[AweSam8]

Hi all,

Just want some advice as to what kind of liability and other options anyone could recommend. I'm getting my car in 2 weeks and concerned about the type of coverage to get. I'm assuming getting GAP from the auto insurance company would probably be better than getting it from the dealership? Any advice is welcomed! Thanks!

~Sam

[Sedan_Clan]

Originally Posted by AweSam8

Hi all,

Just want some advice as to what kind of liability and other options anyone could recommend. I'm getting my car in 2 weeks and concerned about the type of coverage to get. I'm assuming getting GAP from the auto insurance company would probably be better than getting it from the dealership? Any advice is welcomed! Thanks!

~Sam

Why would you assume that? GAP is GAP. If you lease, you'll have GAP automatically built into the loan structure, so why pay for it twice? Coverages are a personal thing, but at least get 100/300, uninsured, etc. etc. Some people like to carry exorbitant amounts of coverage (..I guess one can never be TOO insured), but in most cases 100/300 is fine. I'll let the insurance guys ramble on about that though.

[Trajan265]

Sam,

If you are leasing, GAP is covered by BMW, I am not sure if you are financing.

As far as liability, you don't want to go with the state minimums. IMO, you should have at least bodily injury liability limits of $100k/$300k (Per person/per incident) and I would recommend $250/500. Property damage liability of at least 100k.

In PA, we select between full or limit tort options (full is better), but I am not sure how it work in WA state with their no-fault system.

Make sure you do not waive or sign down your UM/UIM coverage. They should be set at the same limits of your bodily injury limits. That is the only thing that will protect you and your loved ones if you are hit by an uninsured or under insured motorist (and there are lots of them).

Most of these items are not too expensive. The high costs of a policy are typically associated with comprehensive and collision on an expensive-to-repair car like the BMW.

Just my thoughts. Good luck with the new car.

[AweSam8]

I am financing, which probably means Gap is excluded?

[AweSam8]

Originally Posted by Trajan265

Sam,

If you are leasing, GAP is covered by BMW, I am not sure if you are financing.

As far as liability, you don't want to go with the state minimums. IMO, you should have at least bodily injury liability limits of $100k/$300k (Per person/per incident) and I would recommend $250/500. Property damage liability of at least 100k.

In PA, we select between full or limit tort options (full is better), but I am not sure how it work in WA state with their no-fault system.

Make sure you do not waive or sign down your UM/UIM coverage. They should be set at the same limits of your bodily injury limits. That is the only thing that will protect you and your loved ones if you are hit by an uninsured or under insured motorist (and there are lots of them).

Most of these items are not too expensive. The high costs are typically associated with comprehensive and collision on expensive to repair car like the BMW.

Just my thoughts. Good luck with the new car.

Thank you. It actually seems that with those options, insurance is cheaper than my current options with my Mazdaspeed 3. Which I find odd, especially since I only have the bare bones on it ($25k/50k). But I will definitely do $100/300.

[Sedan_Clan]

Originally Posted by AweSam8

I am financing, which probably means Gap is excluded?

The dealership can still throw in GAP for about $500 on a purchase (..and in many cases I've had them throw it in at no additional charge). Just get it through the dealer. Use your negotiation savvy Sam.

[Trajan265]

Originally Posted by AweSam8

I am financing, which probably means Gap is excluded?

Most likely. Probably best to get a quote from your dealer (it is a one-time fee), and a quote from your insurance company. You can either pay up front or spread the payments out throughout your loan, or pay periodically through your car insurance. Total cost shouldn't be too bad (guessing $500ish?) Definitely worth it.

[AweSam8]

This is why I love the forums: Great help from fellow BimmerHeads!

Thanks!

[Sedan_Clan]

Originally Posted by AweSam8

This is why I love the forums: Great help from fellow BimmerHeads!

Thanks!

That's what we're here for.

[Steve33]

Originally Posted by Trajan265

Make sure you do not waive or sign down your UM/UIM coverage. They should be set at the same limits of your bodily injury limits. That is the only thing that will protect you and your loved ones if you are hit by an uninsured or under insured motorist (and there are lots of them).

I had a settlement from an accident... if I didn't have underinsured coverage, I would've been so deep in medical bills it would've been equal to over 100 YEARS of insurance premiums. Don't be cheap, because insurance is terrible until you need it... then when you need it you get what you pay for.

EDIT: Notice I said WHEN you need it, not IF

[AweSam8]

See this is something I don't understand: uninsured and underinsured. If we have insurance and they hit us, why would we need extra coverage if it is their fault? Shouldn't those who are underinsured still be liable, and shouldn't our insurance company be taking care of this for us? What amount do you guys think is adequate for this option?

[Steve33]

Originally Posted by AweSam8

See this is something I don't understand: uninsured and underinsured. If we have insurance and they hit us, why would we need extra coverage if it is their fault? Shouldn't those who are underinsured still be liable, and shouldn't our insurance company be taking care of this for us? What amount do you guys think is adequate for this option?

Those who are underinsured are liable... if they have the money to pay you. If they don't have the money to pay you, then you get to sue your insurance company to get a bigger settlement (they'll only offer you an amount to cover bills and almost no compensation for damages). Your passengers would also get to go after them, your insurance company and then you if they hate you

MINIMUM $500k per injured person

[Sedan_Clan]

Every year as the cost of my premiums continue to decrease, I increase my coverage.

[Deleted853]

Originally Posted by Steve33

Those who are underinsured are liable... if they have the money to pay you. If they don't have the money to pay you, then you get to sue your insurance company to get a bigger settlement (they'll only offer you an amount to cover bills and almost no compensation for damages). Your passengers would also get to go after them, your insurance company and then you if they hate you

MINIMUM $500k per injured person

As a pedestrian I was hit by a car last December. It destroyed my hip. With all the insurance I had and she had, I only walked with 100k after attorneys fees and subrogation.

If you don't know what subrogation is it's this.

My health insurer and yours gets to claim 1st dollars back for every dollar they spend on your medical bills caused by third parties.

So, imagine this scenario.

You get in an accident.

You have major life changing Injuries that will require lifetime costs and more healthcare.

You spend 4-8 weeks in the hospital and time after In a rehab. Your medical bills cost 150-200k minimum.

Your underinsured covers 500,000 per person maximum per incident.

Their insurance covers 50,000, and they are broke just out of college kids with no assets.

Now, to get any settlement you have to hire an attorney because no insurance company will deal in good faith without one.

Any attorney will take 1/3 minimum.

The guilty party company settles for 50,000.

You can only claim and additional 450,000 for this lifetime injury from your UI.

They agree and you end up with a total 500,000 dollars.

Now, 200,000 immediately goes to your health insurer because of the lien placed by subrogation.

That leaves 300,000 total left. The attorney is guaranteed 1/3 of 500,000. That is 166,667.00 dollars.

Now, to keep afloat, you have spent 30-40k in savings and have lost wages of another 30-40k.

Yet you total "take" from a 500,000 settlement is worth bow 133,333.00. Now, repay your savings, write off the lost wages and you're left with 90,000 dollars for a lifetime injury and pain and suffering Etc.

What happens if you have to have another surgery and hospital stay because of later complications? Does the 90k even cover all of that? Maybe just depends on how fast healthcare costs continue to ride.

In short pay for the insurance. Gets minimum of 1million UI insurance per person.

Remember, I was walking legally in a cross walk. My car insurance saved my bacon.

[Steve33]

Originally Posted by Mwm1166

As a pedestrian I was hit by a car last December. It destroyed my hip. With all the insurance I had and she had, I only walked with 100k after attorneys fees and subrogation.

If you don't know what subrogation is it's this.

My health insurer and yours gets to claim 1st dollars back for every dollar they spend on your medical bills caused by third parties.

So, imagine this scenario.

You get in an accident.

You have major life changing Injuries that will require lifetime costs and more healthcare.

You spend 4-8 weeks in the hospital and time after In a rehab. Your medical bills cost 150-200k minimum.

Your underinsured covers 500,000 per person maximum per incident.

Their insurance covers 50,000, and they are broke just out of college kids with no assets.

Now, to get any settlement you have to hire an attorney because no insurance company will deal in good faith without one.

Any attorney will take 1/3 minimum.

The guilty party company settles for 50,000.

You can only claim and additional 450,000 for this lifetime injury from your UI.

They agree and you end up with a total 500,000 dollars.

Now, 200,000 immediately goes to your health insurer because of the lien placed by subrogation.

That leaves 300,000 total left. The attorney is guaranteed 1/3 of 500,000. That is 166,667.00 dollars.

Now, to keep afloat, you have spent 30-40k in savings and have lost wages of another 30-40k.

Yet you total "take" from a 500,000 settlement is worth bow 133,333.00. Now, repay your savings, write off the lost wages and you're left with 90,000 dollars for a lifetime injury and pain and suffering Etc.

What happens if you have to have another surgery and hospital stay because of later complications? Does the 90k even cover all of that? Maybe just depends on how fast healthcare costs continue to ride.

In short pay for the insurance. Gets minimum of 1million UI insurance per person.

Remember, I was walking legally in a cross walk. My car insurance saved my bacon.

You're preaching to the wrong person, I've been through it all. I know to buy it all

[Deleted853]

Originally Posted by Steve33

You're preaching to the wrong person, I've been through it all. I know to buy it all

Didn't mean to seem like I was preaching to you, more like bolstering your response. Lol.

The 25 bucks a month is much cheaper than a lifetime of being broke from someone else's mistake or carelessness.

As you well know.

[AweSam8]

Well thanks for all the feedback! With all these auto insurance options, it gets a little confusing.

[Deleted853]

You're welcome. Also, you may want to call an attorney you might know who deals in PI cases and see what Insurance companies they deal with are the more honest and willing to pay out. They will lead you to a more expensive option, but a better option when making a claim.

[Steve33]

Originally Posted by AweSam8

Well thanks for all the feedback! With all these auto insurance options, it gets a little confusing.

The bodily injury and property damage is the highest component of my premium... the Under/uninsured driver coverage was only $200/yr

FYI when you get your car insurance quotes, mention you have a vehicle tracker (BMW has something in it to help recover it) and side air bags. I also qualified for a "highly skilled worker" and a good driver discount.

[AweSam8]

Originally Posted by Steve33

The bodily injury and property damage is the highest component of my premium... the Under/uninsured driver coverage was only $200/yr

FYI when you get your car insurance quotes, mention you have a vehicle tracker (BMW has something in it to help recover it) and side air bags. I also qualified for a "highly skilled worker" and a good driver discount.

So BMWs all come with some kind of Lo-Jack?

[AweSam8]

Any thoughts on personal injury protection?

[Sedan_Clan]

Originally Posted by AweSam8

So BMWs all come with some kind of Lo-Jack?

If you have BMW Assist, yes!


....but not all insurance companies discount for "LoJack" type equipment.