Hi everyone. I'm shopping around for auto insurance (hoping to reduce my premiums) and I am not sure about some of options of coverage I am choosing. I'm basically going to compare quotes on the internet and hopefully find the best deal. I'll probably talk to my insurance agent to see how much coverage I really need, but I wanted to get everyone else's opinion. How much of each of the items below should I choose to cover? I'm only insuring myself at this point:

Bodily Injury Liability
Property Damage Liability
Underinsured Motorists
Underinsured Motorists Property Damage
Comprehensive Deductible
Collision Deductible

 

No offence Nathan, but that's a little deep for me mate, I just drive the thing.

 

You need to disclose what you are covering.
A leased car has a much higher minimum level than a purchased auto. If you bought it, you have more choices on the level of coverage. If leased, forget it-you are bound by the leaseholder's requirements (at least in Calif).

2004 DG 5AT
Aero Sport Premium

 

Plus, if you go with the state minimums and get into a big accident that's your fault, you could be left with the bill for the difference. 15k liability isn't going to cover someone's totalled Mercedes.

For the deductibles, decide what you can afford to pay if an accident does happen. $500 dedictibles make for lower premiums, but it's a bigger ouch to deal with when bad things do happen. You may want to squirrel away enough money in a savings account to cover your deductible, and not touch it for any other reason. Definately get the uninsured/underinsured policy. I've been rear-ended by an uninsured motorist. My policy waives the deductible in such cases -- plus consider that the other guy may only have the state-mandated 15k policy, and if he totals your 35k car....

You also want to make sure your policy covers a rental car. It sucks to be without transportation while your car is in the body shop. Even a rental Corolla or Grand Am is better than nothing.

And as for leases and bank loans.. your bank may have minimum requirements they want on your policy. Mine requires a deductible of $500 or less and the 100k/300k liability.

The internet is a good place to start. It also doesn't hurt to open the yellow pages and call insurance agencies in your town. However, I'd favor the company with better customer/claims service over the company with the cheapest price. If you have any family/friends that have been in accidents, ask them which insurance company handled the claim and how well they handled it.

 

If you are driving a car as nice as a G, you should have an Umbrella liability policy. Most Umbrella policies require that you have at least $300,000 of liability coverage on your auto policy. The umbrella supplements this amount, usuallly with one or more million dollars of liability coverage. You'd be surprised how inexpensive this additional coverage can be. If you have an umbrella policy already, check what minimum underlying liability coverage is required. If you don't have an umbrella, look into it. While an umbralla policy also supplements your homeowner's liability coverage, a large liability lawsuit is MUCH more likely on the auto side.

A sad fact of life is that if you "injure" someone with your car, that fact that you drive an Infiniti can make you much more a of a target for a frivilous lawsuit than if you drive a Chevrolet.

04 G35s 6MT BS Aero Kit/Nav/Prem
Warning: Objects in Mirror Are Losing!

 

Nathan, I am an insurance agent in N.C. You are wise to ask about appropriate limits BEFORE you are involved in an accident. Hope you never are but I would recommend:

Bodily injury liability limits of at least $100,000 per person, $300,000 per accident.

Property Damage liability limits of at least $100,000

UM/UIM limits equal to your primary liability limits

Comp and Collision are much more negotiable. As mentioned by other users, much depends on your lender or leasing company. Most will allow no more than $1,000 deductible and probably only $500. There are substantial premium savings for higher deductibles in most states but be sure to check with your lender.

An umbrella liability policy was also mentioned and this too is excellent advice. Premium for a $1MM policy in N.C. would be around $125/year and would let you sleep really good at night.

Rental car coverage is also nice if you need it and is usually pretty cheap, maybe $20/year in N.C. One day rental will cost more than that so use your judgement.

I don't know if Medical Payment coverage is available in your state. This coverage pays up to a set amount (usually between $1000 & $5000) for necessary medical payments to a passenger of your vehicle injured by an "at fault" accident by you. Also pretty cheap coverage.

There are other issues as well and I would suggest you talk to a local insurance agent who will be familiar with your state's laws and insurance regulations. The internet is great but some things need a more personal touch, especially when your financial future may be at stake.

Hope this helps a little...

Rickebob