Should I be paying $1300/yr. for under/uninsured motorist protection?

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Small Law Survivor
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Should I be paying $1300/yr. for under/uninsured motorist protection?

Post by Small Law Survivor » Thu Feb 15, 2018 4:35 pm

I had a long talk with my insurance agent today. It was quite revealing.

Among other things I learned that I am paying $1300/yr. for UM/UIM (uninsured motorist/underinsured motorist) coverage for three people/three vehicles. The agent said this was for medical care if we had an accident with someone who was under/uninsured. I pointed out that health insurance would pay for this. Her response was that this would fill in holes in a medical insurance policy.

When I pressed the agent on this, she said that very few of her customers had this, but it wasn't their practice to advise people to reduce insurance coverage (!)

I don't think I need this - any advice on cutting this from our policy?

Thanks in advance.

sport
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Re: Should I be paying $1300/yr. for under/uninsured motorist protection?

Post by sport » Thu Feb 15, 2018 4:56 pm

I believe this covers more than medical expenses. It would cover the things you could sue the other driver for, if they had insurance, such as lost earnings, pain & suffering, long term health effects, wrongful death, etc. If your agent cannot explain this properly, perhaps you need a new agent.

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Pajamas
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Re: Should I be paying $1300/yr. for under/uninsured motorist protection?

Post by Pajamas » Thu Feb 15, 2018 5:04 pm

Auto accident coverage varies by state. In at least some states there is a fund for people involved in an accident with an uninsured motorist.

Agreed that if your agent can't explain this, find a new agent, even if it is with the same company.

It is possible that the person you were speaking to isn't actually a licensed agent, just a salesperson or similar working in an agent's office. I have never actually met my agent because she has never been in the office the two or three times I dropped in for something.

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dm200
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Re: Should I be paying $1300/yr. for under/uninsured motorist protection?

Post by dm200 » Thu Feb 15, 2018 5:14 pm

No - you really need this AND it is usually a required coverage (it is in Virginia, where I live) when you have a liability policy.

It covers you (and your vehicle and those in your car) if the other driver is at fault and has no insurance or low limits. You are paying liability insurance for the other driver.

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dm200
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Re: Should I be paying $1300/yr. for under/uninsured motorist protection?

Post by dm200 » Thu Feb 15, 2018 5:17 pm

I don't know the "statistics" but I would be very sure that one way to reduce the costs for uninsured/underinsured motorist coverage (overall) is for your state to take steps to have more drivers be fully and adequately insured.

The premiums for this vary a lot, based on the car involved and (I think) the driver of your car. There is quite a difference in premium for this between our 98 Camry and our 02 Camry.

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Re: Should I be paying $1300/yr. for under/uninsured motorist protection?

Post by inbox788 » Thu Feb 15, 2018 5:18 pm

What state? What do you pay for liability? Coverage amount for both?

Should only be 5 or 10% the cost of liability, so unless you're talking about very high coverage amounts, sounds extremely high. Have you shopped around?

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Re: Should I be paying $1300/yr. for under/uninsured motorist protection?

Post by jharkin » Thu Feb 15, 2018 5:31 pm

It’s important coverage, but $1300 just for the UIM part? Seems very expensive....

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dwickenh
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Re: Should I be paying $1300/yr. for under/uninsured motorist protection?

Post by dwickenh » Thu Feb 15, 2018 5:35 pm

jharkin wrote:
Thu Feb 15, 2018 5:31 pm
It’s important coverage, but $1300 just for the UIM part? Seems very expensive....
+1 it is important and +1 you are paying too much.
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Re: Should I be paying $1300/yr. for under/uninsured motorist protection?

Post by dwickenh » Thu Feb 15, 2018 5:41 pm

Uninsured motorist can include coverage for bodily injuries and a coverage for Property Damage for a car not carrying collision coverage. If you have vehicles with liability only, this coverage will protect you if you are hit by an uninsured motorist(or under insured) for vehicle damages.
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Re: Should I be paying $1300/yr. for under/uninsured motorist protection?

Post by Snuffycuts99 » Thu Feb 15, 2018 5:42 pm

Fully agree with previous posts. You should absolutely have this coverage, but the premium you are paying seems outlandish.

I would advise getting quotes from another insurance agent, particularly since your current agent doesn't seem to understand or adequately explain the need for UM/UIM.

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Re: Should I be paying $1300/yr. for under/uninsured motorist protection?

Post by Sheepdog » Thu Feb 15, 2018 5:47 pm

My underinsured and uninsured protection, AARP Hartford, for 2 seniors with 2 autos

$500,000 bodily injury each person
$500,000 each accident
$100,000 property damage each accident

Total under and uninsured premium, annual, $208 (also have homeowners with same company, so that lowers the premium somewhat.)

Yours is high. Get several quotes from companies and independent agents.
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chessknt
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Re: Should I be paying $1300/yr. for under/uninsured motorist protection?

Post by chessknt » Thu Feb 15, 2018 5:56 pm

I don't carry this coverage because I have comp/collision and good medical insurance. Don't think it adds anything personally.

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dm200
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Re: Should I be paying $1300/yr. for under/uninsured motorist protection?

Post by dm200 » Thu Feb 15, 2018 5:57 pm

chessknt wrote:
Thu Feb 15, 2018 5:56 pm
I don't carry this coverage because I have comp/collision and good medical insurance. Don't think it adds anything personally.
I disagree. Suppose you and/or passengers are severely injured and/or permanently disabled by an uninsured motorist. Good medical insurance will not make up the difference.

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Re: Should I be paying $1300/yr. for under/uninsured motorist protection?

Post by chessknt » Thu Feb 15, 2018 6:00 pm

dm200 wrote:
Thu Feb 15, 2018 5:57 pm
chessknt wrote:
Thu Feb 15, 2018 5:56 pm
I don't carry this coverage because I have comp/collision and good medical insurance. Don't think it adds anything personally.
I disagree. Suppose you and/or passengers are severely injured and/or permanently disabled by an uninsured motorist. Good medical insurance will not make up the difference.
I never carry passengers and have an individual good disability policy. My state also has a catastrophe fund for this scenario but even when I lived in one that didn't the likelihood was so low that I couldn't justify the cost. It's like accidental death and dismemberment insurance imo.

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Re: Should I be paying $1300/yr. for under/uninsured motorist protection?

Post by bottlecap » Thu Feb 15, 2018 6:15 pm

UM/UIM is typically cheap. $1,300 a year sounds way out of whack, even if premiums do very by state.

We pay $1,000 per year total for two cars and two drivers for all our car insurance, with maximum UM/UIM.

Might be time for you to shop around.

JT

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Re: Should I be paying $1300/yr. for under/uninsured motorist protection?

Post by OnTrack » Thu Feb 15, 2018 6:23 pm

I agree with others that you should have this coverage. However, you might want to check if you need it on all your cars. Depending on the state you could be covered on all your cars even if only one car has the coverage. Don't do this until you are sure this is the case for your state.

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Re: Should I be paying $1300/yr. for under/uninsured motorist protection?

Post by Small Law Survivor » Thu Feb 15, 2018 6:45 pm

I am in Massachusetts. I am speaking with a licensed agent. Based on responses here, I'm not sure she told me anything incorrect.
chessknt wrote:
Thu Feb 15, 2018 5:56 pm
I don't carry this coverage because I have comp/collision and good medical insurance. Don't think it adds anything personally.
This was my thinking.
dm200 wrote:
Thu Feb 15, 2018 5:57 pm
I disagree. Suppose you and/or passengers are severely injured and/or permanently disabled by an uninsured motorist. Good medical insurance will not make up the difference.
Reasonable point, can't argue with this.

Guess I'll have to look into the cost of this insurance more carefully.

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Re: Should I be paying $1300/yr. for under/uninsured motorist protection?

Post by stlrick » Thu Feb 15, 2018 8:07 pm

I have this coverage in my umbrella policy, which is coordinated with my auto and homeowners. The umbrella is for 3 million. It costs me about $1000 per year - $500 for the standard umbrella and $500 for the endorsement covering uninsured motorists. The agent tells me that they stopped offering the UM endorsement on new umbrella policies several years ago.

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Re: Should I be paying $1300/yr. for under/uninsured motorist protection?

Post by Snuffycuts99 » Thu Feb 15, 2018 8:33 pm

Just checked my policy to see what I'm paying. 2 cars and 2 drivers...ages 35 and 31. 250k/500k coverage for both UM and UIM. $256 per year. Obviously not apples to apples comparison, but I think it's clear you're paying way too much.

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dual
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Re: Should I be paying $1300/yr. for under/uninsured motorist protection?

Post by dual » Thu Feb 15, 2018 8:48 pm

Small Law Survivor wrote:
Thu Feb 15, 2018 4:35 pm

I don't think I need this - any advice on cutting this from our policy?
Only insure for events that will make a big difference in your financial life. Here in CA, Uninsured coverage is limited to $30,000 or some relatively small figure. I can cover that without it making a big difference. If you can also, you do not need it.

It is weird coverage anyway. If you need coverage, it puts you in an adversarial relationship with your own insurance company.

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Re: Should I be paying $1300/yr. for under/uninsured motorist protection?

Post by FrugalInvestor » Thu Feb 15, 2018 9:14 pm

See this link for what under/uninsured coverage covers:
https://www.esurance.com/info/car/unins ... d-coverage

From article:
Quick coverage facts
Used when the at-fault driver doesn't have enough (or any) liability coverage
Can save you from having to pay for a car accident you didn't cause
Usually costs more to add to your policy in states with more uninsured drivers
Also look down a ways at the two types of coverage it can provide (quote from article):
Uninsured/underinsured motorist bodily injury coverage (UMBI)
Can cover medical expenses, lost wages, and injury-related expenses for you, any permissive drivers, and your passengers. It can also provide coverage for injuries sustained in hit-and-run accidents.

Uninsured/underinsured motorist property damage coverage (UMPD)
If your car is damaged in an accident with an uninsured or underinsured driver, this coverage steps in to help. Unlike UMBI, this coverage doesn't protect against damage caused by hit-and-run collisions.
I believe the specifics of whether or how these coverages apply can vary by state due to state insurance laws. If your agent can't adequately explain the details of how the coverage works in your state I'd be looking for a new agent.
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sport
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Re: Should I be paying $1300/yr. for under/uninsured motorist protection?

Post by sport » Thu Feb 15, 2018 9:41 pm

Shallowpockets wrote:
Thu Feb 15, 2018 8:54 pm
I suspect they don't care too much since they can collect these additional premiums from you and I.
I seem to recall reading that the insurance companies not only do not care, but they actually prefer it this way, for the reason you mentioned.

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Re: Should I be paying $1300/yr. for under/uninsured motorist protection?

Post by jay99 » Thu Feb 15, 2018 9:51 pm

!!!!YES!!!! Have used SUM Coverage and was paid out maximum amount of policy due to lifetime injury from auto accident. Never knew what it was but, first thing attorney asked how much SUM do you have? Other driver had lowest insurance allowed by state law and no assets so, no sense suing other driver who was ruled 100% at fault. Ending up suing my insurance company for SUM Policy Value. Never thought I would ever sue anyone in my lifetime!

Have since increased my SUM coverage to 1.5M. Most Non-Bogleheads are not driving with significant Liability coverage. Crazy we take Umbrella Policies in event we are sued. If we need to sue chances you are suing someone with limited means and liability coverage....the 99% verse 1% wealth distribution figures into this equation.

I own half dozen cars plus 5 drivers and paying over $1000 for additional 1M of SUM attached to Umbrella Policy have additional 500k on auto Policy. Probably will never use it but, worth de-risking for all poorly covered drivers on our roads. This way you can sue yourself if ever needed and collect.

Heard of another SUM case from my attorney. Driver hit in parking lot has permanent Injury to arm needing multiple surgeries. SUM coverage payout of 1M. Hope never need to use the coverage but peace of mind to have policy. Not a cheap policy but, now clearly understand the value. If you're ever in a serious accident with permanent disabilities this insurance will provide monetary compensation.

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Re: Should I be paying $1300/yr. for under/uninsured motorist protection?

Post by LadyGeek » Thu Feb 15, 2018 10:17 pm

I removed an off-topic rant about the insurance industry and a reply. Please stay on-topic and state your concerns in a civil, factual manner.
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Re: Should I be paying $1300/yr. for under/uninsured motorist protection?

Post by nashirak » Thu Feb 15, 2018 10:23 pm

We have two vehicles with UM/UIM set to 100/300/100. We pay about $120/year for that portion. We pay about $1100 for the year total for the two vehicles. I think you need to shop around or get a better agent.

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Re: Should I be paying $1300/yr. for under/uninsured motorist protection?

Post by Jags4186 » Thu Feb 15, 2018 10:39 pm

Yes carry it because it’s cheap. I pay $42 per 6 months for $100k/$300k underinsured injury and $100k in underinsured property damage coverage in NJ which has the highest car insurance rates in the country.

Look for a new insurance agent.

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Re: Should I be paying $1300/yr. for under/uninsured motorist protection?

Post by nodenuff2 » Thu Feb 15, 2018 10:40 pm

Ok so you would be ok without it. But it also covers others in your vehicles. For example grand children,friends,your mother. This coverage stands in the place of someone else’s coverage. You carry big limits to protect you from others in case you are at fault but don’t want to give the same protection for your loved ones? 42 years in the claims business gives me horror stories I could relate for days. Keep the coverage. Questions for your agent: 1. Does this coverage stack? 2. If I carry it on only one vehicle will it apply to the others ?
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BL
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Re: Should I be paying $1300/yr. for under/uninsured motorist protection?

Post by BL » Fri Feb 16, 2018 12:29 am

Perhaps the age of the third driver is making this more expensive. Is there a young driver?

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Re: Should I be paying $1300/yr. for under/uninsured motorist protection?

Post by tryingmybest » Fri Feb 16, 2018 1:13 am

To the other posters:
Why is under/uninsured motorist protection inexpensive? Is it subsidized (e.g. by the state or insurance companies)? If you have good health insurance for yourself and your family and rarely carry other passengers do you need it? Isn't this coverage secondary?

To the OP:
$1300/yr is too much. Are you sure this is not the price of the whole auto policy for the year?

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Re: Should I be paying $1300/yr. for under/uninsured motorist protection?

Post by sfchris » Fri Feb 16, 2018 3:25 am

On other boards, I have seen several lawyers post that it is the most important insurance to have... and it is not for medical coverage -- it is for lost income if you are permanently disabled.

I pay about $150/year for a million dollars UM from AAA. And premium umbrella insurance might extend it from there (not many do - umbrella insurance is not standardized).

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Re: Should I be paying $1300/yr. for under/uninsured motorist protection?

Post by boglerdude » Fri Feb 16, 2018 6:13 am

"Medical payments" is cheap coverage and pays up to 10k "no questions asked" to anyone in your car. Good for health insurance deductibles.

To collect Underinsured motorist you might have to fight your insurance company:
https://www.huffingtonpost.com/2012/08/ ... 75191.html

I haven't studied disability/life insurance, would that not be an easier way to collect lost future earnings?

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Re: Should I be paying $1300/yr. for under/uninsured motorist protection?

Post by tmcc » Fri Feb 16, 2018 6:18 am

UM in florida is extremely expensive. it can double an annual premium per vehicle easily. I pay $1400/yr for my main vehicle without UM. it was a touch over $2500 with UM for the last renewal.

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Re: Should I be paying $1300/yr. for under/uninsured motorist protection?

Post by Cigarman » Fri Feb 16, 2018 6:38 am

A quick google of this shows it is required in MA.

http://www.mass.gov/ago/consumer-resour ... rance.html

At least the uninsured part, not necessarily the underinsured. I would seriously shop this around, especially if your driving record is spotless.

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Re: Should I be paying $1300/yr. for under/uninsured motorist protection?

Post by Grasshopper » Fri Feb 16, 2018 7:19 am

I pay $48 a year under/uninsured $100K/$300K, I live 30 miles from Mexico and I drive to shop 1/2 mile from the border. Cheap insurance for me.

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Re: Should I be paying $1300/yr. for under/uninsured motorist protection?

Post by pshonore » Fri Feb 16, 2018 7:22 am

What is the total premium for this policy (BI/PD, Collision, Comp,etc)? $1300 could right for all that but even in MA which a lot of insurors avoid, thats outlandish for UM/UIM coverage. IN CT, I'm paying about $75/yr for 500k of UM/UIM BI.

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Re: Should I be paying $1300/yr. for under/uninsured motorist protection?

Post by pshonore » Fri Feb 16, 2018 7:48 am

tmcc wrote:
Fri Feb 16, 2018 6:18 am
UM in florida is extremely expensive. it can double an annual premium per vehicle easily. I pay $1400/yr for my main vehicle without UM. it was a touch over $2500 with UM for the last renewal.
That sounds awfully high, unless the majority of folks are driving without insurance. Does it cover does property damage to your vehicle? If you think about it, the premium for UM should be less than your own BI premium since they pay for roughly the same economic loss and the odds of getting hit by an uninsured driver should be a lot less.

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Re: Should I be paying $1300/yr. for under/uninsured motorist protection?

Post by tmcc » Fri Feb 16, 2018 7:58 am

pshonore wrote:
Fri Feb 16, 2018 7:48 am
tmcc wrote:
Fri Feb 16, 2018 6:18 am
UM in florida is extremely expensive. it can double an annual premium per vehicle easily. I pay $1400/yr for my main vehicle without UM. it was a touch over $2500 with UM for the last renewal.
That sounds awfully high, unless the majority of folks are driving without insurance. Does it cover does property damage to your vehicle? If you think about it, the premium for UM should be less than your own BI premium since they pay for roughly the same economic loss and the odds of getting hit by an uninsured driver should be a lot less.
yeah, the claim insurers like to make is that its very high. of course, I'm sure theyre making hand over fist on the premiums.

UM and property damage are separate coverages. I carry 500/250/250 for $1400. adding UM coverage nearly doubles that.

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Re: Should I be paying $1300/yr. for under/uninsured motorist protection?

Post by stats99 » Fri Feb 16, 2018 8:05 am

I'd check further into the "medical" coverage and if it is duplicative to your other health care coverage. in NJ, we routinely waive medical coverage as it was a major factor in extraordinarily high insurance rates in the state.

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Re: Should I be paying $1300/yr. for under/uninsured motorist protection?

Post by pshonore » Fri Feb 16, 2018 8:21 am

stats99 wrote:
Fri Feb 16, 2018 8:05 am
I'd check further into the "medical" coverage and if it is duplicative to your other health care coverage. in NJ, we routinely waive medical coverage as it was a major factor in extraordinarily high insurance rates in the state.
There is a lot of misunderstanding about auto insurance. Medical payments coverage provides payments for you and you passengers regardless of fault or liability. It is cheap! $40 per year in CT for 5K of coverage. Though, I will say all the "little extras" can add up.

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Re: Should I be paying $1300/yr. for under/uninsured motorist protection?

Post by lazydavid » Fri Feb 16, 2018 9:23 am

bottlecap wrote:
Thu Feb 15, 2018 6:15 pm
UM/UIM is typically cheap. $1,300 a year sounds way out of whack, even if premiums do very by state.

We pay $1,000 per year total for two cars and two drivers for all our car insurance, with maximum UM/UIM.

Might be time for you to shop around.

JT
Definitely shop around. Our total policy cost is well under $1,300 for three cars and three drivers on two separate policies, with the state maximums (or at least what used to be the maximums, might have been raised since) in all categories. Paying that much just for UIM is insane.

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Re: Should I be paying $1300/yr. for under/uninsured motorist protection?

Post by JBTX » Fri Feb 16, 2018 9:42 am

$1300 sounds extremely expensive for this coverage. Shop around.

Years ago I had read that close to 50% of drivers in Miami were uninsured.

As others have stated it isn’t medical coverage per se it coverage to replace the liability coverage of the uninsured driver. If you get hurt and can’t work or have other expenses you would have chance to recover. If you have robust medical and robust disability insurance your need for it may be less but those are not 100% replacement.

You typically have uninsured liability and uninsured property damage. The liability is for if you or others in your car get hurt. The property damage is if your vehicle suffers damage due to an uninsured driver. If you have collision and comreshensive coverage then the uninsured property damage is partially redundant although it likely has lower deductible. At times in the past I have dropped uninsured property damage.

A few years ago I got hit by an uninsured driver with no license. I didn’t have uninsured property damage. My collision covered my damage but at a $1000 deductible. It would have been $250 deductible for uninsured property damage. I later added that coverage back. While I can afford that loss it is really irritating to suffer a financial loss through no fault of your own.

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Re: Should I be paying $1300/yr. for under/uninsured motorist protection?

Post by westrichj312 » Fri Feb 16, 2018 9:47 am

If you have comp and your own medical insurance your being sold something you absolutely don't need and never will use or get your monies worth!

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Re: Should I be paying $1300/yr. for under/uninsured motorist protection?

Post by wilshuer » Fri Feb 16, 2018 9:52 am

Seems very high as others have said. Haven't looked what mine is this year, however last year it was ~$80 for two vehicles. I always thought it was a waste and my comp/collision would cover if needed. When I changed insurance a few years ago to current company, I went ahead and paid it - glad I did.

Last year my wife and I were both hit by uninsured drivers. In both cases minor damage that was just over $1000-1250. What was frustrating was the $250 deductible, so out $500 total. What was good is that - at least in my state - the claim cannot count against you, where a comp/collision claim would. The other part is that the insurance company will go after the uninsured party to recoup their claims, and if enough recovered, you'll get your $250 back. I'm not holding my breath, but at least they're handling the legal aspects of going after the other party.

The other part it covered was a rental car during repairs, in my comp/collision coverage there isn't rental coverage.

Things to consider, but going through it twice last year, I don't think I'll ever forgo it in the future. Frustrating though that the state can't do more for uninsured. Especially in both cases, the other party had 'proof of insurance' however when claim was filed, in both cases the insurance was not active.

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Re: Should I be paying $1300/yr. for under/uninsured motorist protection?

Post by Wagnerjb » Fri Feb 16, 2018 11:19 am

Small Law Survivor wrote:
Thu Feb 15, 2018 4:35 pm

I don't think I need this - any advice on cutting this from our policy?
I canceled my under/uninsured motorist coverage quite a few years ago. My logic was that a) I have good medical coverage for my family and b) Comprehensive (or is it Collision?) will cover my car if it is damaged.

A few months ago my son (who is on our policy) got hit by an uninsured motorist. There were no injuries, but his car was totaled. The accident was clearly the fault of the other driver (not my son) and all parties agree on that. My policy (Allstate) paid the claim under Comprehensive for his car being totaled, less my $1,000 deductible. What I learned was that my son is charged for the accident on the insurance record, because Allstate had to pay out. (This is not a blemish on his state driving record, but counts as a charged accident with Allstate). Thus our rates will rise at the next renewal. I probably knew this upfront, but I now know for sure.

I have saved a considerable amount of money for the years when I didn't pay for Uninsured Motorist coverage on all four of our cars. I am now giving some of that savings back.

After the accident, why wife and I decided to add Uninsured Motorist coverage temporarily until my son graduates from college and is on his own. Our concern was that - if he has another accident under which Allstate pays out - his insurance record will have multiple blemishes and it will be either harder or more expensive for him to find his own insurance coverage. Once he graduates, we will remove Uninsured Motorist coverage again.

Best wishes.
Andy

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Re: Should I be paying $1300/yr. for under/uninsured motorist protection?

Post by tmcc » Fri Feb 16, 2018 11:58 am

if he gets in an accident when you have UM, you still get dinged with go forward rates. UM doesn't preclude them from upcharging you in the future.

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Re: Should I be paying $1300/yr. for under/uninsured motorist protection?

Post by bottlecap » Fri Feb 16, 2018 12:04 pm

westrichj312 wrote:
Fri Feb 16, 2018 9:47 am
If you have comp and your own medical insurance your being sold something you absolutely don't need and never will use or get your monies worth!
If you don't value things like walking, you might be correct. Otherwise, you are not correct. Then buy some cheap insurance.

JT

wilshuer
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Re: Should I be paying $1300/yr. for under/uninsured motorist protection?

Post by wilshuer » Fri Feb 16, 2018 12:15 pm

tmcc wrote:
Fri Feb 16, 2018 11:58 am
if he gets in an accident when you have UM, you still get dinged with go forward rates. UM doesn't preclude them from upcharging you in the future.
Depends on state law. And, in fact my renewal for this year dropped a few dollars.

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dm200
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Re: Should I be paying $1300/yr. for under/uninsured motorist protection?

Post by dm200 » Fri Feb 16, 2018 12:21 pm

Wagnerjb wrote:
Fri Feb 16, 2018 11:19 am
Small Law Survivor wrote:
Thu Feb 15, 2018 4:35 pm
I don't think I need this - any advice on cutting this from our policy?
I canceled my under/uninsured motorist coverage quite a few years ago. My logic was that a) I have good medical coverage for my family and b) Comprehensive (or is it Collision?) will cover my car if it is damaged.
A few months ago my son (who is on our policy) got hit by an uninsured motorist. There were no injuries, but his car was totaled. The accident was clearly the fault of the other driver (not my son) and all parties agree on that. My policy (Allstate) paid the claim under Comprehensive for his car being totaled, less my $1,000 deductible. What I learned was that my son is charged for the accident on the insurance record, because Allstate had to pay out. (This is not a blemish on his state driving record, but counts as a charged accident with Allstate). Thus our rates will rise at the next renewal. I probably knew this upfront, but I now know for sure.
I have saved a considerable amount of money for the years when I didn't pay for Uninsured Motorist coverage on all four of our cars. I am now giving some of that savings back.
After the accident, why wife and I decided to add Uninsured Motorist coverage temporarily until my son graduates from college and is on his own. Our concern was that - if he has another accident under which Allstate pays out - his insurance record will have multiple blemishes and it will be either harder or more expensive for him to find his own insurance coverage. Once he graduates, we will remove Uninsured Motorist coverage again.
Best wishes.
I don't think so. The claim must have been paid under "Collision" and not "Comprehensive".

What is he had been very, very seriously injured? The blemishes on the driving/claim record would be "noise level".

TSR
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Re: Should I be paying $1300/yr. for under/uninsured motorist protection?

Post by TSR » Fri Feb 16, 2018 12:43 pm

First, your coverage costs way too much. This should add at most $100/year/driver, unless your situation is very unusual.

Second, I'm a lawyer. This coverage is very important for everyone, everywhere.

Let's say you have a passenger in your car, and that passenger is permanently disabled in an accident that was not your fault. Your insurance will cover your passenger's medical bills up to a certain point (assuming you pay for that coverage), but it will not cover lost income, pain and suffering, etc. Your passenger will want to sue the other driver, but if that driver has no insurance then they will look for whatever deep pockets are available -- that will be your insurance company. Then you'll start having long conversations (also known as depositions) about what you were doing at the time of the accident, when you had last used your phone etc. Maybe you'll prevail in court, maybe you won't, but you'll wish you had uninsured motorist coverage no matter what.

Medical coverage absolutely will not cover you, your family, your friends, or whoever else for the things you really need once your medical coverage pays after that person is paralyzed or permanently disabled. A close friend was in this very position, and the fact that she is able to afford to continue living her life after an accident was due entirely to her uninsured motorist coverage. I have no doubt that she would have given up if not for that.

To those of you saying that you might have to fight your insurance company, this is correct. My friend did. But do you think that the same is not also true of long-term disability coverage? They don't want to pay you either.

Consider that there are approximately 12.5 million undocumented immigrants in this country, the laws of most states do not allow undocumented immigrants to get drivers licenses, and thus most such undocumented immigrants cannot get insurance. So that's maybe three or four out of every 100 drivers in this country who are legally barred from having insurance. Now consider the many people who simply cannot afford insurance and go without. We get up to somewhere between 10 and 15% of all drivers having no insurance. You really want to take that risk?

I am all in favor of self-insuring. Indeed, I don't carry collision coverage because I can pay for another car out of pocket. But since I don't have an extra million dollars in cash lying around, I don't assume that I can cover 20 years of in-home care for a passenger who is paralyzed by an uninsured motorist. YMMV.

Wagnerjb
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Re: Should I be paying $1300/yr. for under/uninsured motorist protection?

Post by Wagnerjb » Fri Feb 16, 2018 12:44 pm

dm200 wrote:
Fri Feb 16, 2018 12:21 pm


What if he had been very, very seriously injured?
Our medical insurance would have paid.
Andy

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