Advice on insuring my 97 4Runner as a 2nd vehicle

[atalarico]

Hey all,

I recently was able to give my 97 4Runner (230k and rising!) a bit of a break from having to do an almost daily 60-mile RT commute by getting a new car to be my DD.

I feel a bit bad because I haven't driven the 4Runner in the last month (except once for a nice spa/car-wash day). I am keeping the 4Runner for probably once or twice a month off-road stuff (primitive camping, remote trail-head access, etc.) in late Spring/Summer/Fall. She's also going to be good with deep snow duty, home projects/moving stuff, and "Oh crap, I need a vehicle to drive because I just screwed up this DIY home fix on my daily driver".

I know it sounds crazy to some people, but up until I got a new daily, I had the 4Runner fully insured. She was my only car, and I would have been pretty screwed without her. I now realize that I probably wouldn't have gotten much since I've heard insurance companies just total out most cars now.

Anyway, I'm looking for advice on how to insure the 4Runner considering I don't drive it that often. While I don't remember exactly how much the quote was to add it to my new policy, it wasn't super expensive (maybe $50 for 6-months?). I'd be nervous to forgo comprehensive too since I park it outside under large old trees in the "Hail Belt". I should probably still buy a cover for it though, eh?

One thing I wondered was if I could carry the minimum insurance, and bump up the coverage level if I'm going on a longer trip (or increasing my odds of being in an accident due to exposure on the road). I know it usually takes an overnight for insurance changes to take effect, but I'm just wondering if that's something you can even do or if it ends up causing issues with insurance.

Let me know what you all think!

 

[RPS99SHO]

I carry liability only on my 99. Like you, it's a second vehicle, a toy that will accumulate maybe 5k miles annually. It's about $50/6 months. I get nervous sometimes not having at least comp on it, but anything that damages it to the point that I'll be wondering if I can afford to fix, insurance would just total it out anyhow.

 

[atalarico]

I carry liability only on my 99. Like you, it's a second vehicle, a toy that will accumulate maybe 5k miles annually. It's about $50/6 months. I get nervous sometimes not having at least comp on it, but anything that damages it to the point that I'll be wondering if I can afford to fix, insurance would just total it out anyhow.

Ahh, good to know. Judging by your sig photo, it looks like you have a garage? That certainly helps limit the opportunity for comprehensive damages. I think adding comprehensive is only about half the price of what the collision insurance costs, but I'll have to double check that.

I think there are fewer comprehensive type events to happen in the winter months here anyway (again, read: Hail Belt region), so I wonder if I can add and drop that seasonally.

Definitely sounds like I should get a cover anyway though if I'm only driving it once every few weeks.

 

[RPS99SHO]

Ahh, good to know. Judging by your sig photo, it looks like you have a garage? That certainly helps limit the opportunity for comprehensive damages. I think adding comprehensive is only about half the price of what the collision insurance costs, but I'll have to double check that.

I think there are fewer comprehensive type events to happen in the winter months here anyway (again, read: Hail Belt region), so I wonder if I can add and drop that seasonally.

Definitely sounds like I should get a cover anyway though if I'm only driving it once every few weeks.

Yes, I have a garage, but no, the Runner doesn't live in it. That was the night I bought it, so I test-fit it in the garage. Normally the wife's car parks there, as does my DD.

I have thought about getting a cover just to keep the sun damage down.

 

[atalarico]

Yes, I have a garage, but no, the Runner doesn't live in it. That was the night I bought it, so I test-fit it in the garage. Normally the wife's car parks there, as does my DD.

I have thought about getting a cover just to keep the sun damage down.

Ah, that makes sense. You must really love your wife then

Yeah, I'm looking at covers with the understanding that the paint on my 4runner is already pretty trashed, but this is to help protect it from becoming even more trashed. The living under trees thing sucks because of sap, bird shit, tree droppings, and sticks/branches falling. I think I can get a cover for under $200 that will be just fine since it's not a 67 Stingray or anything.

 

[NWFLBowhunter]

I keep full coverage on my 97, and I have 4 vehicles in the driveway. The way I look at it, I have too much invested in it, and our insurance is cheap. I would hate to total it and not get a dime in return.

 

[jwkilgore]

Even if you keep full coverage, most insurance companies have a "rarely driven" category with significantly reduced rates. I used this for a vehicle once and it can save a good bit of money.

Liability is required, and I've always kept "comprehensive" at a minimum (windows, deer, falling rocks, vandalism, etc.).

As for full value coverage, just look at the blue-book value (what you might get from insurance company) compared with the cost of this specific coverage along with your driving habits. Full coverage really only comes into play if you are at fault. One side benefit is if an accident is disputed (you each claim it was the other's fault) or the other guy tries to short change you, your insurance company will fight for you if their money is at stake; otherwise you may have to hire a lawyer.

 

[Scramble]

I've had full coverage on my 99 since new, It hasn't been my daily driver since 2005. Has anybody gotten "Agreed Value"?

 

[atalarico]

Liability is required, and I've always kept "comprehensive" at a minimum (windows, deer, falling rocks, vandalism, etc.).

As for full value coverage, just look at the blue-book value (what you might get from insurance company) compared with the cost of this specific coverage along with your driving habits. Full coverage really only comes into play if you are at fault. One side benefit is if an accident is disputed (you each claim it was the other's fault) or the other guy tries to short change you, your insurance company will fight for you if their money is at stake; otherwise you may have to hire a lawyer.

So, when you say you've kept Comprehensive to a minimum, what do you mean? Do you just carry a high deductible (over $1k)?

I just added the T4R to my new policy and it's $40 more a month (total of $135 for both vehicles). Is that a lot? I selected the 0-2,999 miles a year category, so I'm guessing that's the lowest mileage they'll go. I have $1k deductibles on collision and comprehensive. I could go higher, but the cost difference is only a few bucks between $1k and $1,500.

Otherwise it looks like I can't split up the bodily kind of coverages between the Golf and the 4R.

 

[jwkilgore]

Not to a minimum, I said "at a minimum". In the past, even if I decided to eliminate full coverage for older vehicles, I always kept liability (required by law) and comprehensive as my minimum level of coverage. My deductible is mid-range... I think it's less than $1,000, but well over the minimum of $250.

Currently my oldest vehicle is a 2008. It's paid for, but still has some value left, so full coverage all around. But when the vehicle value starts dropping to a few thousand dollars, (i.e., if I totaled it I'd get a check for $3,000 less deductible), continuing to pay for full coverage is financially questionable. Especially when "totaling it" could consist of something as simple as an at-fault parking lot fender-bender.

 

[atalarico]

Not to a minimum, I said "at a minimum". In the past, even if I decided to eliminate full coverage for older vehicles, I always kept liability (required by law) and comprehensive as my minimum level of coverage. My deductible is mid-range... I think it's less than $1,000, but well over the minimum of $250.

Currently my oldest vehicle is a 2008. It's paid for, but still has some value left, so full coverage all around. But when the vehicle value starts dropping to a few thousand dollars, (i.e., if I totaled it I'd get a check for $3,000 less deductible), continuing to pay for full coverage is financially questionable. Especially when "totaling it" could consist of something as simple as an at-fault parking lot fender-bender.

Ah, that makes sense. Last time I checked (a few months ago) my 4R was Blue Booking in the high $4s for it's condition (97 Limited w/ 230k in the better mid-range condition). I was surprised, so that's why I think it made sense to keep it fully insured. Does anyone else agree with that line of reasoning? $480 extra a year on my policy to keep it fully insured with comp and collision at $1k deductible?

I'm 31 and have been handling my own insurance since I no longer could just give Mom a check for it and not think anymore about it. Yet, it's still a bit of a mystical entity to me...and I hate thinking that they like to keep it that way.

 

[jwkilgore]

Ah, that makes sense. Last time I checked (a few months ago) my 4R was Blue Booking in the high $4s for it's condition (97 Limited w/ 230k in the better mid-range condition). I was surprised, so that's why I think it made sense to keep it fully insured. Does anyone else agree with that line of reasoning? $480 extra a year on my policy to keep it fully insured with comp and collision at $1k deductible?

It's all math... blue book in high $4's, so let's just say $4840 to make it easy. If you total it tomorrow (it doesn't take long to get $4k+ in body damage) the insurance company will cut you a check for blue book minus deductible, so $3840. If you were to cancel the policy and put the $480 in a savings account, it would take eight years ($480 * 8 = $3840) to break even. Coverage makes sense for now.

But as the vehicle drops in value, at some time you'll come to the point where the check you'd receive just isn't worth the premiums. Especially if you are a safe driver (no texting, no speeding, no aggressiveness, etc.) and especially since you only drive it a few miles a year.

Also, keep in mind that insurance companies have their own criteria for establishing "blue book" vehicle values, and it could result in a quite a bit lower of a payout than you are thinking.

 

[atalarico]

It's all math... blue book in high $4's, so let's just say $4840 to make it easy. If you total it tomorrow (it doesn't take long to get $4k+ in body damage) the insurance company will cut you a check for blue book minus deductible, so $3840. If you were to cancel the policy and put the $480 in a savings account, it would take eight years ($480 * 8 = $3840) to break even. Coverage makes sense for now.

But as the vehicle drops in value, at some time you'll come to the point where the check you'd receive just isn't worth the premiums. Especially if you are a safe driver (no texting, no speeding, no aggressiveness, etc.) and especially since you only drive it a few miles a year.

Also, keep in mind that insurance companies have their own criteria for establishing "blue book" vehicle values, and it could result in a quite a bit lower of a payout than you are thinking.

Well, when you put it like that, it makes a lot more sense! Hurray for math (or mathS as my UK coworkers like to say)! I'm a very safe driver in the 4Runner, but my worry is always other drivers. That being said, off-road bumps happen, but I wouldn't be claiming that anyway since I've heard coverage issues get complicated when the rubber meets the trail.

On the point of depreciation; don't insurance costs usually go down as your vehicle gets older anyway? So I'd have to reassess using that same formula a couple years down the road when the value drops again. However, in one year I'll be able to register it as a classic vehicle since it's 20 years old (I think?). That usually means no registration/tab renewal costs, or lowered. So I guess that would be a factor as well.

Head spinning, but for now it's cleared up. Leaving it fully insured. If I can't afford the extra $40 a month then I have no business owning two cars, let alone a brand new one, right?

I'm going to celebrate by taking her to play in the blizzard later today to get to a concert

It looks actually too deep for the Golf R with the Blizzaks to handle.

 

[jwkilgore]

Classic/antique/collector registration laws vary significantly by state. I think 20 years is right for some states, but others make you wait longer. You'll have to contact your local DMV.