E90Post
 


Studio RSR
 
BMW 3-Series (E90 E92) Forum > BIMMERPOST Universal Forums > Off-Topic Discussions Board > How does car insurance work?



Reply
 
Thread Tools Search this Thread
      10-17-2014, 10:39 AM   #1
kyoko
Private First Class
kyoko's Avatar
42
Rep
140
Posts

Drives: F80, G01
Join Date: Jan 2006
Location: Raleigh

iTrader: (0)

Garage List
2017 BMW M3  [0.00]
2018 X3 M40i  [0.00]
How does car insurance work?

So say you got into an accident and your car is totaled. Does the insurance company just pay out the current value of your car and you go about getting another car?

Does anything differ if it's your fault vs theirs?
Appreciate 0
      10-17-2014, 10:47 AM   #2
kscarrol
Brigadier General
kscarrol's Avatar
United_States
8800
Rep
4,105
Posts

Drives: 2021 X3 M40i, 1974 2002 Tii
Join Date: Jun 2010
Location: Greenville, SC

iTrader: (0)

As with most insurance threads, the actual outcome will depend on your individual policy....

But in general, yes if the car is totaled (no matter who is at fault), you will get paid the current, depreciated value of the car. Who's insurance company pays depends on whose at fault and other factors. If the accident is your fault then your rates are likely going up or you could be dropped.

You can do what you want with the proceeds but if you owe money on the car, you've got to repay the finance company first. Frankly if there is a lean on the car (outstanding loan), the check will be sent to the finance company and anything left is yours to apply to a new car.

Not an expert at leasing but same basic principle applies. Proceeds first go to BMW Finance (or which ever leasing company used) to make them whole...
__________________
2021 X3 M40i
1974 2002tii, Inka, 5 sp manual
BMWCCA # 327475
Appreciate 0
      10-17-2014, 11:28 AM   #3
DSB335d
Captain
1321
Rep
700
Posts

Drives: '11 335d DSB/oyster&black/navi
Join Date: Dec 2011
Location: West palm beach

iTrader: (0)

To add to the above, most lenders offer GAP insurance. If you are leasing/buying and you haven't paid your loan off yet, GAP insurance covers you. You aren't left with a car note in hand on something you can no longer use in the event of vehicle being totaled.
Appreciate 0
      10-17-2014, 11:32 AM   #4
TXSTYLE
"Salud"
TXSTYLE's Avatar
United_States
13654
Rep
4,663
Posts

Drives: F01 & F15 / Mineral White
Join Date: May 2013
Location: The GYM! (The Burbs - N TX)

iTrader: (0)

How does it work? Simple... They F*** us out of hundreds of millions in annual revenue knowing 75% of us will NEVER file a claim. CHA-CHING$$$!!!
__________________
https://i.imgur.com/QAMZNzQ.jpg
Appreciate 0
      10-17-2014, 11:33 AM   #5
2011CrazE89
Moved on
2011CrazE89's Avatar
United_States
123
Rep
166
Posts

Drives: 2011 Z430i & 2015 MB C300
Join Date: Sep 2013
Location: South Florida

iTrader: (0)

It doesn't
Appreciate 0
      10-17-2014, 01:02 PM   #6
upstatedoc
I'll get back to you
upstatedoc's Avatar
7556
Rep
2,132
Posts

Drives: blue streak
Join Date: Dec 2009
Location: not downstate

iTrader: (2)

Get into accident, file claim, get paid?
__________________
2018 Stinger GT
2009 E90 N51 /Active Autowerke Stage 2 tune/BMW Performance Exhaust/
Countermeasure enthusiast.
Appreciate 0
      10-17-2014, 01:26 PM   #7
UncleWede
Long Time Admirer, First Time Owner
UncleWede's Avatar
United_States
17883
Rep
9,376
Posts

Drives: G01 X3 M40i Dark Graphite
Join Date: Jun 2005
Location: Oxnard, CA

iTrader: (0)

2/3 sons totaled their vehicles under my insurance. I can't let them use my vehicles any longer.

At the end of the day, they had to go buy themselves a new car, no insurance money in hand.
Appreciate 0
      10-17-2014, 01:53 PM   #8
MYovichZ4
Private First Class
MYovichZ4's Avatar
United_States
123
Rep
178
Posts

Drives: 2007 Z4 3.0i Roadster
Join Date: Jul 2014
Location: Western Burbs of Chicago

iTrader: (0)

Garage List
Quote:
Originally Posted by TXSTYLE View Post
How does it work? Simple... They F*** us out of hundreds of millions in annual revenue knowing 75% of us will NEVER file a claim. CHA-CHING$$$!!!
__________________

2007 BMW Z4 3.0i Roadster / Silver Grey
BMW CCA 492691
Appreciate 0
      10-17-2014, 06:31 PM   #9
jwzimm
Colonel
jwzimm's Avatar
United_States
687
Rep
2,770
Posts

Drives: '16 M3
Join Date: Jun 2011
Location: Renton, WA

iTrader: (17)

To clarify a bit. In the event of a total loss the insurance will determine the cost to replace your car with as close to an identical one as possible. This includes the costs of tax and title you would have to pay to buy the replacement. If you do not agree with their initial offer you can gather comparable listing for cars in your area and make a counteroffer as well.
__________________
2008 Honda S2000 - Current
2016 F80 M3 - SOLD!!
2011 e92 X-Drive Coupe - SOLD!!
Appreciate 0
      10-17-2014, 10:13 PM   #10
kyoko
Private First Class
kyoko's Avatar
42
Rep
140
Posts

Drives: F80, G01
Join Date: Jan 2006
Location: Raleigh

iTrader: (0)

Garage List
2017 BMW M3  [0.00]
2018 X3 M40i  [0.00]
Thanks for the info. I haven't gotten into an accident in all my years of driving, but someone turned left to cross the road and didn't look. I had to slam on the brakes to not t-bone her and then I just started to wonder...

Never had to deal with it so just curious.
Appreciate 0
      10-17-2014, 10:25 PM   #11
M_Six
Free Thinker
M_Six's Avatar
United_States
16555
Rep
7,447
Posts

Drives: 2016 MB GLC300 4matic
Join Date: Jan 2009
Location: Foothills of Mt Level

iTrader: (0)

Quote:
Originally Posted by TXSTYLE View Post
How does it work? Simple... They F*** us out of hundreds of millions in annual revenue knowing 75% of us will NEVER file a claim. CHA-CHING$$$!!!
This. And if you do file a claim, your rates go up enough for them to get their money back. My Dad drove 62 years with no accidents or moving violations. A perfect record. He was a professional truck driver for many of those years. He still had to pay an obscene amount for insurance every year. Ridiculous.
__________________
Mark
markj.pics

"There is no shame in dropping fruit in your glass."
-UncleWede
Appreciate 0
      10-17-2014, 11:25 PM   #12
TXSTYLE
"Salud"
TXSTYLE's Avatar
United_States
13654
Rep
4,663
Posts

Drives: F01 & F15 / Mineral White
Join Date: May 2013
Location: The GYM! (The Burbs - N TX)

iTrader: (0)

Quote:
Originally Posted by M_Six View Post
This. And if you do file a claim, your rates go up enough for them to get their money back. My Dad drove 62 years with no accidents or moving violations. A perfect record. He was a professional truck driver for many of those years. He still had to pay an obscene amount for insurance every year. Ridiculous.
Yes sounds about right.
Appreciate 0
      10-18-2014, 08:20 AM   #13
Taskmaster
Banned
Japan
2463
Rep
9,004
Posts

Drives: M235i 6MT / E92 328 Msport 6MT
Join Date: Nov 2013
Location: Florida

iTrader: (6)

Quote:
Originally Posted by TXSTYLE View Post
Yes sounds about right.
Depends on location. Long term customers also will have accident forgiveness to prevent rate hikes.
Appreciate 0
      10-18-2014, 10:04 AM   #14
bbbbmw
Major General
2394
Rep
6,083
Posts

Drives: 135i
Join Date: Nov 2012
Location: Southwest

iTrader: (0)

I have found that you can save money if you shop around every few years - I think (but am not certain) that insurers start to hike up your policy price slowly after a couple of years - even without a claim. That said, you have to make sure and get a company that will treat you well if you have a claim - many do not.
__________________
<OO (llll)(llll) OO>
Appreciate 0
      10-18-2014, 10:51 AM   #15
upstatedoc
I'll get back to you
upstatedoc's Avatar
7556
Rep
2,132
Posts

Drives: blue streak
Join Date: Dec 2009
Location: not downstate

iTrader: (2)

Quote:
Originally Posted by bbbbmw View Post
I have found that you can save money if you shop around every few years - I think (but am not certain) that insurers start to hike up your policy price slowly after a couple of years - even without a claim. That said, you have to make sure and get a company that will treat you well if you have a claim - many do not.
+1
We had travelers for years and noticed our premium doing the slow creep. Found another company for hundreds less with same coverage. The day I cancelled my old agent called me back immediately and offered a lower premium. Sorry, that's what you get for screwing people.
__________________
2018 Stinger GT
2009 E90 N51 /Active Autowerke Stage 2 tune/BMW Performance Exhaust/
Countermeasure enthusiast.
Appreciate 0
      10-18-2014, 10:56 AM   #16
M_Six
Free Thinker
M_Six's Avatar
United_States
16555
Rep
7,447
Posts

Drives: 2016 MB GLC300 4matic
Join Date: Jan 2009
Location: Foothills of Mt Level

iTrader: (0)

Quote:
Originally Posted by bbbbmw View Post
I have found that you can save money if you shop around every few years - I think (but am not certain) that insurers start to hike up your policy price slowly after a couple of years - even without a claim. That said, you have to make sure and get a company that will treat you well if you have a claim - many do not.
We've changed companies a couple of times to reduce our rates. Here in IL when you start in with a new insurance company, your previous record is irrelevant to them. I got nailed by a retread when I was with my first company (State Farm). They raised my deductible after that claim, so we moved to AAA and our rates went down considerably with no hike in deductibles. They Wifey got hit in the parking lot where she works. IL law says all parking lot accidents are 50/50, so her rates went up. We jumped again to Geico and we're back down where we were when we started with AAA. When I told my AAA agent to cancel the policy because I moved to Geico, he told me it was a good move and that after 6 months Wifey's accident would be off her record and we could come back to AAA. He promised me he could beat our Geico rate.

Seems more and more like a scam to me. They charge you what they think they can get away with.

That said, insurance here in downstate IL is way, way cheaper than it was in MA. I pay less than $900/yr for full coverage and 100/300 limits with tiny deductibles on 2 cars.
__________________
Mark
markj.pics

"There is no shame in dropping fruit in your glass."
-UncleWede
Appreciate 0
      10-19-2014, 09:37 PM   #17
Ben2k9
Second Lieutenant
32
Rep
258
Posts

Drives: 2011 BMW 550i M-Sport
Join Date: Jan 2014
Location: Nashville, TN

iTrader: (1)

Quote:
Originally Posted by TXSTYLE View Post
How does it work? Simple... They F*** us out of hundreds of millions in annual revenue knowing 75% of us will NEVER file a claim. CHA-CHING$$$!!!
seems to me like they are making a reasonable profit by providing an essential service. Without insurance, hardly anyone would own BMWs nor live in anything much fancier than a mud shack, since the financial loss from an accident would be too catastrophic.

Insurance is the glue that holds the world as you know it together. If you think they are too profitable you can always invest in the company as a shareholder to benefit there.
Appreciate 0
      10-19-2014, 09:52 PM   #18
TXSTYLE
"Salud"
TXSTYLE's Avatar
United_States
13654
Rep
4,663
Posts

Drives: F01 & F15 / Mineral White
Join Date: May 2013
Location: The GYM! (The Burbs - N TX)

iTrader: (0)

Quote:
Originally Posted by Ben2k9 View Post
seems to me like they are making a reasonable profit by providing an essential service. Without insurance, hardly anyone would own BMWs nor live in anything much fancier than a mud shack, since the financial loss from an accident would be too catastrophic.

Insurance is the glue that holds the world as you know it together. If you think they are too profitable you can always invest in the company as a shareholder to benefit there.
Keep telling yourself that. For those of us like myself who average 4-5k miles of diving and have no accidents in over 2 decades of driving, and have the means to pay cash for repairs or buy another car if the one I'm driving breaks... No I don't empathize with big insurance one bit. I've earned the right to drive insurance free and have them pay for any liability or repairs that may or may not ever happen.
Which insurance company you work for by the way?
Appreciate 0
      10-20-2014, 08:43 PM   #19
dtwyim
Captain
dtwyim's Avatar
Canada
52
Rep
874
Posts

Drives: BMW no more
Join Date: Oct 2010
Location: Canada

iTrader: (0)

Insurance companies...make $...off the drivers...by paying some claims out....that is less than premiums collected.
Appreciate 0
      10-20-2014, 08:53 PM   #20
ddk632
Chief Senior Executive Managing VP of Orange Sales
ddk632's Avatar
United_States
583
Rep
2,581
Posts

Drives: 17 BMW F87 M2 6MT MG HBDGR !
Join Date: Mar 2012
Location: Aventura, FL

iTrader: (2)

After dealing with the scam which is Florida home insurance, I have no complaints about car insurance, ever again.
Appreciate 0
      10-20-2014, 09:22 PM   #21
M_Six
Free Thinker
M_Six's Avatar
United_States
16555
Rep
7,447
Posts

Drives: 2016 MB GLC300 4matic
Join Date: Jan 2009
Location: Foothills of Mt Level

iTrader: (0)

I'm not sure if it still works this way, but back in the 80's when I was in Germany the German system had new drivers paying a king's ransom for insurance and as you drove more and more years accident free, your rates dwindled away to practically nothing. That's the way it should be. New and/or bad drivers pay more, good drivers pay less. It's sort of that way in some states with surcharges, but those don't really benefit the good drivers. They just penalize the bad ones.
__________________
Mark
markj.pics

"There is no shame in dropping fruit in your glass."
-UncleWede
Appreciate 0
      10-20-2014, 11:16 PM   #22
TXSTYLE
"Salud"
TXSTYLE's Avatar
United_States
13654
Rep
4,663
Posts

Drives: F01 & F15 / Mineral White
Join Date: May 2013
Location: The GYM! (The Burbs - N TX)

iTrader: (0)

Quote:
Originally Posted by M_Six View Post
I'm not sure if it still works this way, but back in the 80's when I was in Germany the German system had new drivers paying a king's ransom for insurance and as you drove more and more years accident free, your rates dwindled away to practically nothing. That's the way it should be. New and/or bad drivers pay more, good drivers pay less. It's sort of that way in some states with surcharges, but those don't really benefit the good drivers. They just penalize the bad ones.
That's how it should be! I don't mind paying say $25 a month. But I've paid these shysters by my estimates over $50,000 over the years! Think I've had them replace a bumper and maybe a couple windows in that time.
Look, it doesn't take a genius to realize the sheer $$$$$ ALL insurance companies make. If you've even dabled in finance/investments, you know how rock solid investing in insurance is. That shit is automatic like a money printing machine.
Appreciate 0
Reply

Bookmarks

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off



All times are GMT -5. The time now is 03:55 AM.




e90post
Powered by vBulletin® Version 3.8.11
Copyright ©2000 - 2024, vBulletin Solutions Inc.
1Addicts.com, BIMMERPOST.com, E90Post.com, F30Post.com, M3Post.com, ZPost.com, 5Post.com, 6Post.com, 7Post.com, XBimmers.com logo and trademark are properties of BIMMERPOST