Insurance for a new vehicle

[apkking]

I have always driven old cars and always went with just 3rd party insurance. Now in the process of buying a new vehicle.

Regarding the insurance, Is it a good idea to get comprehensive as well as collision insurance for the new Vehicle ? what type of insurance is good for a brand new vehicle ?

Is those coverage worth the premiums ? Is the insurance companies walkaway using some loophole when you make a claim ?

Thank you for your advice.

[tonytiger55]

Pm MaskedBandit/ Touchstone Insurance. Forum Sponsor.

He did a excellent job of explaining the insurance stuff to me.

80995

[ExtraSlow]

Comprehensive is very cheap and a good value in my opinion based on likelihood of a hail claim alone.

[zhao]

comprehensive = theft, hail, deer hit, vandalism, fire, explosions, flood damage, etc.

collision = hit and run, you smash in to someone and are at fault, someone smashes in to you and has no insurance.

3rd party liability = you hit someone and damage their vehicle. your vehicle falls on someone and injures them and you get sued.

With a new car that is financed you will have to get all of that unless the financing company is on crack.

additions you may want to consider since its a new car:

- accident forgiveness. usually 7 years accident free = u get one free at fault accident that doesn't affect your rates for paying extra per month
- loss of use. gives u a rental car if you have to make a claim. any decent accident that makes your vehicle non drive will take a month + to fix, unless you go to maaco. do not go to maaco. if your car is stolen it can take 1-2 months to sort things out easily.
- your insurance transfers to a rental car if you rent a car. good for trips. if you travel a lot this saves you money buying the rental car company's $$$ insurance. this will usually be packaged with something else, like in the case of TD it gives you no deductible for hit and runs if you make a claim/police report in 24 hours.
- new car replacement cost. varies by insurance company, could be as long as 5 years, but if your car is in an accident and deemed not repairable, they pay you out the replacement cost of it. I just wrote a friends 4.999 year old audi a4 off that she couldn't sell for 23g, she had this on her policy and they called up audi, priced out a new one, and cut her a check for 53g.

also, imo you want the lowest deductibles possible as goign iwth high deductibles saves you almost nothing. if you want to save money get a 13D which removes glass coverage (but not entirely), as this is alberta and you can usually get a windshield for 150-250, whereas your lowest deductible is that making the coverage useless for many vehicles (you want this coverage on most infinitis, as their winshields are $1500ish).

you also want rental coverage IMO. The first time you make a claim and are without a car for a month you will realize how retarded it was to save $2 a month by not having loss of use coverage. rentals are $50 a day + usually.

[spikerS]

comprehensive = theft, hail, deer hit, vandalism, fire, explosions, flood damage, etc.

collision = hit and run, you smash in to someone and are at fault, someone smashes in to you and has no insurance.

3rd party liability = you hit someone and damage their vehicle. your vehicle falls on someone and injures them and you get sued.

With a new car that is financed you will have to get all of that unless the financing company is on crack.

additions you may want to consider since its a new car:

- accident forgiveness. usually 7 years accident free = u get one free at fault accident that doesn't affect your rates for paying extra per month
- loss of use. gives u a rental car if you have to make a claim. any decent accident that makes your vehicle non drive will take a month + to fix, unless you go to maaco. do not go to maaco. if your car is stolen it can take 1-2 months to sort things out easily.
- your insurance transfers to a rental car if you rent a car. good for trips. if you travel a lot this saves you money buying the rental car company's $$$ insurance. this will usually be packaged with something else, like in the case of TD it gives you no deductible for hit and runs if you make a claim/police report in 24 hours.
- new car replacement cost. varies by insurance company, could be as long as 5 years, but if your car is in an accident and deemed not repairable, they pay you out the replacement cost of it. I just wrote a friends 4.999 year old audi a4 off that she couldn't sell for 23g, she had this on her policy and they called up audi, priced out a new one, and cut her a check for 53g.

also, imo you want the lowest deductibles possible as goign iwth high deductibles saves you almost nothing. if you want to save money get a 13D which removes glass coverage (but not entirely), as this is alberta and you can usually get a windshield for 150-250, whereas your lowest deductible is that making the coverage useless for many vehicles (you want this coverage on most infinitis, as their winshields are $1500ish).

you also want rental coverage IMO. The first time you make a claim and are without a car for a month you will realize how retarded it was to save $2 a month by not having loss of use coverage. rentals are $50 a day + usually.

I have all that, for 2 new vehicles. I pay $207 a month, and that includes my house insurance through Masked Bandit (Bill) @ Touchstone insurance with a $250 deductible (iirc, might be $500) and Bill has permission to correct me publicly on here if I am wrong.

Quick ninja edit* Yes, with your insurance transferring to a rental car, if you are in an accident, it counts as a claim against you, where if you take the rental companies insurance on the rental car, you just pay the deductible and walk away, and is not a hit on your insurance claim record.

[ShermanEF9]

edit: already mentioned.