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Car Leasing, Buying Insurance
Sep 17, 2009 (9:09 am)
I realize that I may be in the minority with a $1 million UM umbrella ($175/year)...but, as a PI attorney, I have seen medical bills easily surpass $250K, and the injured party, now permanently injured, walk away with only $25K or $50K because that was the insurance limit that the at-fault driver had...suing them would do no good, as they could dump the judgment in Chapter 7 bankruptcy...
If the victim had their own UM, and the $1 million umbrella, they could have recovered against their own UM (under-insured, along with uninsured)ins and not been destitute after the wreck...
From a layman's standpoint, the odds of ultra serious injury are quite low, but from a PI attorney's view, this scenario happens more often than one might think, so I see the need to protect myself and family...and, with the cost of an add'l $175 per year, it is not prohibitive...but if one of us was seriously injured, I have a way to recover if the illegal immigrant was uninsured, or the 25 year old deadbeat bought his minimum policy off some TV ad...
#432 of 467 Re: wdhyte [marsha7]
Sep 17, 2009 (9:25 am)
hhmmmm, excellent advice/view mate...appreciate the feedback; makes me wonder though that if you're the victim in the accident and have to recover against your own policy via the umbrella due to the no-neck being UM, how long it would take your insurance company to drop your butt once they've paid out on it...and good luck finding another insurer once they discover that eh...
#433 of 467 Re: Looking for GAP for yr old used car, int rate over 12% [Mr_Shiftright]
Sep 17, 2009 (9:42 am)
First off , why are you financing a car for 72 months? maybe buying used is a better option for this person. (I know, i know, used cars are not good enough for most people).
I understand the logic shifty and marsha7 but I don't see Gap insurance as a "must have". Why finance a car that depreciates quickly for so long? You may as well buy an extended warranty and the service contract.
#434 of 467 wd and downtown
Sep 17, 2009 (12:07 pm)
down: It all depends on your financial situation...unless you finance under 3 years, or place a substantial down payment (25% or more), the odds are that your vehicle will depreciate much fatser than the loan balance is paid down...hence, the "gap"...look at an amortization table for your loan, and assume that your vehicle will drop at least 25% in year one, 50% in year two (esp if made by UAW)...if your vehicle estimated value and loan payoff are never over $1000, then gap is probably not necessary...but if that gap is over $2,500, then gap for a measly $10/month can be quite useful...if you are leasing, it is even worth more because you owe the full amount of the lease no matter what, and the insurance that pays for the "total" will certainly not pay off the lease...since most folks do not have $2500 sitting around to pay off their loan, I recommend gap, almost always...that being said, it is only my reco...if you wish to assume the risk, please do...but many folks reading these posts have no idea what gap ins is or what it does, so my postings are an attempt to tell them why I think it is wise to purchase, but no one has to do so...this is a supposedly a free country, altho much less so at the end of this administration...
wd: "if you're the victim in the accident and have to recover against your own policy via the umbrella due to the no-neck being UM, how long it would take your insurance company to drop your butt once they've paid out on it...and good luck finding another insurer once they discover that eh... "...I believe that is no longer important...if you are sufficiently injured that you must recover pain and suffering from a $1 million umbrella, the last thing you need to worry about is if they will drop you, as your condition may be such that you are unable to work again, and you have to invest and live off the settlement...whether they raise your premium 25% or you need new insurance is hardly the 1st priority if you are injured that seriously, IMO...also, don't forget...you can only recover assuming that the OTHER guy is at fault, so you may not be dropped at all...now, if YOU cause the wreck, then you have no recovery at all except for medpay to pay your bills, if you have medpay on your policy...
This is only my belief, considering what I have seen from folks who are were seriously injured and did not have sufficient UM, and, with 20/20 hindsight, if they had had it, they could have been adequately compensated...
Further, it is my belief, without any proof at all, that there is a percentage of folks out there who probably cause a disproportionate amount of accidents simply because they are bad drivers, so they are the ones who statisically may drive and have little or no insurance, when they are the ones who should carry it the most...adequte UM protects you from those folks, altho it actually protects you against EVERYBODY with insuff insurance...last year I had a case where the father makes very good money, but he scrimped on his insurance...$50K in liability but only $25K in UM...I could not understand why...
#435 of 467 Re: wd and downtown [marsha7]
by Mr_Shiftright HOST
Sep 17, 2009 (1:28 pm)
"that there is a percentage of folks out there who probably cause a disproportionate amount of accidents simply because they are bad drivers
I don't think people in Boston are going to like you talking behind their backs
#436 of 467 Re: wd and downtown [marsha7]
Sep 17, 2009 (6:31 pm)
I understand the entire argument you are presenting marsha7 and don't disagree. But after this housing/credit mess that caused us to be in this recession, I just think we need to change our spending habits. If you need a new car, put 20% down and don't finance a car for more than 5 years. Can't afford that, than buy used or save up the money.
Who knows? I might be overreacting.
You blame the current administration for our "lack of freedom", I blame our past couple decades of living beyond our means, greed and corruption. What is happening today is a direct result of living beyond our means. $700B for the banks, another $790B to keep the economy going. And unemployment is at 9.4%. Personally, I am working on paying off all my debt (except home and car) so I can handle whatever the government can dish out.
#437 of 467 Re: wd and downtown [Mr_Shiftright]
Sep 17, 2009 (6:32 pm)
Actually I thought he was talking about my sister in law....
Sep 17, 2009 (6:45 pm)
"I just think we need to change our spending habits. If you need a new car, put 20% down and don't finance a car for more than 5 years. Can't afford that, than buy used or save up the money"...I cannot disagree with you there, but a downstroke of 20% on a 5 year loan would, IMO, have NO CHANCE of keeping up with the depreciation, especially if it is an American car...except for maybe Corvette, no GM car will be worth 50% of its purchase price in 2 years, whereas the loan payoff in 2 years, with 20% down, I think will be thousands of $$$ higher than the vehicle value...if totalled in first two years, then the owner will have to come up with thousands out of pocket, which most cannot do...so, all my arguments is this: gap insurance at a measly $10/month will remove that stress, and the cost is nominal...I do it for the stress relief...if you don't want to, don't buy it...but it IS an intelligent way for folks to protect themselves from a major payout with money they do not have...
I was PO'd at Bush for the first bailout as much as I am about Obama...most conservatives (altho I consider myself mildly moderate......meaning just to the left of Attila the Hun) were upset at Bush for No Child, Medicare Part D, and Bailout...and a few other things as well...
#439 of 467 Re: wd and downtown [marsha7]
Sep 23, 2009 (10:50 am)
If you are able to pay off a new vehicle or even put a large portion of it on say a HELC, you can consider New Car Replacement. Kind of like GAP but you don't have to have a loan. I'm with Allstate and bought a Saturn Outlook August 2008. Put it on the HELC and several months later when we sold a lake-front cabin in Ark. I used the capitol gain on that to pay off that amount on the HELC. The new car replacement would replace the vehicle with a new one for the first 3 model years. IIRC it was about $5-8 per month. I increased deductible from $250 to $500, but they give you a $100 reduction each year you don't use the deductible so that dropped to $400 and this year will drop to $300.
Also, 15-20 years ago we added a $1M umbrella policy. It covers our house, lake behind the house, pool, vehicles, etc. liability. IIRC it is between $300-$350 each year. Just looked it up $336 a year. I hate paying insurance, but the alternatives if the worst happens are unplesant to worry about. Of course, before I accumulated some assets it there was not as much risk as there is now.
#440 of 467 Re: dtown [marsha7]
Sep 24, 2009 (2:20 pm)
I'm actually pretty moderate myself. We need to start living within our means. That hurts businesses because we don't spend as much but in the long run it's better for this country. Just wish we had more than two choices.