So I was playing around with on-line quoting and of course had to use Geico. Recently, now about 3 months late I received a well done email. Obviously now part of a drip campaign. This is not remarkable but what was there certainly is.
Step 1.Remember why you have insurance, it is not for the little annoying thing that you can comfortably afford to fix. It is for the event that you need help paying to fix. Filing a claim because “I pay for insurance why shouldn’t I use it…” can get you in to trouble. **What is trouble? Trouble is having rates on the higher side of the market for at least three years**
I am aware of no way to ever say someone has to much insurance, the fact is you just never know. There is though one circumstance you can say you may be overinsured when it comes to a home. An insurance company is insuring the cost to rebuild your home. They are not covering your tax assessment nor are they covering the market value of the home or even what you think your home is worth.
2003 Volkswagen Jetta GL: So according to KBB.com the Good Trade in Value is $1700 and Fair is $1125 so maybe I am around $1500. Now private party says $3225 and Fair is $2525, let’s keep being reasonable and say $2875 as private party we won’t use retail because this car is not in excellent condition.
How about Edmunds? A little different process here comes up with $2734 as a trade in $3752 as a private party, same thing here retail seems a bit high.
So KBB average with my adjustments is $2187.50 and Edmunds is $3243 that is about a $1000 difference.
It is your means to get around town, to work, to play to kids activities. it is worth a lot to you but what is it worth to an insurance company? The cost to repair a car is going up so if your car is older you need to keep in mind that if the cost to repair your car is more than the value of the car it may not get fixed. Now what is the car actually worth in dollars? It may not be as much as you want.