Hmm, adulthood and buying insurance

Any help from an insurance salesman (or just an adult for that matter) would be greatly appreciated.

Here's my dilemma

I'm swiftly approaching the time when I have to remove myself from my parents' car insurance and get my own policy. I have a '98 4Runner that I plan on keeping until it falls apart, then I'll restore it and drive it until it falls apart again, etc.

I've no doubt invested more money in this truck than its worth as it's not just a daily driver but a hobby, and I know that if someone T-bones me and totals it, the insurance company will not give me what I think it's worth.

That being said, I've been looking into an "agreed value" policy, but most insurance companies only do this for a collectors car, and mine is a daily driver, and not old enough yet to even be considered.

Let's say for example, that I think my 4Runner is worth $10,000 with all the modifications and maintenance I've put into it. I want 10k if I or someone else totals it/steals it. Does anyone have any advice on this? How do you insure your 4Runner?

We have USAA now, and I'd like to stay with USAA if possible. They've been good to us having lost a house and two cars in the past 5 years, but if there's something better for this particular situation, I'm all ears.

Thanks!

Frontier719 said:

Any help from an insurance salesman (or just an adult for that matter) would be greatly appreciated.

Here's my dilemma

I'm swiftly approaching the time when I have to remove myself from my parents' car insurance and get my own policy. I have a '98 4Runner that I plan on keeping until it falls apart, then I'll restore it and drive it until it falls apart again, etc.

I've no doubt invested more money in this truck than its worth as it's not just a daily driver but a hobby, and I know that if someone T-bones me and totals it, the insurance company will not give me what I think it's worth.

That being said, I've been looking into an "agreed value" policy, but most insurance companies only do this for a collectors car, and mine is a daily driver, and not old enough yet to even be considered.

Let's say for example, that I think my 4Runner is worth $10,000 with all the modifications and maintenance I've put into it. I want 10k if I or someone else totals it/steals it. Does anyone have any advice on this? How do you insure your 4Runner?

We have USAA now, and I'd like to stay with USAA if possible. They've been good to us having lost a house and two cars in the past 5 years, but if there's something better for this particular situation, I'm all ears.

Thanks!

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See if they will do a stated value policy or purchase a rider for the mods you have added. (not all ins companies will do this)

1. Call insurance company. Any reputable one will do.
2. Tell them truthfully what you are doing and what you want from them.
3. Repeat step 1 & 2 a few times.
4. Pick the one that is best for you.

Most insurance companies offer what you want. Just call them and see.

You'll be wasting your money.

Here's the thing with insurance - it's a necessary evil when it's required by law or contract, or when you have something that you must have and you literally cannot afford to lose. You don't have to have that particular 4Runner, so insurance over and above what you have to carry is literally throwing your money away.

Figure out how much you feel like you can afford to pay as a monthly insurance bill, and then instead of lining some *******'s pocket with it, insure it yourself. Put it in the bank, in it's own account. Once you've got enough in that account to cover the loss of the 4Runner, you can stop paying that insurance bill but stay insured for as long as that money sits there (making you interest, by the way). No insurance company is going to give you that deal.

I have USAA also and this is what they told me. They will cover the truck at market valve. They will also cover up to 5k in mods with proof. That's easy for me since I have over 20k in receipts and then some. I can't remember what they told me about a flat rate insurance policy. Call them and talk to them.

Blue

KidVermicious said:

You'll be wasting your money.

Here's the thing with insurance - it's a necessary evil when it's required by law or contract, or when you have something that you must have and you literally cannot afford to lose. You don't have to have that particular 4Runner, so insurance over and above what you have to carry is literally throwing your money away.

Figure out how much you feel like you can afford to pay as a monthly insurance bill, and then instead of lining some *******'s pocket with it, insure it yourself. Put it in the bank, in it's own account. Once you've got enough in that account to cover the loss of the 4Runner, you can stop paying that insurance bill but stay insured for as long as that money sits there (making you interest, by the way). No insurance company is going to give you that deal.

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this. all the way this.
insurance IS a scam.

to avoid the fines you get for not abiding by that scam, purchase the cheapest insurance that you can. then pour all extra money into a "truck account". once you have FULL replacement value in the bank, you can stop adding to it.

KidVermicious said:

You'll be wasting your money.

Here's the thing with insurance - it's a necessary evil when it's required by law or contract, or when you have something that you must have and you literally cannot afford to lose. You don't have to have that particular 4Runner, so insurance over and above what you have to carry is literally throwing your money away.

Figure out how much you feel like you can afford to pay as a monthly insurance bill, and then instead of lining some *******'s pocket with it, insure it yourself. Put it in the bank, in it's own account. Once you've got enough in that account to cover the loss of the 4Runner, you can stop paying that insurance bill but stay insured for as long as that money sits there (making you interest, by the way). No insurance company is going to give you that deal.

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nevada said:

this. all the way this.
insurance IS a scam.

to avoid the fines you get for not abiding by that scam, purchase the cheapest insurance that you can. then pour all extra money into a "truck account". once you have FULL replacement value in the bank, you can stop adding to it.

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OP, this is the best advice you are like to get on this subject. save your money and that's your own personal insurance policy.

there is also the liability vs collision vs comprehensive. this you need to decide on. If you vehicle is paid off you can carry any of the above. for some easy reading see here (i am not advocating a quote from the link i sent, just for information only):

Liability vs. Collision vs. Comprehensive Insurance

the decision is yours.

I think there's an important distinction between having your car insured and having insurance that covers shit you do. If its your fault, and people get hurt, or it's an uninsured driver, things can get out of hand real fast when it comes to money.

As far as insuring his vehicle, saving is a good idea in general. But let's be real, if you total your car and have been putting 50 bucks for 5months in a savings account making a 10th of a percent of interest, you're stuck with a ****ed up car and 250bucks.

KidVermicious said:

You'll be wasting your money.

Here's the thing with insurance - it's a necessary evil when it's required by law or contract, or when you have something that you must have and you literally cannot afford to lose. You don't have to have that particular 4Runner, so insurance over and above what you have to carry is literally throwing your money away.

Figure out how much you feel like you can afford to pay as a monthly insurance bill, and then instead of lining some *******'s pocket with it, insure it yourself. Put it in the bank, in it's own account. Once you've got enough in that account to cover the loss of the 4Runner, you can stop paying that insurance bill but stay insured for as long as that money sits there (making you interest, by the way). No insurance company is going to give you that deal.

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simple said:

I think there's an important distinction between having your car insured and having insurance that covers shit you do. If its your fault, and people get hurt, or it's an uninsured driver, things can get out of hand real fast when it comes to money.

As far as insuring his vehicle, saving is a good idea in general. But let's be real, if you total your car and have been putting 50 bucks for 5months in a savings account making a 10th of a percent of interest, you're stuck with a ****ed up car and 250bucks.

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that's where the scam comes into play. you could be paying $50/month or $250. whatever. for YEARS. never get into an accident, never need to use it. then you have paid out all that money with NOTHING to show for it.

simple said:

I think there's an important distinction between having your car insured and having insurance that covers shit you do. If its your fault, and people get hurt, or it's an uninsured driver, things can get out of hand real fast when it comes to money.

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That's the insurance he's required by law to carry. Nobody should be driving without good liability insurance (or a bond, in some states).

nevada said:

that's where the scam comes into play. you could be paying $50/month or $250. whatever. for YEARS. never get into an accident, never need to use it. then you have paid out all that money with NOTHING to show for it.

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Agreed. But that's why it's insurance. In a day in age where every clown is texting and driving, you could be doing everything right, and some ******* runs a red light or plows into the back of your car and takes off. You can take the chance and be lucky or you could get royally ****ed. By the flip side, you could pay for some shit insurance and still get ****ed because you're paying 24.99 a month or something stupid.
For a 98 4Runner, sure, don't pay for insurance over what the car is worth. That's absolutely solid advice, but I have to play Devils advocate.

Im not saying you're wrong. I'm saying you better be prepared to cover your loss from day 1 if you choose that option.

Thanks for the replies! I guess I'm kind of already doing a combination of what you all have suggested. I have comprehensive coverage on it right now as it would be burdensome to pay out of my savings to replace it if it were totaled.

But since it is an older car, I take $200 per paycheck and put it in my "4runner maintenance account" which is less than I would have to pay for a new car payment, and it's more than enough to cover the unexpected repairs, and splurge every once in a while on mods.

With the risk of uninsured drivers, idiots, etc, I think I'm uncomfortable having anything but comprehensive coverage on anything I drive. However, it definitely makes sense to put what I would otherwise be spending on an expensive insurance policy into a separate savings account should the need arise.

thanks all for the great suggestions

Frontier719 said:

Any help from an insurance salesman (or just an adult for that matter) would be greatly appreciated.

Here's my dilemma

I'm swiftly approaching the time when I have to remove myself from my parents' car insurance and get my own policy. I have a '98 4Runner that I plan on keeping until it falls apart, then I'll restore it and drive it until it falls apart again, etc.

I've no doubt invested more money in this truck than its worth as it's not just a daily driver but a hobby, and I know that if someone T-bones me and totals it, the insurance company will not give me what I think it's worth.

That being said, I've been looking into an "agreed value" policy, but most insurance companies only do this for a collectors car, and mine is a daily driver, and not old enough yet to even be considered.

Let's say for example, that I think my 4Runner is worth $10,000 with all the modifications and maintenance I've put into it. I want 10k if I or someone else totals it/steals it. Does anyone have any advice on this? How do you insure your 4Runner?

We have USAA now, and I'd like to stay with USAA if possible. They've been good to us having lost a house and two cars in the past 5 years, but if there's something better for this particular situation, I'm all ears.

Thanks!

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I'm 24 and my dad just keeps my car(s) "registered" to him and has insurance for whoever is driving/using the car at the time(insured borrower or something like that)because I'm not ready to pay 2k a year for a 98 4runner and 2013 Jetta . I pay him a couple hundred every 6 months and I'm golden, so does my brother and both sisters and cousin.

Beer.runner3 said:

I'm 24 and my dad just keeps my car(s) "registered" to him and has insurance for whoever is driving/using the car at the time(insured borrower or something like that)because I'm not ready to pay 2k a year for a 98 4runner and 2013 Jetta . I pay him a couple hundred every 6 months and I'm golden, so does my brother and both sisters and cousin.

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That would work I suppose, but I dont want to be involved in my parents' finances and I dont really want them involved in mine haha

Frontier719 said:

That would work I suppose, but I dont want to be involved in my parents' finances and I dont really want them involved in mine haha

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Same here but the catch is he pays 140 for the two of my cars and I pay him 250 twice a year, he just made about 220-250 a year doing nothing and I saved thousands. The key is pay them and they'll be happy or even make up a contract with them if they roll like that. They'll love if they see you saving tons of cash for the future (saving for a home, using it to pay student loans or debt, etc. and MORE MODS) instead of paying to insure a dumb car. I'm not saying do it if your not comfortable but I know that parents love their "frugal" kids. P.S.-I just bought my new 98 limited 4wd for the price of 1 year of insurance if I paid my own, thats the difference.

I pay $75/month to insure a $35,000 vehicle with $250 deductibles. I like Kid's strategy, but only for an older vehicle. I've paid $2500 in insurance over 3 years, but i feel it's worth it. I had my roof re-painted after a dumbass on the highway veered into the shoulder and sent slush flying all over the damn place.

Frontier719 said:

Thanks for the replies! I guess I'm kind of already doing a combination of what you all have suggested. I have comprehensive coverage on it right now as it would be burdensome to pay out of my savings to replace it if it were totaled.

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Burdensome but not impossible? Then you're wasting your money.

Here's why. Unless you're a terrible driver, the odds of you losing your vehicle to an accident are very very low. Because they're so low, and because you can cover the loss from your existing savings if you had to, you're in a perfect position to drop the comprehensive coverage and just carry liability. Put the balance in a dedicated savings account every month until you've reached what it would take to replace the truck, it'll take a year or two, and then stop. Now you have comprehensive coverage on the truck without having to pay for insurance coverage every month. You're young - beginning to kick the insurance company habit now will save you multiple hundreds of thousands of dollars over the course of your lifetime.

Or, you can play it "safe" and spend the rest of your life buying yachts and summer homes for insurance company executives. Some people hate the idea of covering their risks themselves and would prefer to pay for the convenience. That's certainly an option. That's definitely the option the insurance industry would like you to choose.

Not sure i have the stamina to cover everything here, but I'll try. Please note that I've been out of the insurance bidness for about 5 years now, and my experience was limited to one company in TN and AR. Nothing here is to be construed as legal, insurance or other professional advice.

First let's talk coverages:

First party coverages cover damage and injury to you, they include:

+Collision- covers damage caused to your vehicle by collison with another vehicle or object or by rollover or upset of the vehicle, regardless of who is at fault. Covers up to the fair market value ( which is not the same as replacement cost) of your vehicle, less the deductible you choose when you buy the policy. Comes in handy not only if you cause a wreck, but also if another party causes a wreck and their insurance takes too long to investigate or disputes liability. If your insurance pays for your damages, they can pursue the other party to recover, if your company doesn't, they can't pursue.

+ comprehensive - pays for what collison does not, including theft, vandalism and animal hits.

+ medical payments- pays for medical treatment for you and passengers in your vehicle, regardless of who is at fault. Pays immediately. Important to note: if somebody hits you and you get hurt, their insurance does not pay for your bills until you are done with treatment and ready to settle. you are responsible for your bills until then. If the injury is bad, this could take months. This is why i personally carry a $25,000 limit on this coverage. Medical insurers can be wanky on paying these bills sometimes, because they're like "we shouldn't be paying this, the butthole who hit you should". To avoid the trouble i carry a high limit on this.

+ uninsured motorist property damage/personal injury liability- these two coverages pay out if you get hit and the other party is at fault and doesnt have insurance. Also covers hit and run, provided it meets certain criteria.



Third party coverages- covers losses to people other than you

+ property damage liability- pays for property damage you cause to others when driving, or under certain circumstances when someone else is driving your vehicle. Also DEFENDS you when you are NOT at fault.

+ personal injury liability- same as above but for personal injury. Also pays for injury to your passengers when you are at fault. Also DEFENDS you when you are NOT at fault.


I have a 2001 t4r and carry high limits on all my liability coverages and medical payments coverage. We're older than you and have a lot more to lose in a liability situation, though.

I carry collison because i saw a lot of cases where the other party was at fault but disputed it, their insurance company did a halfassed job investigating and just took their insured's word for it, and there wasn't a damn thing i could do about it because my insured didn't have collison.

Brique said:

I carry collison because i saw a lot of cases where the other party was at fault but disputed it, their insurance company did a halfassed job investigating and just took their insured's word for it, and there wasn't a damn thing i could do about it because my insured didn't have collison.

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This is another thing to consider.

Liability (medical) is very interesting and changes from state to state. Some states are "at-fault" and some are "no-fault" fault.

research is your friend, and knowledge is power.

I have also been on the wrong side of an accident where the other driver was lying about what happened and being unrepsonsive and their insurance company was a bunch of crooks and no good samaritan witnesses stepped up. I only had liability as my car was only worth ~3k. I had to fight for over 6 weeks and it was painful, i didnt have another car to drive around and make it easier. From then on that 6 weeks of trouble for me wasnt worth my time and i carry comprehensive. I get a good rate and have peace of mind. and thats what i pay for. especially living in a huge populous city. If i lived rural i think it would be different, but Houston is too big with too many bad/distracted/uninsured/dumb/lying/terrible drivers.

flame suit on for Kid and Nevada to take it to me :target:

also little sidenote: if you witness an accident and can't stay to describe what happened to the police as an OBJECTIVE THIRD PARTY please leave your business card with the drivers. Its likely the at-fault driver will just toss it and try to lie their way out of it, but the driver who isn't at fault will appreciate your assistance because your information will prove they ARENT lying and remove the he said/she said BS from the whole equation.

Mashroomboss said:

Here's a good place to look for any kind of insurances www.unicominsurance.com. For the past year, I've bought and sold 13 cars. One was trashed by a lamppost after 20 hours of non-stop driving from Orlando to Cheyenne. But all the expenses were covered and I ended up without a huge hole in my budget.

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I don't think too much guys in the states would work with a UK insurance co. Just me 2 cents.