The insurance ripoff

C

Camper6

Well-known Member
Location
Northwestern Ontario Canada
O.K. Let's say you buy a new car and it costs you $30,000.

You keep it for ten years and then you get in an accident and the appraisers say it's a total write off.

So the insurance company offers you the book value and let's say it's $3000.

But wait a minute. I have been paying premiums based on $30,000, so why haven't you adjusted my premiums to the depreciated value?

This is a point I would like for a political party to endorse. What are your comments?
 

Nope. At least not where I live. The yearly premiums don't change much and usually go up and in truth how many people actually read their insurance policy and more importantly understand what they are reading.

Thats something you should check out with your insurance company.
 

You're talking about collision coverage. Most of the premium goes to liability and medical coverage -- a huge deal here because everybody is so lawsuit-happy. I also carry high uninsured/underinsured motorist coverage because so many here carry only minimum (or no) coverage, even tho it is required by law. The minimum coverage carried by the other driver isn't even a drop in the bucket if you are in a catastrophic collision, like my husband was. His medical bills reached over a quarter million dollars in 2000. He was hit by an uninsured (and judgment proof) driver travelling at a high rate of speed because he had fallen asleep at the wheel. My husband's vehicle was knocked off the highway overpass onto the highway below.
 
Iodine said:
Maybe I'm wrong but I thought insurance premiums go down as the vehicle ages.
Click to expand...

Camper6 said:
Nope. At least not where I live. The yearly premiums don't change much and usually go up and in truth how many people actually read their insurance policy and more importantly understand what they are reading.

Thats something you should check out with your insurance company.
Click to expand...

Your insurance company will 'let' you pay for full-boat coverage until you tell them to lower coverage, the insurance company won't do that for you.
 
No, but they'll let you drop collision coverage when you want to, like when your car's book value drops to less that you think it's worth paying collision premiums for.
 

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