Question regarding insurance

[thejavuar]

This may be in the wrong place, but I didn't see a better place for it. Sorry if it shouldn't be here.

I have 2 questions:

1. Does anybody have any experience with esurance.com?

Their rate is a LOT lower then my current rate and I am thinking of switching but was hoping to hear something about them first.

2. Is it worth buying "full coverage" on a 1998 pontiac grand prix that I intend to trade in within the next year?

I have always had liability but have wanted "full coverage" (Havent been able to afford it until now, didnt have the best record when I started driving). But when I talked with some people about it the added cost of the "full coverage" may seem to be not worth it. I also was thinking that it doesnt make sense to get low deductibles, just stick with something high because the car is likely to be a "total loss" in almost any sort of accident.

Any thoughts or opinions are appreciated. Thanks in advance.

['97ventureowner]

Welcome to AF!
Actually there is a good location for this thread. I am moving it to Car Insurance Q&A found in the Cars In General forum. This specific forum is visted by a lot of knowledgeable people on auto insurance.

[fredjacksonsan]

Thejavuar, Welcome to AF.

I used to work in car insurance, so hopefully the following will be helpful.

I don't know about esurance, although I've seen their ads. What you want to try to find out is how their claims service works (in case of an accident). Do they have their own claims representatives? Damage inspectors? Do they have a network of suggested body shops they work with or can you go to whichever one you want? All insurance is pretty much the same, until you have need to use it, then the customer service aspects come into play, and the difference between an easy repair or a pain in the ass can be astoundingly apparent.

As to "Full Coverage". There are 2 coverages that would factor in. The first is Collision, which is used to repair your car in the event of an accident, whether or not you are at fault. If the other person is without insurance, or it might take some time to resolve the claim, it's good to have this coverage.

The other coverage is Comprehensive. This will pay to have your car repaired if there is damage from a non-collision, like after a hailstorm, flooding, or other natural disaster (many companies also cover hitting a deer, for example, under Comp.)

The one concern is the age of your vehicle. If it's worth a few thousand, you may want to get the coverage, especially if you have a loan on it. That way you won't be out in the cold. Some companies suggest dropping Collision and Comprehensive if your vehicle is over 5 or 6 years old, for just the reason you mentioned - that it will be totalled in the event of an accident. BUT only if it's paid for. Otherwise you could be paying on a loan for a car that's sitting in a junkyard. [Often with older cars, the loan value is more than what the car is worth. If this is the case with yours, I'd suggest paying down the loan to less than what the car is worth as soon as you can.]

Now, deductibles. Higher will leave you paying less in premium, but more if there's an accident. One very strong rule of thumb here: only set your deductible as high as you can easily pay - immediately - if you have an accident. Any higher and you run the very, er, inconvenient risk of having your car sitting, repaired, at the body shop while you're using the footpad express and trying to scrape up enough money to pay the deductible to the mechanic.

Hope all that helps, let us know if you have any further questions.

[thejavuar]

Originally Posted by fredjacksonsan

Thejavuar, Welcome to AF.

I used to work in car insurance, so hopefully the following will be helpful.

I don't know about esurance, although I've seen their ads. What you want to try to find out is how their claims service works (in case of an accident). Do they have their own claims representatives? Damage inspectors? Do they have a network of suggested body shops they work with or can you go to whichever one you want? All insurance is pretty much the same, until you have need to use it, then the customer service aspects come into play, and the difference between an easy repair or a pain in the ass can be astoundingly apparent.

As to "Full Coverage". There are 2 coverages that would factor in. The first is Collision, which is used to repair your car in the event of an accident, whether or not you are at fault. If the other person is without insurance, or it might take some time to resolve the claim, it's good to have this coverage.

The other coverage is Comprehensive. This will pay to have your car repaired if there is damage from a non-collision, like after a hailstorm, flooding, or other natural disaster (many companies also cover hitting a deer, for example, under Comp.)

The one concern is the age of your vehicle. If it's worth a few thousand, you may want to get the coverage, especially if you have a loan on it. That way you won't be out in the cold. Some companies suggest dropping Collision and Comprehensive if your vehicle is over 5 or 6 years old, for just the reason you mentioned - that it will be totalled in the event of an accident. BUT only if it's paid for. Otherwise you could be paying on a loan for a car that's sitting in a junkyard. [Often with older cars, the loan value is more than what the car is worth. If this is the case with yours, I'd suggest paying down the loan to less than what the car is worth as soon as you can.]

Now, deductibles. Higher will leave you paying less in premium, but more if there's an accident. One very strong rule of thumb here: only set your deductible as high as you can easily pay - immediately - if you have an accident. Any higher and you run the very, er, inconvenient risk of having your car sitting, repaired, at the body shop while you're using the footpad express and trying to scrape up enough money to pay the deductible to the mechanic.

Hope all that helps, let us know if you have any further questions.

Thanks for the information. esurance is recommending that I do NOT get comp/collision insurance. However, on my first car (which was totalled when I rear-ended someone) I only had liability, and of course I got no money for the car. My car is only worth around $5000 (and it is totally paid for) which is why I was thinking of just getting high deductibles. My reasoning is that if I am in an accident in which the car will need to be fixed, the insurance company will more then likley declare it a total loss, so I would be wasting the additional money on the premium.

I don't know whether I should just have liablity, and I don't totally understand the reasoning behind the insurance company suggesting it.

The other consideration, is that in the next 6-18 months (I know wide range :P) I WILL be getting a new car.

[fredjacksonsan]

Ok, look at it this way:

Accident without Collision - your car is totalled, and the only way it'll be paid for will be if the other guy is at fault and has insurance.

Accident with Collision - your car is still totalled, but if you're at fault or the other guy didn't have insurance, you can have your car fixed, or at least get some money in your pocket.

Deductibles-

250 deductible, car totalled, you get 4750
1000 deductible, car totalled, you get 4000

What's the difference in premium? If it's only $100 or so, I'd consider the lower deductible. [Plus, if the car isn't totalled, you'll be les out of pocket to get it back repaired]