Car Insurance

[Sunexim]

Hello Friends,

I have one car and now its time to renew my car insurance. Some people told me to go with 3rd party insurance and some suggest me to go with 1st party insurance.
But i have no knowledge about 1st and 3rd party insurance. Please let me know which one will be best for my car?

[FUNX650]

Insurance lingo in regards to "Party":

First Party... The person or Business that purchases insurance. The Policy Holder
-The first party buys the insurance to protect its assets in case of an accident

Second Party...Insurance Company that lets insurance policies
-Pays compensation to the policyholder for damages to their property that they have insured
-Pays compensation for damages or harm to another person or persons who become involved in an accident in which the policyholder had a part.


Third Party...(Known as liability insurance.)
Two types:
-Personal injury...Cost of medical bills and lost wages due to an accident to another person or persons.
-Property...Costs of damage done to another person or persons property during the course of an accident in which the policyholder had a part.

-Most States require licensed vehicle operators to carry liablity insurance.

-I hate having to pay Uninsured Motorists Insurance!!!

:)

Bob

[mwoolfso]

Hello Friends,

I have one car and now its time to renew my car insurance. Some people told me to go with 3rd party insurance and some suggest me to go with 1st party insurance.
But i have no knowledge about 1st and 3rd party insurance. Please let me know which one will be best for my car?

A long time ago I was told (and shown) how to get the largest amount of protection for your money. I have a personal umbrella policy for like $1.2MM (costs me ~200/yr), and then a medium-high deductible auto and home insurance policy. For my vehicles I have a $1K deductible and for home I think it is something like $3-7K.

The thought process is as follows:

1. If you are a "good boy" you would rarely, if ever, require the insurance.
2. And in those rare instances, the situation probably won't be a small matter.
3. The savings you get from a high-deductible auto and home policy essentially pay for most of the umbrella premium, so net is you get much more protection for almost the same amount of money.

In terms of performance I have had less than 2 years where the high-deductibles worked against me. The other 17 worked out well. As you can see I don't categorize 1st, 2nd and 3rd party..... way too insurance-technical for my blood.

I also use Liberty Mutual for all 3 policies and I get a larger discount from them for giving them all this business.

[FUNX650]

A long time ago I was told (and shown) how to get the largest amount of protection for your money. I have a personal umbrella policy for like $1.2MM (costs me ~200/yr), and then a medium-high deductible auto and home insurance policy. For my vehicles I have a $1K deductible and for home I think it is something like $3-7K.

The thought process is as follows:

1. If you are a "good boy" you would rarely, if ever, require the insurance.
2. And in those rare instances, the situation probably won't be a small matter.
3. The savings you get from a high-deductible auto and home policy essentially pay for most of the umbrella premium, so net is you get much more protection for almost the same amount of money.

In terms of performance I have had less than 2 years where the high-deductibles worked against me. The other 17 worked out well. As you can see I don't categorize 1st, 2nd and 3rd party..... way too insurance-technical for my blood.

I also use Liberty Mutual for all 3 policies and I get a larger discount from them for giving them all this business.

I may be mistaken...
But I thought PUP's "sit on top" and kick in when your "regular insurance" (liability) hits its coverage ceiling..
whether it's for auto/home or both...and offers protection against catastrophic liability claims/judgements
against ones personal assets. Those assets may include autos, home, valuables, and current and future earnings.

Sure...
Umbrella insurance policies may indeed be what the Doctor ordered; but you've got to have auto/home insurance
policies that will already contain liabilty-language therein, to be eligible.

-If the OP is mulling over even having an insurance policy with a liabilty clause/deduction...
then, no doubt, a PUP is also out of this equation.

Again...I hate paying for an Uninsured Motorist Policy!!

-I've learned over the years, (when dealing with uninsured/underinsured folks):
You really can't squeeze blood out of a turnip...and they know that!!


:)

Bob