Ask MetaFilter questions tagged with insurance and carinsurance

I Wanna Be Protected!

fourcheesemac — Wed, 02 Sep 2009 09:52:15 -0800

Can one buy a personal auto liability policy for rental cars that replaces or supplements LDW or liability supplement coverage offered by the rental agency? I travel constantly, and rent cars 20+ times per year as a result. However, I live in New York City and do not own a car, and hence possess no personal auto policy. Prior to moving here, I owned cars and trucks for 15 years, and have an extensive and good driving record across multiple states. I am, of course, licensed to drive in New York.

My credit card (Visa) covers the collision damage liability for the rental car itself as primary insurance in this situation, so I typically decline the CDW. In any case, it wouldn't break me to pay cash to replace the economy or compact cars I usually rent. So to be clear, this is not a question about coverage for damage to the rental vehicle itself. As far as I know, credit cards do not offer liability coverage at all (and many people are misinformed about this, in my experience, including some rental agents).

In some states in which I rent, the rental agency claims not to carry any liability insurance (in Indiana, Alamo and National have told me they are exempt from state minimums and that, in essence, a renter is required to either possess an auto liability policy or buy their liability supplement). In other cases, even where there is some liability coverage (ie, for damage done to other people and property in a hypothetical accident in which I was at fault), it's pathetically low given the risks one takes by pulling out of the airport parking area. So I usually buy whatever additional liability coverage is offered by the agency (still not great -- usually a 100K-200K overall limit). Tends to run 12-15 bucks per rental day. Usually you have to persist in asking for the liability coverage alone, and not as part of a package with the CDW and veterinary coverage for the family pet and every other little ripoff option.

I would like to buy my own policy that would simply cover me in any rental car in the US to the tune of half a million to a million bucks. Does such a policy exist? I've heard about general personal liability policies, but that seems like overkill to me.

I am having a devil of a time searching for this on the net because any combination of keywords pulls up endless bitching about the CDW/LDW policies of the various rental agencies.

Even when I travel on business and supp. insurance is covered by my employer, I'd love to have a personal policy for increased protection. Like I said, it's pretty easy to imagine doing 100K worth of hurt backing into someone's outside wall, for crying out loud.

Seems like an obvious product for business travelers, no?

Can I / should I accept reimbursement for a car repair I didn't do?

Anonymous — Tue, 30 Jun 2009 07:40:56 -0800

Is it legal to accept $500 from a car insurance company, reimbursing me for a repair I'm not going to make? If it's legal, should I? Recently my car was very lightly rear-ended. Both I and the other driver are insured. There were no injuries and my car has no visible damage -- I took it to my mechanic, who I trust, who confirmed that there was no damage from the collision. The other driver's insurance company sent a photographer to take photos of my car to check its condition. The photographer reported a small nick in my bumper, and based on this, the other driver's insurance sent me a check for $500 for a new bumper. The nick is almost invisible (my wife can see it, I haven't managed to) and we have no interest in getting a new bumper. My wife thinks it might be OK to just cash the check, on the grounds that the eventual resale value of the car will be lower because it's been involved in an accident, however small. I'm concerned that it might actually be against the law to cash a check for replacing a bumper that I didn't actually replace. I see a few options:
A. Cash the check, pocket the money.
B. Cash the check, replace the undamaged bumper. (Seems like a waste of the world's resources, but maybe I should think of it as economic stimulus?)
C. Don't cash the check, keep it, and if I need to replace the bumper for some other reason in the next year (the life of the check,) cash it.
D. Cut up the check.

We don't want to do anything illegal. So: which of these four options is legal? And of the legal ones, which are ethically OK?
(Anonymous in case the right answer is "A is probably legal but I wouldn't do it if my real name were attached to the general practice in a public place.")

My head hertz.

peanut_mcgillicuty — Sun, 17 May 2009 07:19:36 -0800

More rental car insurance confusion. I live in NYC so have no car/no insurance. I can't tell if I need to buy what the rental car company is selling. I'm renting a car for five days in Georgia this week. I got the car through Orbitz--the rental car agency is Hertz.

This previous question indicates that I need to purchase additional insurance, since the insurance my credit card provides is not liability. But this previous question indicates that Hertz DOES provide primary liability insurance up to a state's limit (which in Georgia appears to be 25/50/25).

Hertz's website says this: On all rentals commencing in the state of Georgia, Hertz will provide secondary liability protection. The renters personal/business insurance is used to its limits. In the event of no applicable liability protection, Hertz, by default, becomes primary. Hertz will become primary if the Liability Insurance Supplement - LIS - is purchased. LIS is available at USD 12.95 per each full or partial day of rental. I take that to read that they provide it at no cost--but you can purchase it to make their insurance, not yours, the primary. And if you don't have insurance, it's provided automatically.

But calling the location itself to verify that was not helpful, as the girl on the phone simply said, "If you don't have insurance already, you need to buy it." I'll be calling their corporate line as well, but it certainly appears that if I'm happy with the 25/50/25 coverage they're required to offer, I don't in fact need to purchase any insurance through them.

However, I haven't dealt with car insurance in about seven years and all this back-and-forth has me questioning reality in general. Am I reading this right? If you were in my shoes, would you pay for insurance through Hertz? (It's not a huge amount but I really don't want to pay for something they'd be providing me with anyway.)

Bonus question: either way, does that insurance cover me and a secondary driver (assuming I list that second drive with Hertz), or just me?

Should I report my stolen car stereo to the insurance company?

agentmunroe — Sun, 10 May 2009 10:35:32 -0800

My car stereo just got stolen - while my car was in my driveway. Should I report it to my insurance company? So I came outside not 10 minutes ago to find the passenger-side window of my '02 Chevy Prizm smashed in, and my 3-year-old mediocre Alpine head unit stolen. It was the cheapest one at the time that had an auxiliary in (I think $199 new, not that I have the receipt handy to prove it), and I was starting to look at replacing it anyway with one that had better iPod integration and HD radio, so I'm not particularly worried about the stereo cost itself - although it would be nice to have it replaced.

What I'm not sure about is - should I handle this out-of-pocket, or report it to State Farm to see what they'll do? While it would be great to have the repairs paid for, we have three other cars under our policy; I don't know if it works this way, but I'd be worried we'd be classified as a higher risk and have our rates raised. If any rates get raised, I'd rather just pay for it myself.

As a bit of background, we live in a mediocre to bad part of town - we haven't had any home theft lately, but did have a car stolen a few years ago that we reported and was eventually returned.

I don't yet have the insurance paperwork in front of me (going to dig those up next), but our plan with State Farm is fairly comprehensive... it's covered a windshield replacement due to a crack, and all of the rental/repair costs from when I was in a not-at-fault accident about six months ago and had some collision damage taken care of.

Side question - if I don't report it, is it even worth filing a police report? And am I allowed to drive it without the window for now (NYS)?

Thanks for any thoughts.

How should I handle changing car insurance policies for a short term move?

pilibeen — Wed, 04 Mar 2009 13:04:52 -0800

I'm moving out of state - from PA to NY - for a short-term job (roughly a year). Can I have a PA car insurance policy? I've heard NY and NJ auto insurance policies are ridiculously expensive.

Since I'll still have a PA license, and a permanent PA address (my parents), can I just keep PA auto insurance? My current policy is about to renew, and I've been shopping around and finding some great quotes for PA.

So would this be entirely legal? If not, is it risky?

Old car crashed + next car purchased + insurance office closed for the weekend = magical amnesty?

Acari — Fri, 10 Oct 2008 23:24:12 -0800

Canadian Auto Insurance Question: Nebulous limbo time between vehicles edition. "Everybody Knows" that there is a 14 day grace period to get your papers sorted out. Is there? The precise situation is that one vehicle has just been totalled by a young lady who had insurance under her father's policy [last car in a highway pileup; she says she's okay; she's going to the doctor just in case] and she is now setting up a new policy with the same insurance company for an 18-year-old used car she has just purchased.
Almost everyone that I've spoken to says that putting her old plates on this car and keeping the bill of sale with her will be okay for up to 2 weeks while insurance and registration are negotiated.

This doesn't match well with my impression of insurance companies.

I've already heard enough of "you'll be fine", and I've heard a couple of people say that it's crazy to go for a millisecond without documented everything, but I want to know what the law says.
Can anyone help me look this up?

I ask not because it's urgent right now [it isn't], but because it is the friday before a long weekend and if I *needed* an answer I know I couldn't ask the insurance company until tuesday.

To further complicate the issue, this vehicle has just had a safety inspection [vehicles over 15 years old need this inspection to be insured here] which identified worn brake pads + rotors. The parts have been ordered and I will have them replaced by tomorrow. Does the legality of things change based on this inspection if the vehicle is not insured either way?
And because this is the long weekend, the insurance currently on the vehicle won't be removed until tuesday anyway. Does that count for anything? Or against anything?

And if this mythic 14 day grace period doesn't exist, why is it such a popular answer?

Driving uninsured?

Autarky — Wed, 25 Jun 2008 14:18:03 -0800

What happens if I get caught driving without car insurance? I'm going to be in possession of a car for a very short amount of time. Insuring it would be impractical. I don't *have* to drive it, but it would help a lot to make a few trips to a grocery store a few miles away. Obviously if I get in an accident I could be in some deep trouble, and it's a risk I'd have to take very seriously (though I have a perfect record).

What I'm wondering about is if, say, I get pulled over because of a broken brakelight or for speeding or something. What would be the penalty for driving sans insurance?

How long can I drive a car before turning it over to the insurance company?

tss — Tue, 15 Jan 2008 12:07:15 -0800

Someone hit my car. Their insurance company wants to total it. How long can I drive it before they take it away? I hope you'll bear with me. This will take some explaining:

Here in Pennsylvania, my '97 Nissan Sentra was fender-bent by a nice person who left a note under my wipers. As an older vehicle, the Nissan's repair costs are higher than its value... by a little bit. I had the car checked and it's mechanically sound, safe, and even capable of passing an ordinary PA state inspection. However, the insurance company wants to declare it a total loss and take it off my hands.

I could buy it back from the insurance company after they pay me for it, but then the car would be considered a "reconstructed vehicle". Here in PA that means a special, expensive, rigorous inspection designed to keep hucksters from selling totaled lemons to grannies. Passing that one could be hard for any ten year old car, I gather.

On the phone with the insurance company I've noticed that the representatives have been, well, coy about putting a date on when I have to decide what to do with my vehicle. I've been warned that waiting too long and building up mileage on the car will lower its value and hence diminish the eventual insurance payout. Which brought the question:

Me: So, ah, hypothetically speaking, what happens if I drive it around for, say, two years and then make up my mind?

Rep: I don't like to deal in hypotheticals...

She went on to say that the claim would be closed and reopened, and then repeated her warning about the car's value dropping with more mileage. But she didn't fit a deadline. Does this mean that, basically, I can drive my car around until I was planning to get rid of it anyway, and assuming I don't have an accident, the insurance company is obliged to buy it when I'm done with it for what it would be worth without the big dent? Here are the questions I need help with:

First, see question above. Then, assuming the answer is yes,

Is it ethical? Some thoughts about who's involved: the insurance company would be paying me anyway---now they can hold onto the money longer and invest it, then pay me less money in the end. The company might also choose not to raise the rates of the at-fault party until the payment---good for the at-fault party now, but perhaps an unexpected surprise later on. I'm owed money for my loss, but if my plans haven't really changed, how much of a loss is it? (Trade-in value, I suppose...)

Is it legal? This I can't answer... perhaps there's a statute of limitations? But the claim is already filed... it's just on hold. (YANAL, I know...)

Missing my ride

xo — Thu, 20 Jul 2006 15:06:58 -0800

My non-pimped ride (1993 sedan, BB value: $825) was just totaled in an accident with a commercial truck (the truck driver's fault, and he was cited). Are there any ways to get the adjuster to value the car more highly than $825 so that I have any chance of replacing it? This car cost me $2K three years ago and nothing more than oil changes since, and has been completely reliable... to me, its value was like a new car, since I never had to do anything to it and it always ran. $825 would not get me anything comparable.

Also, I haven't rented a replacement car, but I would like to if I could be more sure they'd pay for it. Are they likely to pay, considering that at $60+tax a day, in 10 days I'd have exceeded the value of my car just in rentals? My car insurance policy has a $1K deductible and no car rentals, and I haven't heard back yet from the truck's insurance claims people.

Help me lower my car insurance!!!

hummercash — Tue, 06 Jun 2006 11:10:33 -0800

CarInsuranceFilter: I'm getting shafted by my current (well, ex- now) provider, help me find a solution!!! I'm a 22 (23 in ~2 weeks) year old male, no accidents or violations, drive a 2004 red civic (lowest model possible, but still have all the safety options) and live in wallingford, pa... i was paying $290/month with GMAC but since i very rarely go to the billing address anymore, i didn't get the last bill and forgot to pay them. I just called and they now want $360/month which i refuse to pay. when i was shopping around for insurance back when i first got my car, they were the cheapest by far... geico, progressive, etc were all $350-450 so i can only imagine what they'll be now.

i was hoping you guys had some suggestions for lowering that rate or maybe a list of other companies that aren't so rediculously expensive...

Is it legal to file a damage insurance claim then not fix the damage?

Anonymous — Wed, 01 Mar 2006 13:00:22 -0800

Is it legal to make an insurance claim for legitimate damage done to your car if you have no intention of fixing the damage? If I state this intent, can the insurer deny my claim? This would be in California, if that makes a difference. Can you recommend a good online resource for plain-speak on insurance issues that leans towards consumer rights?

Is my car insurance this much lower now that I've moved to a new state?

XQUZYPHYR — Tue, 09 Nov 2004 08:31:48 -0800

Holy crap. Someone pinch me, or at least tell me my car insurance really isn't this lower in a new state. (more inside) I recently moved from New Jersey to Virginia. In Jersey, I lived with my family, where a parent is the legal owner of my car and I'm a driver on her policy. My personal rate was about $2,000 a year, and that's with benefits of being part of a long-term 20-year member's policy.

I'm looking into buying the car from the parent (therefore making it mine, officially), registering the car in Virginia, and getting insurance down there. My driving record isn't perfect- one speeding ticket, and two accidents over five years, the most recent unfortunately being declared "my fault" because the cop filing the report was, to my understanding, mentally retarded (an 18-wheeler cut me off and crushed the right side of my car; the cop decided I drove into him. I'm not kidding.)

Regardless, I did one of those online rate quote thingies... AIG Direct gave me an expected "well I'm screwed because of my record" quote of about $3,800 a year, but Geico and a few places I never heard of quoted me around $1,400... and that's with my record, and with 23-year-old me as the owner of my own car.

I've never experienced auto insurance outside the financial hell that is New Jersey... are those lower end numbers feasable, or did I seriously enter a number wrong somewhere on the form? Do any DC-area folks know offhand the average car insurance rates?

As a secondary question, I actually was wondering if, legally, VA would even know about incidents from NJ. If I'm a (technically) new driver in VA with a newly-registered car with my first personal insurance policy, would a VA-based insurance company even know? Or does that carry state-to-state? I know some states don't report traffic violations, but not sure about accident/insurance info.