by Guest » Fri Sep 23, 2011 03:55 am
Hi
If I buy a car that has hail damage but has not been repaired, what insurance problems can I face? Please it's urgent. I just have a day's time before I take my decision.
Lori, InsExpert...anyone :)
If I buy a car that has hail damage but has not been repaired, what insurance problems can I face? Please it's urgent. I just have a day's time before I take my decision.
Lori, InsExpert...anyone :)
Posted: Fri Sep 23, 2011 04:39 am Post Subject:
Hail damage is almost always cosmetic in nature but can be so extensive that the cost of repairing the vehicle may even cross the value of the vehicle itself.
Check with a good mechanic first. Get a clear idea about the functionality of the mechanism of the car before buying it, make sure the damage is only superficial.
While you can get an insurance for the car, make sure you list all the prior damages with the insurer, if possible with pictures along with the date when you buy it. This is to clarify the present condition of the car.
This may be vital because the insurer won't cover the existing damages but if any new conditions arise you may make a claim for it, without being turned down for prior damages.
Posted: Sun Sep 25, 2011 06:03 am Post Subject:
thanks monawayne for your advice. Looks like I'm going to buy that car after all. The damage is not so much and the insurance company of the previous owner has the reports. However, I know I may not be able to claim for those damages but I'll make sure I report all damage to the insurance company I buy from. btw, how much liability should I be looking for when I buy insurance for a corolla 2004 model?
Posted: Tue Sep 27, 2011 04:49 am Post Subject:
Your liability cost depends on your state’s minimum requirements, and is basically the same for all vehicles.
You should always buy well above your state’s minimum requirements to safeguard yourself from liability costs if you get involved in an accident.
The part of auto insurance that varies based on car models is the Comprehensive & Collision coverage.
Talk to your insurance agent to get the details about it.
Posted: Tue Sep 27, 2011 06:42 pm Post Subject:
how much liability should I be looking for when I buy insurance for a corolla 2004 model?
The question was about how much liability coverage to carry. Mona's answer is incomplete and she is somewhat mistaken in her advice.
Liability rates are affected by the type of vehicle in addition to the other rating factors (driving record, miles driven/year, location -- CA is more expensive than IA). A Hummer will do more damage to persons and property than a Corolla, so a Hummer would force liability premiums higher for its owner, compared to your Corolla, assuming all other ratings factors were similar. And you have to remember there are two liability coverages: Bodily Injury (BI) and Property Damage (PD).
When it comes to how much liability coverage to carry, the question you really need to ask is, "How much financial risk am I willing to expose myself and my family to if I kill or seriously injure someone as the result of driving my car?"
State minimums might be as low as just $5,000 to $10,000 for PD and $10,000 for BI. With that amount of liability coverage, all amounts in excess of $10,000 in bodily injury you do to someone else would come out of your pocket. If you carry $100,000 BI, only the amount in excess of $100,000 would be your responsibility. The difference in cost between $10,000 coverage and $100,000 is maybe $100-$200 per year in added premium -- pennies per day. You could increase to $250,000 for another $50-$75. Still pennies per day.
When it comes to property damage liability, pay attention to the cost of new cars in your area. If the average new car costs $30,000 and your PD coverage is $5.000, your Corolla still has the ability to TOTAL almost any other vehicle, and you would be personally responsible for any amount of damage beyond $5.000. Most people are best advised to carry $50,000 in PD liability. If you knock down a traffic signal, that alone can cost $30,000+ to replace. The difference between $5,000 and $50,000 PD? Maybe $50 per year. Pennies per day.
Beyond that, you can carry an "umbrella" liability policy with an additional $1,000,000 of coverage or more for just a couple of hundred dollars per year. Still pennies per day.
I always recommend higher limits to persons who own homes, businesses, or have material wealth. Those things are at risk beyond your insurance coverage. It's a foolish tradeoff to carry minimum coverage just to save a few dollars. A few hundred extra premium dollars per year can save your home, your bank account, your business, and make your sleep more peaceful.
Posted: Fri Sep 30, 2011 05:38 pm Post Subject:
Thanks MaxHerr. Your post was really informative.
I am in Dallas Tx, right now and my insurance has quoted 30, 000 PI for indiviual and 60, 000 for if there is someone else in the car with me. Is this a good enough amount? or should I get a 100/300 coverage for PI and PD?
Posted: Fri Sep 30, 2011 10:34 pm Post Subject:
Your choice of limits is up to you. If you are a homeowner, I would advise 100/300 or higher. Even if you are not a homeowner, when you look at the cost, the difference between 30/60 and 100/300 should be pennies per day over the course of a year.
The lower your liability limits the greater the risk to your personal savings, non-retirement investments, real estate, and most other assets.
Posted: Sat Oct 01, 2011 12:39 am Post Subject:
Liability rates are affected by the type of vehicle in addition to the other rating factors
A Hummer will do more damage to persons and property than a Corolla, so a Hummer would force liability premiums higher for its owner, compared to your Corolla,
Actually I'd say those "other factors" are much more a factor then the vehicle being driven. Liability insurance is mainly rated on the driver... not the vehicle. When talking about large numbers, if a person is more likely to be in an accident is a much greater exposure then the amount of damage they cause once in that accident. When dealing with those large numbers (thousands of claims), most claims are going to have the same amount of property damage (indeed, many insurance companies have standard reserves for property damage claims and no longer set the reserves based on the actually loss information). However, the likelihood of a 16 or 17 year old driver being in accident is almost a given.
When choosing liability limits you need to consider your own exposure... if you cause a loss, how high of limits do you need to insulate yourself from exposure. If you are a student living in an apartment with a 15 year car in assets, then you may want to consider low limits. If you have a house, boat or some other assets then you may want to have higher limits. of course, cost is also a concern. Even if you have nothing, it may cost you only a few dollars to double your limits.
Posted: Mon Oct 03, 2011 06:17 pm Post Subject:
Thanks MaxHerr and tcope :)
I don't own any home here in Texas. I've already raised my liability limits to 100/300. I have a health ins that covers me well enough. So would I require a PIP coverage? My ins comp says I may choose not to include it in my policy if I have health insurance. Even I have read somewhere that health ins would take care if I get involved in an accident and hurt myself and the Liability takes care of the other car driver and the car. So, I can drop PIP right? The laws of driving in Texas are quite strict I can see and I am a very careful driver. Never had a ticket in my 4 years of driving in other states. Please let me know. Thanks again for the help :)
Posted: Tue Oct 04, 2011 05:40 pm Post Subject:
Although you may voluntarily waive PIP coverage in Texas, you may want to consider what it covers. Yes, you may have medical insurance to pay for your injuries, but it will not cover the other things PIP does:
PIP includes:
* Medical Expenses – These may include medical and surgical treatment; dental and optometric treatment; ambulance and nursing services; necessary medications, medical supplies, and prosthetic devices.
* Lost Wages – If you or your passengers are unable to work due to accident-related injuries, PIP helps you recover your lost wages.
* Substitute Services – Should you or your regular passengers need help performing household or other tasks due to accident-related injuries, PIP also helps pay for such substitute services.
* Funeral Expenses – If a covered individual dies from accident-related injuries, PIP helps pay for related funeral expense.
Do you have the resources to provide these things to others that PIP would?
Posted: Mon Oct 10, 2011 07:31 pm Post Subject:
umm...no we have not the resources yet. We did buy a policy without PIP coverage but I guess we should include it. Maybe, we'll make an inclusion keeping in terms with the rules of the insurance company. We didn't think about the lost wages factor. It'll be hard.
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