[Kevin]

One of our members, RAS_STI (Dominic) is an insurance professional and Subaru enthusiast. The ins and outs of insurance can be both tricky and time consuming so I asked him to do a little Q&A with me to help out our members understand what they have or should ask for when getting an insurance policy for their Subaru.


I will update this thread as our members ask important questions and receive insightful answers from RAS_STI and others.

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My insurance agent speaks in insurance jargon, talking about Bodily Injury and Personal Property Liability, Personal Injury Protection, Collision and Comprehensive, Uninsured Motorist, and even No-Fault Insurance.

Can you tell me what these mean?

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I read my policy and I came across the following terms, can you tell me what they mean?

Auto Insurance Score, Binder, Declarations page, Deductible amount, Discount, Good Driver Discount, Emergency road service, Exclusion, Gap Insurance, High-risk driver, Limits, Medical payments coverage, Personal injury protection, Premium, Rental Reimbursement, Surcharge, Underinsured driver, Uninsured driver or motorist


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I know some states require that drivers carry minimum liability coverage, but the Insurance Information Institute warns that state minimums nationwide do not provide sufficient coverage in the event of a serious accident. If I am involved in a serious car accident, I would like to rest assured my car will be repaired to my satisfaction or replaced.

What is a sufficient amount of coverage in your opinion?

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What do the number mean in my coverage amounts (250/500/250 - 250/500)?

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What are some of the major factors that affect my auto insurance premiums?

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I have an expensive aftermarket stereo I installed myself. If I have the receipt, will my insurance cover the radio if the vehicle is stolen? What about if the radio itself is stolen and I have a minimal deductible? What if the dealership installed the aftermarket stereo and incorporated the cost in the purchase of the vehicle?


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My car sits on JDM STI wheels imported from Japan. They cost me a premium to buy and ship them here. If I have the receipt, will my insurance cover me if the car is stolen? What about if the wheels are stolen?

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Will a car alarm lower my insurance premiums?

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I overheard an insurance agent say that there is some relationship between my credit score and the cost of insurance...can you explain how my credit score might influence my insurance premium and why insurance companies look at the score?

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If I go to the track, will I be covered if I experience an accident? Is there some special insurance I can obtain for the day to ensure I am protected?

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As with all things you should really speak with a professional regarding your exact situation. Every situation is different. Send RAS_STI a PM if you have any additional questions.

[Kevin]

My insurance agent speaks in insurance jargon, talking about Bodily Injury and Personal Property Liability, Personal Injury Protection, Collision and Comprehensive, Uninsured Motorist, and even No-Fault Insurance.

Can you tell me what these mean?

Bodily Injury – A legal liability that may arise as a result of the injury or death of another person.

Personal Property (I think you mean –Property Damage) – Protection against liability for damage to the property of another, including loss of the use of the property, as distinguished from liability for bodily injury to another. In the majority of cases it is written along with bodily injury liability protection.

Collision Insurance – A form of automobile insurance that covers loss to the insured’s own vehicle, caused by its collision with another vehicle or objector its upset but not covering bodily injury or property damage liability arising our of the collision.


Comprehensive (AKA “other than collision) – This is the direct or indirect loss to the covered auto, except collision. OTC generally pays for any direct accidental loss to a vehicle - except for specific exclusions. Coverage specifically mentioned in the policy includes – missiles, falling objects, fire, theft, explosion, earthquake, windstorm, hail, water, flood, malicious mischief, vandalism, riot, civil commotion, contact with bird or animal and breakage of glass.

Uninsured Motorist – A coverage where the insured will pay damages to the insured for which another motorist is liable if that motorist is unable to pay because he is uninsured. This coverage usually applies to bodily injury damages only. Injuries to the insured caused by a hit and run driver are also covered.

No-Fault Insurance – Many States have passed laws permitting the individual automobile accident victim to collect directly from his or her own insurance company for medical and hospital expenses regardless of who was at fault in the accident. There are many variations in the laws of those states, which have no-fault statues. Most States allow the individual to sue the negligent party if the amount of damages exceeds a certain stated limit.

[Kevin]

I read my policy and I came across the following terms, can you tell me what they mean?

Auto Insurance Score - What the insurance industry calls "credit scores" are actually "insurance risk scores." Both scores are based on information contained in your full credit report, but they put weight on different factors in order to calculate a final score. Thus, even if you purchase your credit score from one of the major credit-reporting agencies, you still don't know your "insurance risk score," which is not available to you.

Binder - An agreement executed by an agent or insurer putting insurance into force before the contract has been written or the premium paid.

Declarations page (aka “DECS PAGE) – Usually the 1st page within your policy. On this page it will outline all the major information within the policy: what is covered, rates (premiums per vehicle), policy number, term, name and address of insured, end date, effective date, loss payee, info about the auto, endorsements and premium.

Deductible amount – The portion of an insured loss to be paid by the insured before a recovery may be made from the insurer.

Discount – A driver may be eligible for discounts if he/she hits certain marks of performance. Ie: good driver (prop 103 in California) - 20% lower premium.

Good Driver Discount – Based on driving record, number of miles driven per year, and years of driving experience. To qualify, drivers may not have been involved in any of the following in the last 3 years: more than 1 violation, principally at fault in an accident which caused bodily injury or death, convicted of a DUI under age 18, more than 1 dismissal of a traffic citation.

Emergency road service – This coverage is offered as an add-on. It offers services to the insured at the time of a vehicle failure or malfunction. Similar to AAA.

Exclusion – A provision in the contract that denies coverage for certain perils, personal property or locations.

Gap Insurance – Gap coverage is usually provided by an endorsement that covers the different between the amount owed for a vehicle and its actual amount an insurer will pay if it is stolen or determined to be a total loss. This type of coverage should be considered by anyone purchasing or leasing an expensive or classic auto.

High-risk driver – A classification given to a driver usually based on age or driving record.

Limits – The total amount of benefits payable for a given situation or occurrence.

Medical payments coverage – Covers reasonable medical and funeral expenses for bodily injuries caused by an automobile accident and sustained by the inured driver, family members and any passengers. It is not liability insurance.

Personal injury protection – Similar to “no fault” insurance. It will cover the insured and passengers and any other persons injured due to the fault of the insured.

Premium – The price of insurance protection for a specific risk for a specific period of time.

Rental Reimbursement – Added by an endorsement the insurer will pa, in addition to physical damage coverage, up to a set amount per day for: Transportation expenses incurred because of physical damage to the insured auto.

Surcharge – An added charge that the insured is responsible to pay. Usually due to, but not limited to, driving record.

Underinsured driver - Someone who is at fault in an accident that has the minimum limits of liability required by the state, but the amounts are insufficient to cover all losses.

Uninsured driver or motorist – A person without insurance. Someone who is an insolvent insurer. The driver of a hit and run vehicle.

[Kevin]

I know some states require that drivers carry minimum liability coverage, but the Insurance Information Institute warns that state minimums nationwide do not provide sufficient coverage in the event of a serious accident. If I am involved in a serious car accident, I would like to rest assured my car will be repaired to my satisfaction or replaced.

What is a sufficient amount of coverage in your opinion?

This is a very tough question to answer. My personal thoughts and coverages are as follows: Firstly, cars are getting more and more expensive. So the typical 15/30/5 coverage is not enough. Secondly, people are more litigious than ever, so to avoid any legal issues arising out of my negligence, I want to make sure that I have a large amount of liability coverage. Since I have a home, business, family etc etc, I have a lot to lose. And thirdly, the people in my car are very important to me. If someone hits us who is uninsured, or underinsured, I want to make sure that I have adequate coverage. So, with that said, I have 250/500/250 Bodily injury/Property damage and 250/500 UN/UD insured motorist coverage.

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What do the number mean in my coverage amounts (250/500/250 - 250/500)?

This means that I am covered for 250K per person in the other car, not to exceed 500K for the entire accident. And I have 250K in property damage. The first set of 3 numbers (250/500/250) shows my “liability” limits. The second set of two number (250/500) shows the coverage I have on MY vehicle if someone hits us who is Uninsured or Underinsured. So I have 250K coverage per person in my car, not to exceed 500K for the entire accident.

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What are some of the major factors that affect my auto insurance premiums?

Age, Sex, Marital status, Violations, accidents, vehicle type, credit rating, Job, Education, Number of miles driven to work, Annual miles driven, Theft deterrent devices, multi policy discounts.

[Kevin]

I have an expensive aftermarket stereo I installed myself. If I have the receipt, will my insurance cover the radio if the vehicle is stolen? What about if the radio itself is stolen and I have a minimal deductible? What if the dealership installed the aftermarket stereo and incorporated the cost in the purchase of the vehicle?

If it is aftermarket and installed by you, or someone other than the dealer then no. If the dealership installed the radio then it should be covered.

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My car sits on JDM STI wheels imported from Japan. They cost me a premium to buy and ship them here. If I have the receipt, will my insurance cover me if the car is stolen? What about if the wheels are stolen?

No and no. Your rims need to be scheduled by endorsement to be covered. In some cases, if the rims are “factory installed” they may be covered. Each insurance company is a little different.

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Will a car alarm lower my insurance premiums?

It depends on the type of system. For example if you have a passive disabling device that will help. A Lojack system could also provide a “discount”.

[Kevin]

I overheard an insurance agent say that there is some relationship between my credit score and the cost of insurance...can you explain how my credit score might influence my insurance premium and why insurance companies look at the score?

This could be true depending on the state. Technically, in California, they’re not allowed to do this. The theory is that people with bad credit (bankruptcies etc etc) could be more prone to having claims and not paying premiums.

[Kevin]

If I go to the track, will I be covered if I experience an accident? Is there some special insurance I can obtain for the day to ensure I am protected?

Great question!!! Typically no. However there is a little bit of a grey area. If you are involved in a “driver education” event, SOME companies may cover that. If you are driving in a bumper to bumper, full on, racing event you’ll have to go to a “Surplus Lines” broker for coverage. As far as I know Lloyds of London offers a racing package. They charge a premium based on the number of events you plan on racing in per year. This usually cover liability and property damage during these events. This type of insurance is not cheap. I’ve heard it runs in the neighborhood of $3,000 a year for that coverage. But, $3,000 is much less that it would cost to cover your auto, if your standard insurance decides not to cover the loss.

[lackskill]

Originally Posted by Kevin

I have an expensive aftermarket stereo I installed myself. If I have the receipt, will my insurance cover the radio if the vehicle is stolen? What about if the radio itself is stolen and I have a minimal deductible? What if the dealership installed the aftermarket stereo and incorporated the cost in the purchase of the vehicle?

If it is aftermarket and installed by you, or someone other than the dealer then no. If the dealership installed the radio then it should be covered.

I have had a couple situations where I had an aftermarket stereo covered due to theft in the state of WA under my comprehensive coverage.

[fourseasonsandles]

This is a great section for those that looking to purchase insurance. Something that you may want to consider adding is "I have had an accident, Now what?!" or something to that effect. Could include such things as how liability works, what your insurance and what the other parties insurance will handle, How and when they will handle it. How liability works, How your coverages cover the loss etc. Just a suggestion.

If needed I could help with some of these sections as I am a licensed adjuster for NY, VT, RI, MA, ME, CT and NH. I can offer limited information on the property damage side as my concentration is bodily injury, but I handle Liability, Under and uninsured claims. coverage questions, injuries to 3rd parties and injury evaluations on a regular basis.

[highmark]

My appologies if this is a repost...

Does insurance cover for an FMIC that requires you to remove the crash bar?

[fourseasonsandles]

Originally Posted by highmark

My appologies if this is a repost...

Does insurance cover for an FMIC that requires you to remove the crash bar?

If you are asking if your collision coverage will cover your aftermarket part. Then most likely no. When you buy an insurance policy, you are buying it for a stock vehicle. Unless you work out something with your insurance company ahead of time for your mods, they will not be covered.

If you are asking if they will still cover you if your remove your bumper beam. That is up the insurance company. It depends on their policy and you are going to want to check with them directly.

If you do call and ask them this question. I would not tell them who you are or that you have a policy with them. They could use that info against you in the future if you admit to altering your car.