Common sense liability insurance

[mrriggs]

Have you ever wondered why you have to buy liability insurance for each car you own? After all, it's the driver that is responsible for causing an accident, not the car. Plus, you can only drive one car at a time. Wouldn't it make more sense to insure the driver? Well, in the state of Washington, you can do that.

I only had one car because I couldn't afford to insure more than one. I got a great deal on a van and decided to see what insurance options are available. Turns out there is something they refer to as "broad form" insurance. It only costs a little more than what I was paying for a single vehicle and now I am insured for every car I drive, even if it's not mine.

Don't expect any insurance guys to offer this as an option. You need to ask for it specifically. I ended up switching insurance agents because my guy kept dancing around and side-stepping my inquiries even though he said his company did offer it.

The only downside I can see is that it may encourage my old junk car junkie habits and I'll end up with a fleet of beaters. Oh well, that sounds like a problem for my neighbors to deal with.

[Gemini1999]

It's basically called a "named non-owner" policy. It's actually intended for someone that doesn't own a car. The only reason the agent danced around it is because, if you own a vehicle and you disclose that fact, ethically, they can't sell it to you. In states where car insurance is mandatory, such a policy won't meet state requirements to register the vehicle, because state laws mandate that each vehicle registered, must be insured.

[mrriggs]

From the Washington state DOL RCW 46.30.020 (1)(a) No person may operate a motor vehicle subject to registration under chapter 46.16A RCW in this state unless the person is insured under a motor vehicle liability policy...

[Gemini1999]

From the Washington state DOL RCW 46.30.020 (1)(a) No person may operate a motor vehicle subject to registration under chapter 46.16A RCW in this state unless the person is insured under a motor vehicle liability policy...

Yes...what they're saying is that the proof of registration shows that the registered owner is insured to drive that particular vehicle. You qualify for self insurance on my if you own more than 26 vehicles:

http://www.dol.wa.gov/driverslicense/insurance.html

[mrriggs]

It's basically called a "named non-owner" policy. It's actually intended for someone that doesn't own a car.

They call it a "named operator" policy and it states pretty clearly that it covers me when operating vehicles that I own. It goes on to say that I can not allow anyone to drive one of my vehicles unless they have their own operator coverage.

[Matt J]

Just be careful that you have coverage for everything you need. These kinds of policies aren't really intended for a private person to use on their own car. What that means to you is that you need to read those exclusions very carefully and be sure that you don't have limits to how many days per year or days in a row that the car can be in your possession, stuff like that. Also things like uninsured motorist coverage or underinsured coverage is a big deal if you need it, not sure if you have that, plus coverage that might extend to you or passengers while riding in the car. That stipulation that nobody else can drive the car is a biggie too, that means if someone else causes a wreck in your car, you have no protection from that policy.

Most traditional policies offer substantial discounts for low mileage use, and multiple cars that results when you have more cars than drivers in a household. But a benefit is that those policies also "stack" in many states (some of the coverages that you have on each car add up together to form a bigger limit) in case you get really hurt, as in uninsured motorist coverage. They extend to rental cars and "borrowed" cars, you being a passenger in another car, stuff like that.

Hey, you might have found the magic policy that works for you, just be careful with what you have. Insurance tends to be one of those deals that you get what you pay for, cheaper coverage is almost always less coverage. Nobody likes paying for insurance, but really appreciate having enough if it when they need it! If you have an agent or friend in the industry that you trust and they recommend it to you, then good deal!

[homer302]

I am confused. Obviously as you stated, you have an "old van" not a Fox mustang so it's not a collector vehicle. I get that part. But do you have a terrible driving record or something? I have a 5.0 1994 Mustang (23 year old, similar to your van I would assume) that is not collectible whatsoever. It's a daily beater. I just have regular State Farm FULL COVERAGE insurance on it. Not this really cool insurance that doesn't cover my car at all. The cost? $216 a year. That's $18 a month. Again, that is FULL coverage collision. Liability would likely be close to half that. How cheap exactly was this insurance you got? I don't see the advantage yet.

[mrriggs]

Good points. This kind of policy definitely isn't for everyone but it's a good fit for my situation. There is zero comprehensive or collision coverage but the van I just picked up for $400 is the nicest car I've ever owned so I'm not too worried about that.

[mrriggs]

I just have regular State Farm FULL COVERAGE insurance on it. Not this really cool insurance that doesn't cover my car at all. The cost? $216 a year. That's $18 a month. Again, that is FULL coverage collision. Liability would likely be close to half that. How cheap exactly was this insurance you got? I don't see the advantage yet.

I had State Farm for just liability on my LTD and it was considerably more than what you are paying for full coverage. I have an impeccable driving record and they gave me a "discount" because I also have my home, life, and motorcycle insurance through them. If my guy gave me a deal like you have then I wouldn't have shopped around for something better.

[homer302]

Okay. I know every state and person is different. There is a lot of optional stuff they just add on without asking unless you tell them you don't want it. The standard deductible is probably 0 unless you say no. I have whatever the highest that State Farm allows. You aren't required to have towing or roadside assistance but they always put it on there. I don't have any of it.

[Matt J]

For the OP, something else to consider is the impact to the price of the other policies in your household when you cancel the auto. For instance, some companies give a substantial (and I mean BIG) discount on your homeowner's insurance if you also insure your car. To be honest, it makes it confusing when buying one policy discounts another because you don't see the total amount of money you're saving. Rates vary from state to state, and from area to area; it makes sense that if you live in the city vs the country, the rates will be different, for example. These days credit scores and other factors come into play when figuring your price too. Mostly it has to do with the miles you put on the car, but there are other factors too. I know, it's confusing...

[sowaxeman]

Another important factor to consider is what is the Liability LIMIT that this policy will cover? Lets say it is $25 or $35k, and you cause a wreck with a VERY expensive car, or you cause a wreck with some serious injury and hospital bills for the victim. This could really wreak havoc on your future.

[hopeto]

Just an FYI: Policy Liability limits (depending on the state) can be stated normally in 2 different ways.
1. Combined Single Limits, AKA CSL, will be listed as one number and it doesn't matter if it's Bodily Injury or Property Damage. Common Examples would be $100K, $300K or $500K. The policy wouldn't pay out more than the CSL $# no matter whether Bodily Injury (BI) or Property Damage (PD).
2. If you see it written with 3 numbers such as 50/100/50 then the first number would be $50K limit bodily injury per person. Then middle number is $100K Bodily Injury limit per incident (during the same wreck you injured 2 or more people). The last number is a limit of $50K for property damage (car, cars, buildings, fire hydrants, etc.) that you damage. Other common examples are 30/60/25. 100/300/100, etc. Hope this helps.

[rodster]

I am confused. Obviously as you stated, you have an "old van" not a Fox mustang so it's not a collector vehicle. I get that part. But do you have a terrible driving record or something? I have a 5.0 1994 Mustang (23 year old, similar to your van I would assume) that is not collectible whatsoever. It's a daily beater. I just have regular State Farm FULL COVERAGE insurance on it. Not this really cool insurance that doesn't cover my car at all. The cost? $216 a year. That's $18 a month. Again, that is FULL coverage collision. Liability would likely be close to half that. How cheap exactly was this insurance you got? I don't see the advantage yet.

Sounds like you are getting a great deal from State Farm.

I have a 97 F150 and pay $314 a year with 500 deductible collision. Liability alone is $130 a year.

And yes I agree with the OP, owning multiple cars, why do I pay liability on a car sitting in the garage? Is it going to sneak off and cause trouble?

[brianj]

New Hampshire has no requirement for insurance. I had a 1989 Chevy Beretta, well over 10 years old at the time. Since I was under 26 and single, liability insurance alone was $2600 a year, on a car I paid $3500 for. I had, and still have, no tickets or accidents. More than slightly ridiculous.

[homer302]

New Hampshire has no requirement for insurance. I had a 1989 Chevy Beretta, well over 10 years old at the time. Since I was under 26 and single, liability insurance alone was $2600 a year, on a car I paid $3500 for. I had, and still have, no tickets or accidents. More than slightly ridiculous.

Ohh my goodness. That is insane! My insurance wasn't that high when I was 16 and driving a 3 year old 5.0 GT. I was living at home (again, I was 16) so I guess that made it lower probably due to my parents insuring other cars at the time.

[vintageracer]

Insurance is for people that have something to lose.

If you don't own anything why buy insurance?

They can sue you however you have nothing to take right?

WRONG!

You have your future income and earning ability which is your BIGGEST ASSET! Get a judgement against your income and you will be significantly affected! Just ask someone who currently gets their paycheck GARNISHED each and every week!

In most instances liability insurance alone is CHEAP! As noted above one poster says $130/year for liability coverage. They did not state the limits. You know what a crappy driver you really are. Why would YOU accept the possibility of a lawsuit or a judgement when for $130/year in this example YOU to can have peace of mind that you care about yourself AND the person YOU injure and their property that YOU damage!