03-18-2010, 08:42 AM
>>> My State Farm insurance has an added coverage at a real low cost to have non-owned vehicle coverage
That is not the point! That insurance covers the renter's ass. The concern here is the owner of the car. I have been told many times here that the primary rule is that coverage follows the vehicle, meaning the first coverage to be applied on a claim is the coverage on that vehicle, the coverage paid for by the owner of the vehicle. All the other coverage is on top of that. Why do you think it is a real low cost? Because the odds it will pay out are low.
All this theorizing and talking to agents -- if you ever actually file a claim in Hawai'i you will learn how it works. I've had to file one, and my family. For example, the medical bills here are covered by the policy specifically on the vehicle, no matter whose fault. Any other coverage amounts come into play when that runs out.
Also none of this addresses the dilemma of a car owner whose car gets "totaled" by the insurer after a relatively small collision. With the unibody construction and the crumple technology put into cars now, and the high cost of parts and body work, even a collision without injuries can result in a horrific repair bill. The insurer has the right to pay the Blue Book on the car and not repair the car. So if you take care of your car, and it is an older car, the odds are you can't replace it for what they give you for a car that is anywhere near as reliable.
If someone wants to take on all these risks, and feels lucky, fine -- but he/she should know that it could be a real drag if the vehicle is hit.
That is not the point! That insurance covers the renter's ass. The concern here is the owner of the car. I have been told many times here that the primary rule is that coverage follows the vehicle, meaning the first coverage to be applied on a claim is the coverage on that vehicle, the coverage paid for by the owner of the vehicle. All the other coverage is on top of that. Why do you think it is a real low cost? Because the odds it will pay out are low.
All this theorizing and talking to agents -- if you ever actually file a claim in Hawai'i you will learn how it works. I've had to file one, and my family. For example, the medical bills here are covered by the policy specifically on the vehicle, no matter whose fault. Any other coverage amounts come into play when that runs out.
Also none of this addresses the dilemma of a car owner whose car gets "totaled" by the insurer after a relatively small collision. With the unibody construction and the crumple technology put into cars now, and the high cost of parts and body work, even a collision without injuries can result in a horrific repair bill. The insurer has the right to pay the Blue Book on the car and not repair the car. So if you take care of your car, and it is an older car, the odds are you can't replace it for what they give you for a car that is anywhere near as reliable.
If someone wants to take on all these risks, and feels lucky, fine -- but he/she should know that it could be a real drag if the vehicle is hit.