Multi-Car Discount

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  #1  
Old 01-09-19, 11:20 AM
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Multi-Car Discount

One driver - elderly

Liability Insurance only


Ex has two cars insured, will sell one shortly. She claims her insurance agent told her the monthly premium might go up because she'll lose the multi-car discount.

What? In other words, she thinks her premium goes DOWN when you add a second car because of the discount and goes UP when you only have one car.

I tried to explain that adding a second car doesn't double your monthly premium, you get around have off for the second.

Her agent is some new guy that sells insurance for different companies, not sure what that is called.

I told her she's *%^$(* crazy, she says I'm crazy and getting taken by my insurance company.

Who is the crazy one?

Thanks, I think.
 
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  #2  
Old 01-09-19, 11:30 AM
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Well I think she's right! Her per car rate would go up, so iow, if she's paying $300 for each car now, she may have to pay $350 for just one car (just throwing numbers out at random to make a point!)
 
  #3  
Old 01-09-19, 11:49 AM
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Sorry, we're talking about the monthly premium, not price per car. You're right about that.

She's saying when you add a second car your monthly premium goes down.

I'm voting her.
 
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Old 01-09-19, 11:53 AM
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Well yeah, same thing. Again, just throwing numbers out. If she's paying $50/month per car =$100, she may have to pay $55 per month for one car. Of course it wouldn't double, but just be slightly more.
 
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Old 01-09-19, 12:03 PM
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We agree, you just said it better.

Using your numbers, she thinks her premium will go up to say $125 when she drops the second car because she loses her discount.

I'll call her back, she had to misunderstand the agent... I think.
 
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Old 01-09-19, 12:17 PM
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Again, just throwing numbers out. If she's paying $50/month per car =$100, she may have to pay $55 per month for one car. Of course it wouldn't double, but just be slightly more.
Using those figures she would have a net decrease of $45 a month. So she would still be paying less per month overall.
 
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Old 01-09-19, 12:31 PM
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Well of course, she would be paying less overall, just more for the one car than before!
 
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Old 01-09-19, 12:40 PM
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So she would still be paying less per month overall.
My thoughts also. We went around and around but it just wouldn't sink in.

She was a little down yesterday receiving her home owners policy, it went up quite a bit that she can't afford. She kept telling me how cheap this guy is with much better insurance... I don't know.

If she refers someone to him he'll send her $10.

Thanks, I'll call her when she settles down.
 
  #9  
Old 01-10-19, 02:25 AM
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No, she's right. Her premiums are likely to go up when she sells the extra car.

For liability only, she may only be paying a couple hundred dollars a year for insurance and the multi-car discount would be in that same ballpark.

I am an insurance agent and I see this all the time. Very frustrating and hard to understand.
 
  #10  
Old 01-10-19, 02:41 AM
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About 30 yrs ago I had 2 vehicles insured and when one broke down I dropped the insurance and was dismayed to find out my 6 month coverage price dropped from $120 to $110. More recently, my youngest son had dropped the coverage on the 4x4 he never drives and he told me the other day he put coverage back on it because it saved him $2 per month.
 
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Old 01-10-19, 03:57 AM
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The problem with auto insurance is that we insure the car and driver in combination. It should only be insure the driver not the car. It should not make a difference what car or vehicle one drives (and you can only drive one at a time). It should be based on the person and their particular record regardless of the car. You can own a thousand cars, but you can only be insured as you drive one of them. One of many of the absurd things in our culture.
 
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Old 01-10-19, 04:03 AM
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Norm, that wouldn't work. If I drive a Ferrari to work everyday, I am much more expensive to insure than if I drive an old pickup truck. I am the same driver, and my likelihood of being in an accident is the same, but the severity of an accident is going to be determined by the vehicle I am in.

It's not absurd at all. It is pure statistics.
 
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Old 01-10-19, 04:16 AM
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Sorry I don't buy it. It's still the driver that controls the out come of an accident. Sure the Ferrari cost more to fix but maybe we should put a ceiling on repair cost based on the average car and the additional cost of a Ferrari repair should be on the owner. Sounds fair to me. You can afford a high end car, you can afford to pay the cost involved. Why should I share in it if I can't drive it?
 
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Old 01-10-19, 04:34 AM
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When you call your wife back to discuss this further, just have her ask her agent for a quote on 2 cars, then a quote on just one car. Then she'll know & there wont be any question or misunderstanding. She'll know exactly.

Norm, I get where your coming from but, there are other things to consider. If you insure or base the premiums on the drivers history.... instead of insuring the car, what if the car catches on fire after its parked? The car wont be insured... especially if your now out in your pickup. In your scenario, the truck is the only vehicle insured because the insured driver is in it.
What if it gets stolen, broken in to, vandalized, etc. I really do get what your saying but the car does have to be insured... & insured at all times.
I'm not calling you out, I'm just commenting on your question/statement.
 
  #15  
Old 01-10-19, 05:23 AM
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When you call your ex-wife back to discuss this further...
I will find out what she pays, she just added the second car a couple months ago. Pretty sure she was through Wells Fargo then he wrote her up with Progressive and it went down.


For liability only, she may only be paying a couple hundred dollars a year...

I don't know why but we pay more than that even in a small town of 1,200 population.


I'll throw this out showing what I pay:

Age: 67
Veh 1: 89 K-1500 138k miles
Veh 2: 98 Crown Vic 38k miles
Accidents: never
Tickets: 30+ years ago - driving snowmobile on sidewalk - $30
---------- 1969 DWI - $150

I drive maybe 1,000 miles a year, she a bit more.

One Veh: $40 a month (1-2018)
Two Veh: $88 a month (6-2018)

I now have Comp on both so $101 a month parked in garage


I know for decades I had Allied Mutual (Wells Fargo ?) but I just found out they were bought out a few years ago by Progressive.

When she gets up I'll ask what she pays now.

Thanks
 
  #16  
Old 01-10-19, 01:52 PM
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Norm, I get where your coming from but, there are other things to consider.
Yes, of course you are right. It's not so cut and dry as I made it out to be.
 
  #17  
Old 01-12-19, 07:05 AM
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Well of course, she would be paying less overall, just more for the one car than before!
You nailed it, that is what she meant. Right now she pays $12 a month on the Riviera (sold) and $24 on the Bravada, the Bravada might go up a little. With Wells Fargo she was paying $40 for just the Riv.

Correction: Wells Fargo was bought out by Nationwide, not Progressive, my bad.

Little brother and sons all have Progressive and like it so I may give her agent a call.

Thanks everyone, turns out I am the crazy one.

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