Insurance costs

[Telco]

when you're talking about a small cheap less than super safe car, the liability is the part thats gonna end up costing the insurance company in the long run...

say you have a brand new state of the art luxury car with 20 airbags that cost $50, you total it out but walk away with a slight bag burn on your face. the company cuts the check and you buy a new car. company is out $47k...

now you take that same accident but this time you're in a 96 neon, with one airbag, crumple zones the thickness of a popsicle stick, and no anti lock brakes... this this time the insurance company has to write a check to replace the $1300 car, but they also have to pay for a few hundred thousand dollars for medical bills and surgeries because you broke your legs and back...

Not exactly. If you are in said less than safe car with liability only, they cut a check to cover whoever you hit. To you, they say we're sorry for losing you as our customer, let us know if you get another car. Which is why it's weird that liability would be so high. Comprehensive, that's another story. That's the coverage where they pay for your car and your medical bills. I can understand a go cart having a high comprehensive bill, liability not so much except in the case of a car primarily driven by young people who just learned to drive and aren't good at dodging traffic.

 

[joegr]

I think that even liability only still covers your passengers' and your own bodily injuries in some states.

 

[Telco]

Interesting, did not know that. It's been so long since I've gone without full coverage and all.

 

[1LoudLS]

the most basic form of insurance (at least here) is PLPD (Personal Liability and Property Damage) the personal Liability part is the med coverage for all of the occupants of YOUR car the property damage is really only for out of state accidents to cover the other persons car if you were at fault. if it happens in our state, even if I run a red light and destroy your car, my insurance doesn't pay anything to repair/replace it, its all on your insurance. property damage also covers all buildings and other non vehicles (parks cars are also considered non vehicles) damaged in an accident.

 

[FDR]

That seems pretty backwards... Are you sure it isn't just that your insurance cuts a check for the not-fault insurance company, who then redirects the money to the driver?

How would the at-fault person pay back the damage? If say, an Allstate-insured driver is at fault for an accident with a Geico car, Geico will try and wring out the money from Allstate. Allstate pays Geico, Geico pays their driver, and Allstate raises the insurance of their driver to recoup the costs in the long term. Otherwise, all of the insurance companies would just kind of have good will between them that all of their costs should balance out proportionally

 

[1LoudLS]

not in a no fault state...

if there is an accident (with moving vehicles) in state, your insurance company only covers your car (if you have the right coverage ), it doesn't cover anything at all on their car*, that is totally for their insurance to cover regardless of who is at fault.

*with the exception of a mini tort claim, in which my insurance will pay/reimburse their deductible for them (if they even know that it can be claimed)


so lets say me and another car get in a accident, they are 100% at fault. if I only have PLPD (no collision coverage) then nobody pays to repair my car, I have to pay out of pocket to repair my car even if you hit me.



now if I'm at fault and hit a moving car in another state, then my insurance will pay for their damage in the end, now I couldn't tell you who my insurance actually writes the check to, but it really doesnt matter as in the end it goes to paying for the other cars repair...

i would however assume they would handle it exactly like they do for me, they dont write me a check for anything, they directly write a check to the shop that is doing the repair minus the amount of the deductible, then I pay the repair facility the amount of my deductable. or if the car is a total loss, then we both pay the bank instead of a repair facility.