I HATE Insurance

ultrarunner · Feb 28, 2008

The biggest thing I hate about insurance is that it is so Dang complicated. Just when you think your all set... something comes along and changes.

I've been through several Insurance Crisis here in CA and my family has a 35 year plus no claim history until last year when someone tripped on the city sidewalk in front of Rental and the Insurance paid $5000 to make them go away.

CA has had several insurance Moritoriums where companies left the State or would not write new business. Imagine buying a home and only being able to get the bare minimum fire policy through the State with no Home Owner Coverage?

I do have a Company for my Antique Cars that has been GREAT! Had them for 35 years and they are very reasonable... 22 cars for $1200 a year with NO DEDUCTABLE and stated value coverage... and they added my trailer at no additional cost.

Antique Auto Insurance is not valid on vehicles used for daily transportation... I often wondered why all insurance can't be as reasonable and easy???

gemini5362 · Feb 28, 2008

Alan I looked over your list and did not see an umbrella policy listed. If you dont have one you might want to look into it. It is probably one of the best deals you can have in insurance for your transportation and dwellings

Builder · Feb 28, 2008

I bought a 2 mil umbrella for like $180/yr.

gemini5362 · Mar 2, 2008

Builder does your policy reflect the number of things on it. I believe the rate on my 1 million policy was something like 36 to 40 per vehicle and then maybe something like 12 to 18 per house. I dont remember the exact amounts but I think it is somewhere around 400.00 for 4 vehicles and 7 houses that are on the policy

AlanB · Mar 3, 2008

My agent said it would work out cheaper to bump my levels up on each insured item, rather then to do an Umbrella.

I don't know that he is right or wrong, but he is whom I have thrown my cards in with so I have to hope he has somewhat my best interests at heart.

gemini5362 · Mar 3, 2008

AlanB said:
My agent said it would work out cheaper to bump my levels up on each insured item, rather then to do an Umbrella.

I don't know that he is right or wrong, but he is whom I have thrown my cards in with so I have to hope he has somewhat my best interests at heart.

He is very very very very wrong
You have to bump them up to get umbrella policies but once you do the umbrella policy is dirt cheap.

Let me give you an example of why he is wrong. My attorney told me about a case they had where a client was in a car wreck. This client hit another car on a curve in a very curvy mountainous area. The other person had a major artery get cut in the wreck. Paramedics were able to keep him alive until he could get to the hospital. He lost a lot of blood and was in a coma for 4 months. The client had just bought a new lexus and her insurance company had her with all minimum coverages which in arkansas is 50,000 liability. How long do you think 50,000 lasts when someone is in a coma in a hospital for 4 months. Luckly the person lived and recovered I believe the client settled for paying the hospital bills and 80,000 dollars on top of that. I dont know how much it cost but i do know that everything above 50,000 came out of her pocket. Now assuming the hospital bills were free that would mean she had to pay at least 30,000 out of her pocket. My umbrella policy cost me around 400 per year because of the number of properties and cars that I own. still 30,000. oo if that had been me would have paid a lot of premiums. I have a million dollar policy if you noticed someone I believe it was builder has a 2 million dollar policy. Your agent is wrong and he is being wrong with your liability. If something should happen and you needed that policy he wont pay the money out of his pocket i bet.

I am going to point out that you need an umbrella policy only if you have something someone could take. I would not recommend my children buying one because they dont own anything. If they lose a big lawsuit they could declare bankruptcy and go on. I have hundreds of thousands of dollars worth or property that is not mortgaged and I own free and clear. I also have other property as well. I also have some really fun toys and I could not imagine losing my tractor. I would think you have enough toys to have to worry about what would happen if you have an unfunded judgement against you. It would not be pretty

AlanB · Mar 3, 2008

I posted and somewhere it got lost in oblivion.

I went back and have asked again what the actual cost will be. I have also re-read his response to me, and it may be more accurately phrased as "you have enough" (currently 300 on each truck as well as 1M on the business in general)

I can insure myself into the poorhouse I think.

I do wonder what the umbrella wil cost though, should know today.

Okay, just got the pricing back. For us the minimum cost is $500 plus $30 per vehicle, plus I would have to raise the rates of coverage on my vehicles before they will write the umbrella.

Where I am at, with the insurance company I am with, I think I will just sit tight.

powerstroke444e · Mar 3, 2008

gemini5362 I to have advised clients that carrying higher limits on a policy is better than purchasing an umbrella, the reason is that I can offer 1 million liablity, propertie damage & uinsured/underisured motorist coverage, this with 1m limits on the home policy will cover everything but liable & slander. If you have 250,000/500,000 limits with 1m umbrella you are protecting everyone better than your self. I have had clients use over 250,000 of uninsured limits. Each person has differant risks & differant tolerance for risk so consult your local advise.

The purpose of insurance is to transfer risk, you have to decide if/what you are willing to pay for someone else to fix your mistakes/headaches.

gemini5362 · Mar 3, 2008

powerstroke444e said:
gemini5362 I to have advised clients that carrying higher limits on a policy is better than purchasing an umbrella, the reason is that I can offer 1 million liablity, propertie damage & uinsured/underisured motorist coverage, this with 1m limits on the home policy will cover everything but liable & slander. If you have 250,000/500,000 limits with 1m umbrella you are protecting everyone better than your self. I have had clients use over 250,000 of uninsured limits. Each person has differant risks & differant tolerance for risk so consult your local advise.

The purpose of insurance is to transfer risk, you have to decide if/what you are willing to pay for someone else to fix your mistakes/headaches.

interesting information. I am curious now I will have to see what my insurance agent says about that also some of his competitors. The issue I think is price. for what I pay for my umbrella insurance can i get equal liability coverage for as cheap. I dont need 1 million on my vehicles nothing I have is worth that and they have full coverage on what they are worth. My house has replacement cost so a large coverage on that is not a big deal. I have pretty good health insurance so dont need the coverage on that. What I do need is coverage for liability and that is pretty cheap. If i can get equal coverage for the same money I will but I dont think that I am going to get anything cheaper than the umbrella. Just for grins what would the difference be for me to get insurance through you both ways. For planning purposes home value of 250,000, 6 rental houses at 100,000 3 cars, 1 new at 65,000
a truck new at 50,000 a sedan new at 36,000 and a car with liability only at 3,000 these are just made up figures. If i get them the way you say with 1 million dollar full policies with 500.00 deductible versus full coverage on the house policies and the cars with the cheaper car exception full coverage
450,000 500,000, 450,000 auto liability coverage. then 1 million in umbrella with that . I know you need car serial numbers so I can make up some vehicles just generic, 2008 mercedes slk 350 for the 65000 dollar car, chevrolet silverado 2008 2500 HD diesel crew cab for 50,000 4 door lexus sedan for 35,000 and a geo tracker for 3000. If that is enough information what would the price difference be to go both ways. I realize that is a lot of looking up information and if too much trouble I understand. The cars are not what I own I just happened to at one time or another look at all of those vehicles and know about what they cost. The only exception is the geo tracker I have one of those and love driving it.

texbaylea · Mar 8, 2008

I have a personal liability policy with one of those companies with "State" in their name. When they found out that I had a E-GO Workhorse they claimed that it was an ATV and doubled my qoute. I think that I should shop around. Thank goodness that I don't have my automobiles with them.

Vernon