ltbauzo

We recently moved to California from the UK. I have not found a car I think and but I am getting quotes around $330 per month (I was told to expect and budget for £150 per month).
Apparently this is based on the fact that we have no driving experience (!) and no California license yet.
I have had a EU/UK driving license for the last 35 years but apparently that does not count (my wife is in a similar situation).
Do you know of any insurer willing to take that into account and not treat as a 18 (16?) year olds that just started driving?
​​​​​​​Taking into account the NCD in the UK would also be very welcome.

​​​​​​​Second question, even more concerning, the insurer I spoke to mentioned in the state (country?) you are only insured for a few thousand pounds worth of damage to a third party? Apparently the min requirement is $15K for the individual. Is that true?! That is tantamount to having no insurance when you consider the cost of medical care in this country..if you hit anyone and you are at fault you are liable for any damage above $15K. That concerns me. Not that I want to hit anyone of course. What am I missing?

Any words of wisdom welcome. Thank you.

postbox134

Car insurance for new arrivals will be very expensive unfortunately.

And yes don't get the minimum cover, you will be woefully under-insured in that case. There's very low legal minimums in most (all?) states compared to the UK where I never even thought about it.

SanDiegogirl

As said, insurance for new drivers is almost always very expensive as their driving record is not taken into account.
Don't know of any companies which are 'cheap' for new drivers, you'll just have to ring around.
.... and yes, get good cover , not the minimum

Pulaski

To concur with the above replies, we have long warned people to prepare to pay $2k/annum and up for car insurance on arrival in the US. As California is notoriously expensive, I am not entirely surprised at the quote you received. So I'd definitely recommend shopping around a bit, and talking to some local brokers, but I'd be surprised if you can get your premiums much below #3k pa ($250/mth).

I would also echo the warning above to not be suckered into "state minimum" insurance, as you will leave yourself wide open to be sued for any losses not covered by the paltry policy coverage.

The only good news is that so long as you avoid accidents and tickets, the premiums do drop very significantly over the next 3-4 years.

wisygreen

It is also worth including uninsured/underinsured in your policy so if you do suffer a loss by someone with state minimum or no insurance you are covered by your own insurance company. Check with a couple of insurance brokers to see if you can get your no claims transferred.

Pulaski

A number of people over the years have claimed that they were able to do that, but I have never been persuaded that that ever led to a meaningful reduction in premiums, perhaps unless the initially pitched premiums figure was inflated. It has always looked to me like the "we'll take your no claims into account" is just a marketing pitch, to snag you as a customer, not a meaningful benefit.

wisygreen

We did manage to get our no claims accepted with an Allstate broker but it was 20 years ago so thought it best to suggest calling several brokers. I remember it was a bit of a hassle getting the exact paperwork we needed but it did bring our premiums down quite drastically.

tom169

Liberty mutual did for us and wasn’t that involved. That said I’ve since had forum members tell me they weren’t able to.

S Folinsky

In purchase of insurance coverage, I’ll pass on the advice I’ve received in the level of coverage to purchase.

First of all, the legal requirement is for liability only for 15/30. (first amount is for one claim, second is total. Let’s say you are at fault for damage to two other vehicles, that’s when the 30 kicks in). Proof of insurance is required at two times - annual registration and report of a collision. BTW, that coverage is not limited to medical; it includes collision damage to the other guy.

As you note, that coverage is quite minimal. One has to get practical - what does one have to lose if held liable? Many, if not most people are what legal types call “judgment proof.” In that case, the claimant will be only able to collect the limits of the policy. That’s it. The claimant may have incurred $500,000 in damages, but as a saying goes, one cannot get blood from a turnip.

Now, I am retired. But we own a home in LA which has wildly appreciated in the 27 years of ownership. We have also inherited from our deceased parents. In other words, a lot to lose. If someone slips on our walkway, our homeowners covers that. We have auto liability. Then we have an “umbrella” which is liability coverage with the amount of the underlying coverage as kind of a super deductible. (Umbrella coverage is relatively cheap).

Also, on top of liability, we have “comp and collision.” If one has a loan or leases the vehicle, the lender/lessor will insist on coverage with them as a co-payee. It is common to have uninsured/underinsured coverage. Also, minor medpay coverage.

We also have a separate earthquake policy via “CEQA” inasmuch as no private insurer writes earthquake coverage anymore.

Pulaski

I totally agree with the recommendation for an umbrella policy (which is only available as an add-on to a home insurance policy IIRC). I think $1million of additional liablility coverage is the minium increment, but it's hardly worth quibbling about when we are paying less than $15/mth for that $1million of additional coverage. Given America's litigious nature, $15 isn't much to pay for a good night's sleep knowing that we are well covered.

S Folinsky

Having just solicited competing quotes, different carriers had differing requirements for the underlying liability coverage. On the auto end, one required 100/300 while another required straight 500 (first time in 50 years I’ve ever seen flat rather than stepped coverage).

The reason I mentioned liability for property damage, here in LA, it can often exceed medical bills. Let’s say one rear ends at low speeds car which is stopped third in line causing a chain reaction - the three cars being a Tesla Model S, a McLaren 720 and a Porsche Cayenne. Do the math. The people might be just fine, but the cars might be history.

ltbauzo

Thank you for taking the time to reply.
I do not own a property in the US so I guess no umbrella cover for me and my only option is to max out the cover I get offered, which means $100K/$300K for medical and $100K for property.
I have not found a single insurance that would consider my No-Claim Certificate from the UK unfortunately. Essentially I am considered "high risk" initially, which makes sense but also could be a business opportunity for any disruptive insurance company that could be bothered to do the due diligence on any UK customer. That should not be too difficult, it is the same language after all..
I am still confused as to how the system works. If I am insured for only $100K and I happen to put someone on a wheelchair for life will this person be allowed to come after me for only $100K? That does not sound plausible. I expect that in those circumstances I would be liable for a lot more, all my assets worldwide would be considered and US Courts would at least attempt to force me to sell up to refund this poor guy. Right? This works the other way around too. I mean - to S Folinsky's point - if someone mistakenly destroys my brand new Tesla then all I am going to potentially (likely?) get back is $15K? I am sure I am missing something...

steph0scope

Have you set the wheels in motion (pun intended) to get your CA licenses? Strictly speaking, you only have 10 days from the date you move to CA to get a license. In practice in the larger cities that’s impossible as the wait for an appointment is longer than that. But you need to get cracking with the application process.

Pulaski

The uncertainty I expressed ("IIRC") over the add-on nature of a liability umbrella policy, is that I think it may also be possible to add an umbrella to renter's insurance, which I also strongly recommend - it's like homeowners insurance, but without covereage for ownership of the building, but has coverage for things including you accidentally damaging or destroying your rental home.
It's too small a market, and all your customers drop off after only 2-3 years when they qualify for the same rates as anyone else. Also, like it or not, you are a signifcantly increased risk in the short term - remember Mrs Sacoolas?
That is why you also need "uninsured/ underinsured damage" coverage - so your policy will pay even if the idiot who ran into you has inadequate insurance, but yes, without liability coverage your net worth is potentially at risk.

lansbury

Just in the process of renewing or home and auto, the umbrella policy is part of the auto insurance. $2 million coverage $312 a year, been sued once legal bill in excess of $50k and settled out of court. Lawyer said we would easily win the court case but other party decided to settle for less than going to court would cost the insurers so they paid up. Cost myself and Mrs L zero. Best advice I was ever given to get umbrella insurance.