Yes, each state sets the minimum limits, but one can purchase more. Since I work in the industry, I’ll avoid stating what I feel about those minimum limits.
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Want to buy a Model 3, insurance is crazy expensive
- Thread starter cerealzealot
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Yes. Most people carry much higher limits since the rate increase is pretty minimal. I usually carry 250K limits and pay $91/month in NJ (45 male).
Absolutely, yes.
What I didn't show is that I also carry an additional $2 million "umbrella" liability policy over all of my insurance. It's very cheap ($125/year or so) but protects one's assets.
Yes, each state sets the minimum limits, but one can purchase more. Since I work in the industry, I’ll avoid stating what I feel about those minimum limits.
Over here in Sweden we do not really choose limits, they are set by the insurance companies to cover whatever might be necessary. Standard is they cover up to around $30 million per accident and the policy holder cannot be liable for anything over that amount.
250K seems low as well, couldn’t that be reached just by hitting someone badly?
Ahh, okay that makes more sense even though I guess people can get screwed over if they lack the liability policy. But even at $2 million what would happen if you hit and total a rare car valued at say $5 million and was found at fault?
I know when I was growing up, some Auto Insurance companies provided steep discounts if you completed a valid driving school. I would ask the insurance companies if they do anything like that. It may cost some money up front but you could save a lot over time. Mine was an assertive driving school.
Contact your current insurance company. The big auto/home insurance companies will offer umbrella policies also. And yes, they are cheap under most situations.
That's not necessarily accurate. Liability & under/un-insured coverage is the larger portion of my premium, and that really doesn't depend at all on the value of my Model 3. (Which, BTW, is much closer to the $60k than the $35k model.)
The only time vehicle value comes into play is for collision & comprehensive coverage, and even then, it's a fairly small piece of the complex rating.
Umbrella insurance is available via your carrier - just call and ask about it.
So let's break that down ...
- The owner of the $5m car would file a claim under their own insurance.
- Their insurance would then subrogate my insurance.
- The lawyers would kick each other in the shins until they come to a settlement.
- It's possible I could get sued for the balance, but, as it's in their interest to not pay out $2.5m (my policy limit + umbrella) - my insurance company's lawyers would be fighting hard to prove the $5m vehicle isn't really worth $5m at all. Or that it can be repaired for significantly less than that. Or that there's some issue with the title chain... or any one of a million ways to get out of making it the primary carriers' problem.
The likelihood of this scenario is infinitesimally small. My odds of getting struck by lightning, twice, while holding a winning lottery ticket are probably quite a bit greater.
Insurance isn't about "cover all costs" but about risk mitigation. You cover the likely scenarios, and even some of the unlikely ones.
Worst case in the above, I declare bankruptcy, protect my home and retirement assets, and enter a settlement agreement to pay the balance off over the next 216 years, $10 at a time.
If I know correctly, umbrella policies requires rather higher than average coverages on your auto and home insurance (250k/500k auto coverage, etc), is that correct?
Yes. Although 500 and 1 Million CSL (combined Single Limits) would also qualify.
Yes. See my post above (this one: #30) for what my current policy limits are. It's a very minor bump in the premium; again, I'm paying $70.50/month to insure my Model 3.
Inssurance isn't about risk mitigation but about asset protection. If you are at fault for driving into a car full of brain surgeon students who where on their way for their, and they get hurt so badly that they cannot work, then you better be insured properly.
No, if you have no assets they cannot take more than what is insured. But if you live in a nice mansion and have a couple of thousand TSLA stock, for instance, they will go after it -- especially if you had the option to get better insurance but decided not to take it. And rightly so in my opinion.
Oops! I don’t know how that got posted! That was a draft I started to write. I was going to finish saying don’t carry full coverage (comprehensive, uninsured, etc) to reduce the cost at the risk of something happening if someone uninsured hit you. BUT then I got to thinking and it probably wouldn’t save that much if the rates are high based on him not having a driving history.
it is possible and completely legal to have a surety bond in lieu of an auto insurance policy. But yes, you do need something.
JPWhite
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I guess you must not be Puerto Rican because they find prices here to be quite reasonable:
I like to be in America
Okay by me in America
Everything free in America
For a small fee in America
It's crazy
Progressive is $288/month with the lowest coverage ($15K/$30K/$5K).
25 years old single male in Los Angeles, never insured before, $288/month for a Tesla Model 3 sounds about right.
Try Wawanesa as well, they are based in San Diego and I use them. They are cheaper than Tesla ins. if you have clean history.
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