Welcome to City-Data.com Forum!
U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Automotive > Car Insurance
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 10-21-2023, 10:56 AM
 
6,339 posts, read 2,889,808 times
Reputation: 7273

Advertisements

In my state you have to tie up over 100K in a bond to avoid paying liability insurance so it's not worth it. But I looked at this list and see in some states the amount is very low.

https://www.nerdwallet.com/article/i...-car-insurance
Reply With Quote Quick reply to this message

 
Old 10-22-2023, 11:34 PM
 
Location: Phoenix, AZ
6,340 posts, read 4,892,353 times
Reputation: 17999
I spent 35 years in the insurance industry and never came across any individuals that self-insured by posting cash or bond with the state.

Big companies with big fleets can do it but they still buy insurance for catastrophic claims above a certain amount.

And before you rely on sites like nerdwallet that tell you nothing, I suggest you read the actual statutes that address self-insuring one's liability. It's not easy and it's not cheap. You're either putting up your cash or paying premiums for the bond anyway.

And if you do get sued all that money is going to pay lawyers before you even get to pay the claim and then you're up the creek.

The mindset that "Oh, I can do this or that and not have to pay for insurance is delusional."
Reply With Quote Quick reply to this message
 
Old 10-23-2023, 08:09 AM
 
14,400 posts, read 14,286,698 times
Reputation: 45726
Quote:
Originally Posted by adjusterjack View Post
I spent 35 years in the insurance industry and never came across any individuals that self-insured by posting cash or bond with the state.

Big companies with big fleets can do it but they still buy insurance for catastrophic claims above a certain amount.

And before you rely on sites like nerdwallet that tell you nothing, I suggest you read the actual statutes that address self-insuring one's liability. It's not easy and it's not cheap. You're either putting up your cash or paying premiums for the bond anyway.

And if you do get sued all that money is going to pay lawyers before you even get to pay the claim and then you're up the creek.

The mindset that "Oh, I can do this or that and not have to pay for insurance is delusional."
I have to second this. There is a reason why so many companies sell insurance and make a profit doing so. Its because in addition to there being a state law that you have to have car insurance, it serves a critical function in modern society. One seldom-mentioned reason for buying insurance is what is called "peace of mind". You want to be able to go to sleep at night knowing that if your car is destroyed or if someone sues you for injuring them in a car accident that you won't lose everything you have.

A bond on your car? Do you realize that most of these state statutes require you to designate someone to serve as a claims adjuster if a claim is brought against you? That person or company is going to expect monetary compensation for doing so.

All I can say is the notion of taking out a bond instead of buying insurance is truly a bad idea except for perhaps the most wealthy people. I bet even most of these folks choose to buy insurance anyway.
Reply With Quote Quick reply to this message
 
Old 10-23-2023, 08:48 AM
 
Location: East of Seattle since 1992, 615' Elevation, Zone 8b - originally from SF Bay Area
44,551 posts, read 81,085,957 times
Reputation: 57739
I wouldn't do it, especially if I were rich and could easily afford the bond. There are too many scammers, ambulance-chasing lawyers, and people just dying to take advantage out there. That $100,000 bond doesn't help much if you get sued for $1 million or more.
Reply With Quote Quick reply to this message
 
Old 10-23-2023, 09:20 AM
 
6,339 posts, read 2,889,808 times
Reputation: 7273
One time some jerk ran out in front of me in bumper to bumper traffic - drunk or on drugs probably. I slammed on the brakes and he jumped up in the air and landed on my hood. When I stopped he rolled off and onto the pavement. They took him to the hospital and my insurance called me and told me they were going to pay his bills. I said WFT?? - the incident was ALL HIS FAULT. I wanted to refuse to pay, but it wasn't up to me.
Reply With Quote Quick reply to this message
 
Old 10-23-2023, 09:46 AM
 
14,400 posts, read 14,286,698 times
Reputation: 45726
Quote:
Originally Posted by mascoma View Post
One time some jerk ran out in front of me in bumper to bumper traffic - drunk or on drugs probably. I slammed on the brakes and he jumped up in the air and landed on my hood. When I stopped he rolled off and onto the pavement. They took him to the hospital and my insurance called me and told me they were going to pay his bills. I said WFT?? - the incident was ALL HIS FAULT. I wanted to refuse to pay, but it wasn't up to me.
In states with no fault insurance the medical bills of even someone who runs in front of your vehicle are automatically covered--at least to a point. Here in Utah its up to $3,000.00. Some states go beyond that though. Plus, they are paid by the insurance on the car that struck the person.

You didn't say where this happened.

Generally, auto insurance policies have a provision that allows the insurance company control over whether a claim will be settled or not. I'm completely in favor of these provisions. Its the company's money and they have a right to decide how they want to spend it or not. If they choose not to settle a claim they may have to hire a lawyer to defend their insured. Its seldom simple.
Reply With Quote Quick reply to this message
 
Old 10-23-2023, 10:35 AM
 
6,339 posts, read 2,889,808 times
Reputation: 7273
Quote:
Originally Posted by markg91359 View Post
In states with no fault insurance the medical bills of even someone who runs in front of your vehicle are automatically covered--at least to a point. Here in Utah its up to $3,000.00. Some states go beyond that though. Plus, they are paid by the insurance on the car that struck the person.

You didn't say where this happened.

Generally, auto insurance policies have a provision that allows the insurance company control over whether a claim will be settled or not. I'm completely in favor of these provisions. Its the company's money and they have a right to decide how they want to spend it or not. If they choose not to settle a claim they may have to hire a lawyer to defend their insured. Its seldom simple.
My State is not no fault. I had plenty of witnesses. His insurance could have paid his bills and if he didn't have any insurance then I think we should bring back debtors prisons. My not? Then my insurence company sent me to s shop to fix the dent in my hood. I would have had to pay a $400 deductible because they wanted to replace the entire hood for the dent. NO freaking way I said. I was able to get a long pole into the hood and get most of the dent out myself.


Quote:
Originally Posted by markg91359 View Post
I have to second this. There is a reason why so many companies sell insurance and make a profit doing so. Its because in addition to there being a state law that you have to have car insurance, it serves a critical function in modern society. One seldom-mentioned reason for buying insurance is what is called "peace of mind". You want to be able to go to sleep at night knowing that if your car is destroyed or if someone sues you for injuring them in a car accident that you won't lose everything you have.
I have peace of mind - it's called savings. Index funds CDs and money market. Instead of paying for comprehensive coverage I put the money that would to to insurance into a money market and if I have an accident I use that money. The insurance companies make mosey by taking it from me and then giving less back when something happens. That's a scam as far as I'm concerned. If people are smart enough to live withing their means they won't need the insurance.
Reply With Quote Quick reply to this message
 
Old 10-23-2023, 11:14 AM
 
Location: Central Virginia
6,556 posts, read 8,381,935 times
Reputation: 18776
Quote:
Originally Posted by markg91359 View Post
I have to second this. There is a reason why so many companies sell insurance and make a profit doing so. Its because in addition to there being a state law that you have to have car insurance, it serves a critical function in modern society. One seldom-mentioned reason for buying insurance is what is called "peace of mind". You want to be able to go to sleep at night knowing that if your car is destroyed or if someone sues you for injuring them in a car accident that you won't lose everything you have.
Quote:
Originally Posted by mascoma View Post
I have peace of mind - it's called savings. Index funds CDs and money market. Instead of paying for comprehensive coverage I put the money that would to to insurance into a money market and if I have an accident I use that money. The insurance companies make mosey by taking it from me and then giving less back when something happens. That's a scam as far as I'm concerned. If people are smart enough to live withing their means they won't need the insurance.
You're risking the potential loss of your savings if you're sued though. That's not peace of mind.

I'd rather pay our insurance premium than to risk losing our life savings.
Reply With Quote Quick reply to this message
 
Old 10-23-2023, 11:26 AM
 
Location: Phoenix, AZ
6,340 posts, read 4,892,353 times
Reputation: 17999
Quote:
Originally Posted by HokieFan View Post
You're risking the potential loss of your savings if you're sued though. That's not peace of mind.
Comprehensive and collision involve damage or loss to one's own vehicle.

Has absolutely nothing to do with lawsuits.
Reply With Quote Quick reply to this message
 
Old 10-23-2023, 11:30 AM
 
50,716 posts, read 36,411,320 times
Reputation: 76519
Quote:
Originally Posted by mascoma View Post
My State is not no fault. I had plenty of witnesses. His insurance could have paid his bills and if he didn't have any insurance then I think we should bring back debtors prisons. My not? Then my insurence company sent me to s shop to fix the dent in my hood. I would have had to pay a $400 deductible because they wanted to replace the entire hood for the dent. NO freaking way I said. I was able to get a long pole into the hood and get most of the dent out myself.


I have peace of mind - it's called savings. Index funds CDs and money market. Instead of paying for comprehensive coverage I put the money that would to to insurance into a money market and if I have an accident I use that money. The insurance companies make mosey by taking it from me and then giving less back when something happens. That's a scam as far as I'm concerned. If people are smart enough to live withing their means they won't need the insurance.
But if you cause an accident with injuries, you could get sued for millions if you don't have insurance to pay it.
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:


Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Automotive > Car Insurance

All times are GMT -6.

© 2005-2024, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Contact Us - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37 - Top