Retiree Auto Insurance and Coverage?

[young707]

I am 65 and retiree in San Jose, California, and do not drive much any more. I have a 10+ year old family car for running local errant and grocery shopping etc.

I am currently using California AAA Auto Club car insurance. They are very expensive. I have no traffic accident or tickets for the last 30+ years and never have any violations.

What are the more competitive auto insurance companies I should consider? What kind of coverage should I consider?

Any info for us boomers are much appreciated. Thank you.

 

[xrac]

Contact a couple of local independent agents and ask for a quote. If the car is not very valuable consider not having collision or comprehensive.

 

[young707]

I tried a few online quotes - they have these available
GEICO, eSurance, State Farm, Progressive. Nationwide, etc.

What should I select on the coverage and liability area?
So I should not select collision or comprehensive, correct?

Thank you.

 

[Norwayguy]

How many different insurance forums do you plan to post the same question that an agent can answer for you with a simple phone call. Do yourself a favor and call a local agent it won't cost you anymore to use an agent.

I need to have a biopsy done of my liver can anyone tell me what size needle I should use?

I hope you catch the meaning.

 

[young707]

Well, I want to understand for retirees, is liability 50/100/25 good coverage in San Jose, California?

I always believe it is best to ask on abstract consumer choices, particularly like this auto insurance question that common folks do not know much, or see or use or learn from. But only need it badly probably once in a life time at the mercy of insurance policy in super fine prints.

So, J. D. Power ranking of insurance companies is a good track record for consumers to consider, right?

 

[moonlightandmargaritas]

Well, I want to understand for retirees, is liability 50/100/25 good coverage in San Jose, California?

Retiree has nothing to do with it. Do you have assets to protect?

50/100/25 is great until you get into an accident where a physician is killed, there is negligence on your part and his/her $85,000 Benz is totaled.

Even if he/she is not killed, who do you think is responsible for the difference between your $25,000 property damage liability limit, and the cost to replace his/her $85,000 Benz? That's right - it's YOU.

If they are killed, do you suppose their family will sue you for only your limit? Check out what some juries have considered reasonable "human life value" for highly paid professionals. Hint: it's a LOT more than your limit.

Maybe this scenario will never happen to you, but what if you miscalculate - and it (or something similar) does? Will your retirement be wiped out?

If you have few assets to protect, you probably don't have a problem. If you do, don't be a fool. Liability coverages are generally pretty inexpensive.

PS-J.D. Power rankings are worthless. They are purchased.

 

[Josh]

Well, I want to understand for retirees, is liability 50/100/25 good coverage in San Jose, California?

I always believe it is best to ask on abstract consumer choices, particularly like this auto insurance question that common folks do not know much, or see or use or learn from. But only need it badly probably once in a life time at the mercy of insurance policy in super fine prints.

So, J. D. Power ranking of insurance companies is a good track record for consumers to consider, right?

Retirees don't generally have anything particularly unique about their needs. 50/100/25 is negligent. Not everyone wants to go 250/500/100 with an umbrella, but for the price difference you should really go at least 100/300/100. Do you know what the coverage is? The short answer is that if you were to hit my car while I was on the way to the colo site with my servers your insurance would have to pay the max on the policy and you'd owe me out of pocket for the balance of everything over $25k. The cost of $100k of liability insurance is negligible.

When we're talking about the 50/100 it gets even worse. If I was pandering to the theory that retirees have special car insurance needs I'd make some comment about how you've saved up your money and you want to protect it, but most retirees haven't amassed much in assets and aren't that different from the general public where some have piles of money and most don't. That 50/100 is going to cover the medical expenses and lost wages of someone if you hit them. Frankly, if you hit the head cashier at wal-mart and they're out of work for a few months they're probably going to max out that $50k. You don't have to go all the way to $500k/$500k, but even 100/300/100 would be a noteworthy improvement over your current situation. You can get an umbrella policy to cover the liability above and beyond that, but I'm not sure what the umbrella would want the underlying limits to be. If you do fit in the category of having a considerable amount of assets then the cost of the higher liability limits on the auto plus the cost of the PUP (personal umbrella policy) doesn't really amount to much relative to what you're protecting.

The J. D. Power ranking probably means not much. The reality is that any of the major carriers all have to answer to regulatory agencies and courts and overall the industry does a great job of paying claims. Folks like to get worked up about how the insurance company denied their claims, but usually it's for good reason or a miscommunication. One of the biggest scams going in the insurance claims world is attorney's that take a third of the settlement because people get nervous waiting for the insurance company to process a claim so the attorneys basically get paid to hold the persons hand while they're waiting for the insurance company to pay the amount they were going to anyway.

Or so I've heard.

 

[AgentProvocateur]

Since you have a lot of questions, call several agents in your area, representing different companies, get their opinions about coverage, then decide on what you need. They can answer your questions, and talking to several agents can help you decide on the best advice. Once you know the coverage you need, its easier to shop with additional companies online.

The JD Power ratings are useful, but not a guarantee, or the definitive word on customer service.

You may also want to consider The Hartford, too, which offers an auto insurance program through AARP, if available in your state.

Some companies, selling direct without agents, may have a low price for you, but from the questions you ask, I think you would benefit from having an agent to help you.

 

[xrac]

If you have more than $300,000 in assests I wouldn't do less than 100/300/100 with a $1,000,000 liability umbrella.

 

[young707]

Some companies, selling direct without agents, may have a low price for you, but from the questions you ask, I think you would benefit from having an agent to help you.

Can you please tell me which are the better direct selling auto insurance companies for Northern California? Thank you.