Mandatory Liability Insurance

[Dale Reed]

In Washington State I satisfy the mandatory Liability Insurance requirement by filling out some paperwork and buying and depositing a $60k CD in a Credit Union. I no longer pay the rapidly increasing cost of commercial insurance.



My question is have any of you known of anyone who has done something similar but had trouble when stopped by Smokey Bear in another state or in Canada?



Thanks for the info. Dale

 

[Skydiver]

Many cities are self insured as well.

Good Idea Dale. Do you have a 1 million umbrella that takes over where the 60k might run out?

 

[MMeier]

Hmmm....

... . interesting, please explain some more !

 

[icman95]

If you're using your truck for commercial transport and it's registered to tow over 10k then it's my understanding that the Fed DOT requires a minimum of $1 million liability. Is your situation different?

 

[BarryG]

It can be quite cost saving as long as you have the capital to tie up and qualify with any other provisions. I would check with your DMV, your state department of regulatory agency or the state insurance regulatory office. Colorado has a self insurance certificate that must be applied for and last I saw at least here was a 500. 00 filing fee for the certificate and you had to have 25 or more vehicles registered with the state to qualify for it. I checked into that once several years ago here for work. We didnt meet the 25 vehicle requirement so it was a moot point for us. It may be different now or in your state but there should certainly be some sort of certificate. The states use a reciprocity agreement between them for drivers license etc and I think auto insurance falls under that as well.

 

[jeepit]

Hope you have more than 60k protecting yourself. In a serious accident that won't do it...

 

[Dale Reed]

Sorry, would have got back to you sooner but I guess I have not figured out how to be notified.



Apparently none of you has heard of anyone having trouble in other states (than your own) or Canada which was my original question.



The applicable websites in Washington State are:

Types of Insurance | Washington State Office of the Insurance Commissioner

Download: Mandatory auto insurance law (93 KB)

and

Washington State Treasurer's Office - Home

and

WA State Licensing: Home



The treasurer sent me the required forms and the dol instructed me how to make myself the required insurance billfold card. I have not been stopped yet here in Washington State but I am kinda looking forward to it.



The PEMCO agent who was rapidly increasing my yearly payment told me that insurance companies do not enjoy selling liability-only polices because they do not make any money on them. Also I am 73 years old so I guess us old geezers are expected to be lousy drivers. But I have never had an accident and its been over 40 years since a patrolman stopped me for driving recklessly in a MGA! And a couple years before a patrolman in Alaska got kinda testy when I zoomed through his little town that I had not noticed was a town.



So I married, sold the MGA, and now drive a Mighty Cummins. Oldie but a goodie, just like me. Dale

 

[Skydiver]

Good thread Dale. You are just trying to save a dollar and that got our attn.

Do you have an umbrella policy?

One ticket in 40 years,,way to go!!

 

[Dale Reed]

No insurance, not on the truck and car, not on the house, not even sickness insurance.



Getting way off the intentions of my original thread but it is my observation that insurance companies redistribute wealth after taking their cut. Kinda like Marx and/or Lenin said "from each according to his ability and to each according to his needs. "



But I am a capitalist and not a commie. All kinds of weirdos drive Cummins. Dale

 

[KBalzuweit]

I have a couple questions. .

You say commercial insurance, do you haul commercially?

How much a year are you saving? Seems like one accident could force you to loose everything.

 

[MMeier]

Dale, so that $60k CD gets put into like a trust fund so to speak? Pooled with others who do the same, and if the need arises the $$$ come out of that. . or are you ecpected to pay for damages yourself?

 

[jelag]

We travel to Canada all the time... . in BC you have to have a filing with the BC government... . that takes a bond from your insurance carrier... if you don't have that in place they charge you trip insurance as you cross the first set of scales... . if your over 4500 KG or maybe 5500 KG you have to call FIRST before you cross the border for both the insurance and a trip permit unless you have IFTA and apportioned plates with BC on your cab card... . A commercial vehicle in BC now over the weight and without a permit is now something like a $1500 fine. . again unless you have apportioned plates... .

Alberta has never asked for insurance other than our normal insurance card that is issued by our carrier that states its good in Canada... Again a trip permit is needed in Alberta unless you have apportioned plates and Alberta on your cab card...

One province is 4500 kg(9900 lbs) and the other is 5500 kg(12100 lbs)... so a 1 ton pickup doing commercial travel in either province requires this... I've seen the commercial cops stop 1 ton pickups and write them up but have no idea what the cost of the ticket is... BTW this is not the loaded weight but the GVW of the vehicle... .

With WA plates that are apportioned we have had our cab card looked at 45% of the time... . as an after thought as we cross into AZ its a 100% check... .

hope this answers your questions...

 

[Dale Reed]

Sorry, I misspoke by using the word "commercial. " What I meant was insurance sold by PEMCO, Allstate, GEICO... The only truck I drive is the old pickup in my signature. Sorry about that.



No "trust fund. " If I cause an accident then the $60k goes first then I am expected to pay the rest of the bill out of my regular savings account.

 

[MMeier]

Darn

... thought we were on to something here!!

 

[jelag]

We found with our insurance that if we carry a $5K deductible the rate falls to a reasonable price...

 

[Dale Reed]

$5k deductible for liability or is that for comprehensive? We are forced by the state to buy only liability insurance.



Apparently no one has had trouble with whatever insurance they have driving in another state or Canada. Interesting, that is what I really wanted to know. Dale

 

[KBalzuweit]

I just can understand putting 60k or more at risk. I pay $396 a year for home owners insurance and about $700 a year for FULL coverage on my truck, and add in my wifes 08 Grand Caravan and I spend less than 2k a year total for insurance. By far worth it to me to not put my financial future at risk.