Well, from the other side of the coin..... It's generally referred to as the Collateral Source Rule, which in Maryland, the insurance lobby fights to abolish each and every year.

The theory behind it is that I pay a separate premium for my PIP coverage out of my hard earned income. Therefore, why should the defendant get the benefit of coverages like PIP that I pay a separate premium dollar for. The insurance companies recieve a separate premium for each coverage so it should really should not matter to them.

In some states, (like Delaware) you can even stack liability policies. That means if I own a MINI with a $100,000 UM coverage and a Ford with a 50,000 UM Coverage, and get into an accident that is the fault of an uninsured driver, I have a total of $150,000 coverage available for my injuries.

And please don't worry about the insurance companies. All of this is taken into account when the premiums are set each year.

 

Right... in MD you can't stack coverages but if you have two vehicles insured, we will select the vehicle with the most beneficial coverage to you, even if it was not the one involved in the accident.

This is what makes insurance so complicated... all the different rules for all the different jurisdictions. Especially in an area like ours where the states are small and we have to work multiple jurisdictions.

 

Just an fyi - I went with State Farm (as I use them for renters insurance) but I got a $0 comprehensive deductible. I would check and get a quote on that, as the price difference between that and a $100 deductible is almost nothing. And if you get a chip in your windshield you don't have to pay a dime.

 

Agreed.

Here we have DC, Maryland, Virginia, Delaware, Pennsylvania and West Virginia all in a fairly compact area. And each one of them is unique when it comes to their respective insurance laws.

 

Hmmm good thread!

I know you are mostly talking about brand new Mini Cooper coverage which has been great advise for me but I've been wondering about my mom's coverage. She drives a 98 honda paid for for a while now. Of course she has liablility and UM/UIM but is this really the best option for her? She does have a small bit of assets to protect. Any suggestions. I'm not familiar with the umbrella coverage.

Oh I was curious. For a few years I was driving my mom's car and we were both on the insurance since I drove it more then she did while the car is in her name. I wondered that since we live a the same address but different condo units would that matter? I mean technically we don't live together. Could this cause a problem if we insured my Mini and her Civic together as I still drive her car sometimes but she does not drive my Mini.

Thanks for any advise. Car insurance can be confusing but this thread has been very informative.

 

Again, a lot of the answers to your questions depend on the State in which you live. If your mom owns her condo and is single, an umbrella would be a good idea if she can afford it. The cost for a $1,000.000 umbrella can vary, but typically costs about $150 a year in MD over your other insurance. It's called an "umbrella" because it usually supplements your liability coverages on both your homeowners and your auto, and can also provide some independent coverage for things like defamation or other more esoteric torts. (All of this depends on the language of the policy so read it carefully) Insurance companies usually require that you carry minimum coverages on these other policies; usually $100,000.

Since you techincally live at separate addresses, I don't think you can be considered as a "household", but check with your agent. You each can be "named insureds" on either policy, but I, personally, don't see an advantage to this. (Especially if you are a young male - that would cause your mom's insurance to increase)

You can drive your mom's car and she can drive yours and be covered on each other's policy if there is an accident, as long as neither of you have been named as an "excluded driver" on either policy. This would usually happen only after one of you was responsible for an "at fault" claim under that policy. In Maryland, coverage usually follows the car, not the driver. AGAIN, ALL OF THIS DEPENDS ON YOUR STATE LAWS.

 

On the coverage question: If it were me, I would not carry Collision coverage on a 10-year old Honda. I would carry Comp though. It's fairly cheap for the benefits you gain. Collision is an expensive coverage and I would prefer to assume the risk than to pass that risk to the insurance company, given how much that would cost.

As far as the liability coverage, I give the same advice, regardless of the car you drive. You're not insuring the car, you are protecting yourself and your assets. So, if you have no home or other liquid assets, 100/300/100 is fine coverage. If you have something the courts could take from you in a suit, I recommend either higher limits, or an Umbrella policy. Talk to your agent about what is best for you and/or your mom.

Now, on the rated driver question. That varies among insurance companies but if I (remember, I'm with State Farm) was underwriting your, and your mother's auto policies, here's how I would rate them:

You do not have the same mailing address. So, you don't live together. I'd rate your mother's car with her as the only driver and your car with you as the only driver. There are two exceptions:

a) If you or your mother tell me you drive the other's vehicle on a somewhat regular basis.

Or

b) If either one of you is listed on the other's registration.

In those two cases, both of you are obviously risk exposures and must be listed as a HH driver and be rated on the policy.

 

CR, I agree on your last point. I was assuming that they are not on each other's registration.

Interesting issue on the collision coverage. For years I had the same opinion as you regarding collision coverage on an older car. But in the last few years I have run into so many problems with getting liability to properly value the older car in the event of a loss. Sometimes, I get both sides to do it and take the best offer. I have found that it can be a substantial difference in some cases. (The CCC valuation report has now become so powerful, but can be so skewed sometimes, its nice to have a second opinion from your own carrier, too)

Also, if you do not have collision coverage, you cannot get rental coverage under your own policy, so if you have an accident that is your fault, (or contested liability with the other driver) and you do not have another vehicle, you could be left without any transportation at all until the property damage issue is resolved and you get a check. Again, this depends on the cost of the collision coverage for the old car and your personal situation. One way to lower the cost of the collision but still be able to afford it, would be to choose a very high deductable. As far as I am aware, the collision deductible does not affect the rental coverage, right? Just some thoughts.

 

Right, your Collision deductible has no bearing on your Rental Reimbursement coverage.

Your points are more food for thought when you decide if you want to carry Collision coverage on an older vehicle. It's a tough decision and also has to be made with your own financial situation in mind.

I do run across some policyholders who dropped their Collision coverage, have been involved in an at-fault accident, and then tell me they wonder how they'll be able to replace their car. Sad, but true.

 

oh, i guess i already am sucker to take the gap from my dealer too. but it is easy for my wife and me to have dealer put $ together in our loan for gap, extended warranty, extended maintenance & tires & rims coverage so we just pay the bill up to 5 years with fixed low rate loan. then if we paid off the loan early than 5 years then i can refund some little $ back from gap.

another reason, i like the dealer how they handle it from there if something happen. for example, my brand new runflat tire just get flat by the nail from hazard road. i just drove it to the service place then they provided me a ride in the shuttle (bmw suv with nice leather seat and a/c) to my work. they did order new tire and billed me by mistake for $275 but they just took good care of making a call for me and put zero balance to bill me with my hazard protect program. i feel like they treat bmw and mini customers equally in first class! i guess i never feel rich since i am poor.

btw, i just added extra $13.36 more every six months on my mini cooper for $100 deductible for comprehensive separately but keep same on my wife's old corolla for $500 deductible (not worth to add extra $10.50 more on cramp old toyota within 160,000 mileages and lot scratchs and dings).

thank for advice again.

 

My mom does not own her condo or any property but has some money in the bank.
I asked my agent and he said it was fine but for some reason I don't feel comfortable with his answer.
I am not a young male Middle aged female.
We are not on each others registration. I drive her car (usually now since I have the new Mini only when the weather is bad and dont' want to risk driving the Mini though high water), she does not drive mine at all.

I am in Texas.
If my mom 'lost' her car in an accident at this point it wouldn't matter a whole lot. She isn't really driving much these days due to her health. I drive her around a lot so she just uses her car to drive up the road to the grocery store or to the park during the day. She won't drive at night.
So we don't need rental coverage really unless both of us are without a car and I don't see that happening.

I think I might just take my car off of our insurance and cover it myself. We were getting a multi car discount but I don't want to chance any problems if there is any kind of claim.
Thanks so much for everyones recommendations. I've been getting a lot of quotes and so far Geico has been the lowest. I do want my insurance to repair the Mini with Mini/BMW parts not some cheap aftermarket parts.

 

Oh... didn't realize you were saying you're still both listed in the same household and getting the multi-car discount. You shoudn't be, as you don't qualify for that discount, living in different condos.

The insurance company could choose to attempt to cancel you for that for "misrepresentation", but not likely they would try and your state's insurance department might not allow it if they did.

Just to be safe... take care of it and make sure your ins company understand you have separate mailing adresses and don't reside together any more.

 

Unless both of your names are on each other's car titles, it sounds like both of you should be on your own policies. My biggest concern is if one of you had an accident, but both of your names are on the titles, both of you are gonna get sued. The insurer would defend both of you, but it would be an unnecessary pain for one of you. But again, as they say, "TEXAS, it's like a whole 'nuther country!" so you need to get local advice on this in Texas.

As for a company agreeing to use only new, original manufacturer parts, I don't know of any carrier that will promise this. And this issue has been a big bone of contention for several years now. (CR&PW&JB, wasn't there a big case a few years ago involving State Farm and their right to use non-OEM/aftermarket parts? A Florida or California case maybe? I seem to remember it, but don't remember the outcome.) Again, your state insurance commission may have rules on this that the carriers have to follow. But here in Maryland, unless you've got a very new car with very little mileage on it, your gonna have to fight hard for the OEM parts.

CR&PW&JB, can we get you an easier name? I gotta use all eleven fingers to type that. How 'bout "Festus"? Try it on. Drive it around. See how it feels!

 

Just call me CR for short, if you want. Festus.... ummmmmm... let me think about that one. Ummmm... NO.

Yeah, State Farm was involved in litigation., but it was surrounding the use of recycled/reconditioned parts, actually. And they (us) won that suit.

It would not only violate the principal of indemnity to put new parts on a car that is not new (we don't owe it to customers to put them in a condition better than they were prior to the loss), it would also increase everyone's premiums to a point of being rather painful.

Now... insurance companies can NOT use a part that is OLDER or in WORSE condition than the part they are replacing off your vehicle.

If there was another suit involving the use of aftermarket (non-OEM) parts, I'm not aware of that. Maybe another insurance company was involved in that one, or maybe it was us and before I started in the business.

Regarding that, let me just say that many parts on cars are not made by the manufacturer. Or, the OEM parts are made in the same factory as the aftermarket part and just stamped with a different name. Very common for a lot of parts (radiators and condensers are almost exclusively made by one or two companies for all makes and models of cars, for example).

 

Just be sure you know what you're getting yourself into. Just because a company has the lowest premium shouldn't determine if you go with them or not (although nowadays that seems to be everyone's deciding factor).

Make sure you're going to get the service you want and deserve, although if service isn't what you're looking for, then a low premium just might be right for you! (oh, not that a low premium always equals crappy service..of course.)

 

I told the agent that we do not reside in the same unit just at the same physical address and he said it was fine but like I said, I don't buy it.

Thanks everyone! I will look into getting my own policy and I won't just go with the lowest price.

 

From what you have said so far, I'm really not too impressed with your present agent. I, too, have run across agents who do not seem to understand the product they are selling. Maybe too busy or just too commission minded.

Although I have never went this far myself, I might recommend that you "interview" several agents for the insurance companies you are interested in and go with the agent who seems to be the most knowlegeable about his or her product, and interested in your needs.

Agents are the front line in building a good insurance plan to protect you, whether it be with a homeowners, auto, and/or personal liability (umbrella) policy. Your protection is only as good as the guy or gal who put it together for you. I realize it might take some time and effort on your part, but you would have some peace of mind after.

 

And for anyone here who doesn't own your home, do not forget to look at a Renter's policy. Your landlord's insurance will not cover the furnishings of your apartment, condo or rental home in the event of a loss. A Renter's policy will, and can also provide a lot of the other benefits that a Homeowner's policy does. It's worth a look.