Well, it’s not just to repair your car (or the other guy’s car, depending on how it works in your state), but insurance also covers you liability if case you screw up. Did you run over a no-parking sign when you skidded off of the unplowed road? You owe the county $600 bucks to replace it, which your insurance will cover. Did you crash through someone’s front door? You’re liable for that. That’s why liability insurance is required in most states. PL-PD won’t fix your car if you screw up, but it’ll save you all of the other expenses that you caused.
When I look at my insurance bill, my collision and comprehensive coverage are each relatively small portions of my overall premium charges.
I’m 36, live in a rural area, have 2 cars (a 1998 and a 1991), a truck (1995), and a motorcycle (2006) and pay $1224 a year. The motorcycle alone is $328 a year on Progressive Insurance, the other 3 are on Erie Insurance for $896. Just one driver on my policies though. All my vehicles except the 1998 car are listed as pleasure vehicles, and my 1998 car is listed as having a ~12 mile commute. Part of how I keep my expenses low is high deductables and no collision coverage on any of the vehicles, IIRC.
Edit: Oh, and I have house insurance with Erie too, I think that gives a small additional discount. Plus they give discounts for having alarm systems, air bags, stuff like that. Basically make sure your agent is taking into account all the possible discounts you may be entitled to.
Oh, you have to carry liability, and lots of it. In most states the statutory minimums are ludicrous. Some require only $25,000 in personal injury coverage. When was the last time you heard of someone suing for $25,000? And you need coverage to reimburse you for devastating losses. I’m just saying that raising the deductable on your collision and comprehensive to the highest loss you can afford to suffer will, in the long run, have the best payback for the policy holder.
Everyone’s got anecdotes about someone who made out on their insurance, but I know someone who hit on 18 playing blackjack and drew a 3. It’s not that it never pays off, it’s just that it doesn’t pay off often enough to be worth the expense.
Not as bad you think. It’s true the “A” class shares are currently going for $108,000, the “B” class shares are “only” $3608. And GEICO doesn’t care what class of share you own.
$3608. And GEICO doesn’t care what class of share you own.