverage. Tell them you are leaving due to costs. Tell them your Progressive (or whomever) quote and see if they will match.
You really should have full coverage. I pay GEICO $75 a month for full coverage on 2000 Chevy p/u and 2004 Tahoe. Both have been paid for for years. Just gives me a feeling of security. C'mon... It's only $75 a month.
I know that (I am a licensed P&C claims adjuster in TX). The way he worded his situation, was that his carrier was refusing to pay a legitimate UMPD claim without first recovering from the at fault party (the other driver) first. This is working the sub process backwards, which I have never heard of. Insurers have no rights to recover (sub) without first paying a claim. Therefore, saying they won't pay until the other party pays them back up front makes no sense. Legally, they can't do this. If Billy Bob was rear ended, and it was proven that the other party a) Was determined to be legally at fault and b) Did not have a valid liability policy and c) Billy Bob had a good UMPD policy, then his carrier should have paid the UMPD claim fairly quickly and then sought restitution from the at fault party through their subrogation rights.
