Comment on Would a insanely ridiculously expensive car be able to affect everyone's premiums?
unitedwithme@lemmy.today 3 days ago
Pretty much, for ultra expensive cars, you get special insurers to cover them. Hagerty comes to mind and is one who specializes in autos with collectible cars especially.
Some car insurance companies can refuse certain models or anything that surpasses a dollar value amount.
IAmNorRealTakeYourMeds@lemmy.world 3 days ago
But if someone else causes damage, isnt their insurance liable?
unitedwithme@lemmy.today 3 days ago
Yes, so whoever is at fault their liability pays out. The issue is too many people don’t know enough abort liability limits and their agent offices (if they have them) don’t educate them, so they buy state minimum for expensive cars!
If I drive a little Civic with IL state minimum liability of “$25k/50k/25k” that’s only $25k per person or a max of $50k max per accident, those are bodily injury limits. $25k for all property damage, which could be multiple cars and/or physical property.
Now, a note I’d like to add: you’ll also have uninsured motorist/underinsured motorist coverages, but those can’t be higher than your own liability limits, so if you drive a $100k car, you should be VERY worried about everyone else with state minimum coverage which only gives you 25k towards your property (car) repairs (FL I believe is sadly only $15k). Your underinsured coverage will kick in and cover the ‘up to’ 75k amount.
If you drive a $1m car, you’ll likely have a $250k/$500k/1m policy, which covers obviously higher bodily injury limits, but also your car’s value up to $1m. The reason I don’t list higher BI limits is usually at that point, people also have Umbrella liability policies which gives them $1-10m additional liability coverages for all their policies under that “umbrella”.
This is why I ALWAYS recommend reviewing your auto policies and try matching closely to your own values, to be properly insured. I would also suggest going with higher than 100k bodily injury liability limits. We all know how expensive ER visits can be (US), and if your policy hits the “limit”, you’re liable for everything over that. My dad’s car accident ER bill alone was over $250k. Not to mention ICU docs out of network, physical therapy, etc. It was a ~45mph t-bone collision. Their underinsured policy kicked in saving my parents well over $200k combined.
I hope this helps anyone reading it!