Is uninsured motor vehicle insurance a good idea?

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tc101
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Is uninsured motor vehicle insurance a good idea?

Post by tc101 »

Is uninsured motor vehicle insurance a good idea? I
. | The most important thing you should know about me is that I am not an expert.
bh1
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Re: Is uninsured motor vehicle insurance a good idea?

Post by bh1 »

If you are hit and run by a 4-ton truck, you won't have an issue with paying for the associated medical costs of you and your passengers?
Silk McCue
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Re: Is uninsured motor vehicle insurance a good idea?

Post by Silk McCue »

I think uninsured/underinsured coverage is crucial given the number of folks on the road that fit that category.

Accident lawyers certainly recommend it to protect yourself. They know very well that they can’t help you very much when you are hit by and badly hurt by an uninsured/uninsured driver.

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SavinMaven
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Re: Is uninsured motor vehicle insurance a good idea?

Post by SavinMaven »

9 months ago I was rear-ended by an uninsured motorist. It caused $11k in damage to my car. Thankfully no medical expenses for me or the passenger. But yes, I'm going to have to say it was a good idea. I could have sued the uninsured driver, but I bet if I had, we'd still be in court, and I wouldn't have a penny from him yet, if ever. Having uninsured motorist coverage, my car's been fully fixed for 7 months.
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nedsaid
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Re: Is uninsured motor vehicle insurance a good idea?

Post by nedsaid »

SavinMaven wrote: Mon Jun 26, 2023 4:57 pm 9 months ago I was rear-ended by an uninsured motorist. It caused $11k in damage to my car. Thankfully no medical expenses for me or the passenger. But yes, I'm going to have to say it was a good idea. I could have sued the uninsured driver, but I bet if I had, we'd still be in court, and I wouldn't have a penny from him yet, if ever. Having uninsured motorist coverage, my car's been fully fixed for 7 months.
Yep, if a person is irresponsible enough to drive without insurance then he or she is likely irresponsible in other areas of life. If a person doesn't have auto insurance, it is an indication they have little in assets. Your likelihood of collecting on a lawsuit would be very slim indeed.
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Doom&Gloom
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Re: Is uninsured motor vehicle insurance a good idea?

Post by Doom&Gloom »

It's better than an American Express card--especially in the Land of the Uninsured where I live.
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FelixTheCat
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Re: Is uninsured motor vehicle insurance a good idea?

Post by FelixTheCat »

I was in a three-car accident and the at-fault driver had the minimum coverage allowed by state law. My uninsured/underinsured coverage protected me.
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sport
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Re: Is uninsured motor vehicle insurance a good idea?

Post by sport »

SavinMaven wrote: Mon Jun 26, 2023 4:57 pm 9 months ago I was rear-ended by an uninsured motorist. It caused $11k in damage to my car. Thankfully no medical expenses for me or the passenger. But yes, I'm going to have to say it was a good idea. I could have sued the uninsured driver, but I bet if I had, we'd still be in court, and I wouldn't have a penny from him yet, if ever. Having uninsured motorist coverage, my car's been fully fixed for 7 months.
Uninsured motorist insurance is different in different states. In my state, my collision coverage will pay for damage to my vehicle regardless of who is at fault. The UI coverage is only for personal injury. If one does not have collision coverage, I believe they can get UI property damage separately.
eigenperson
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Re: Is uninsured motor vehicle insurance a good idea?

Post by eigenperson »

Yes.

Your liability insurance covers any damage you might do to another driver, up to the limit. If you have a limit of $X, clearly you feel it is possible to do at least $X in damage, and that you need to be insured against that.

Well, if you can do $X in damage to someone else, they can just as easily do $X in damage to you. But they might not have a limit of $X. They might have chosen a much lower limit.

So the question is this. For damage someone else does to you, do you want them to choose the limit of coverage, or do you want to choose it? If you want to choose, buy uninsured motorist insurance up to your liability limit. It's generally fairly priced, and pretty cheap.
AS7911
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Re: Is uninsured motor vehicle insurance a good idea?

Post by AS7911 »

FelixTheCat wrote: Mon Jun 26, 2023 5:04 pm I was in a three-car accident and the at-fault driver had the minimum coverage allowed by state law. My uninsured/underinsured coverage protected me.
other than possibly a slightly larger deductible, wouldn't your collision insurance also have covered you?
KneePartsPro
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Re: Is uninsured motor vehicle insurance a good idea?

Post by KneePartsPro »

Worth it. I’ve been hit by two uninsured motorists. Both times my vehicle was totaled. Both times they were at fault. Neither time was there any chance of recourse. Neither driver had a license. Neither driver had a job. Neither driver owned the car they were driving. Neither driver provided a real address.
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Re: Is uninsured motor vehicle insurance a good idea?

Post by AS7911 »

KneeReplacementTutor wrote: Mon Jun 26, 2023 5:49 pm Worth it. I’ve been hit by two uninsured motorists. Both times my vehicle was totaled. Both times they were at fault. Neither time was there any chance of recourse. Neither driver had a license. Neither driver had a job. Neither driver owned the car they were driving. Neither driver provided a real address.
same question as the for the other poster... other than a slightly larger deductible, wouldnt your collision have covered you?
KneePartsPro
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Re: Is uninsured motor vehicle insurance a good idea?

Post by KneePartsPro »

arf1410 wrote: Mon Jun 26, 2023 5:58 pm
KneeReplacementTutor wrote: Mon Jun 26, 2023 5:49 pm Worth it. I’ve been hit by two uninsured motorists. Both times my vehicle was totaled. Both times they were at fault. Neither time was there any chance of recourse. Neither driver had a license. Neither driver had a job. Neither driver owned the car they were driving. Neither driver provided a real address.
same question as the for the other poster... other than a slightly larger deductible, wouldnt your collision have covered you?
I’m not sure. In both cases I had liability only coverage ( the first was when I was working my way through undergrad. The second was early in my career. Both times I was driving vehicles that didn’t have much monetary value although they were incredibly valuable to me.) It was my understanding at the time that my collision coverage (if I’d had it) would not have covered my vehicle if the other driver was at fault. What I know for sure is that neither time was I in a position to pony up the cash for another vehicle yet I couldn’t do without one either.
Last edited by KneePartsPro on Tue Jun 27, 2023 7:52 am, edited 1 time in total.
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Re: Is uninsured motor vehicle insurance a good idea?

Post by hammockhiker »

tc101 wrote: Mon Jun 26, 2023 4:22 pm Is uninsured motor vehicle insurance a good idea? I
Absolutely. And I say that because my wife's car last week was rear-ended by a 16-year-old. Yesterday the insurance adjuster for the boy's family called us to say that there may be a problem: no insurance coverage on the car the boy was driving. We have uninsured coverage, so at least I'm confident our car will be repaired. (There were no injuries)
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Moneybags1
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Re: Is uninsured motor vehicle insurance a good idea?

Post by Moneybags1 »

In March I dropped mine. I had 100/300/100 Liability and 50/100 uninsured for a little over $300 for 6 mos. The uninsured was nearly $100 of the premium driving the bulk of the increases. I found I could drop the uninsured, raise my Liability to 250/500/250 and save $70 and that is what I did. If you have Health Insurance, Medicare etc you don't need it, however I have a high deductible ($7k). I live in Florida where uninsured rates are high and Liability requirements are a mere $20k which many carry, hardly enough, I drive 5000 miles per year and my truck is 21yrs old. I will admit I wasn't aware uninsured coverage covered a vehicle damage w/o full coverage. I feel taking a calculated risk, raising my liability while saving money therefore adding to the price spiral of uninsured coverage is worth the risk having been in one accident in over 40 yrs of driving caused by a spaced out insured old lady running a red light.. The state refuses to fix the problem as it is busy with other more important legislation.
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bottlecap
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Re: Is uninsured motor vehicle insurance a good idea?

Post by bottlecap »

UM/UIM is pretty cheap. I wouldn’t go without it, even if collision covered the property damage. If you are injured, disabled, or out of work for even a short time, that’s going to cost you money. If you have children, it would cover them as well.

Everyone's trying to save a buck until they’re hit by an uninsured or underinsured motorist. Then they gripe about how much of an injustice it is. Save yourself the headache.

Good luck,

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Re: Is uninsured motor vehicle insurance a good idea?

Post by NYCaviator »

tc101 wrote: Mon Jun 26, 2023 4:22 pm Is uninsured motor vehicle insurance a good idea? I
Yes. If someone is irresponsible enough to engage in dangerous driving that is likely to injure someone else (drinking, texting, excessive speed, etc.) they probably aren’t responsible enough to have good insurance coverage. In many states uninsured also covers underinsured. It’s worth it to protect yourself. The odds of the habitual drunk driver having anything more than a minimum policy are slim…

It seems like there are WAY more dangerous drivers on the road these days than I’ve ever experienced. Don’t rely on others to be responsible and have enough insurance.
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Re: Is uninsured motor vehicle insurance a good idea?

Post by pshonore »

hammockhiker wrote: Tue Jun 27, 2023 4:19 am
tc101 wrote: Mon Jun 26, 2023 4:22 pm Is uninsured motor vehicle insurance a good idea? I
Absolutely. And I say that because my wife's car last week was rear-ended by a 16-year-old. Yesterday the insurance adjuster for the boy's family called us to say that there may be a problem: no insurance coverage on the car the boy was driving. We have uninsured coverage, so at least I'm confident our car will be repaired. (There were no injuries)
That depends on where you live. UIM usually refers to Bodily Injury. In some states UIM is also available for "Physical damage". Of course If you have collision coverage your car will be always be repaired minus the deductible.
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Re: Is uninsured motor vehicle insurance a good idea?

Post by InvisibleAerobar »

In many states, UM/UIM insurance also kicks in if one, while walking or cycling, is struck by an UM/UIM driver.

The UM/UIM would then go to pay for at least out-of-pocket expenses and any treatment not fully covered by insurance (e.g. a few broken teeth, prolonged therapy, etc.)
AS7911
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Re: Is uninsured motor vehicle insurance a good idea?

Post by AS7911 »

Almost all posts say of course it's worth it, but no one has provided a real case where it was of benefit to someone who has also collision and good medical insurance. My agent suggested to drop ours.
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JoMoney
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Re: Is uninsured motor vehicle insurance a good idea?

Post by JoMoney »

I have other medical insurance, and the coverage for damage to my car is limited to $3,500 under a uninsured motorists claim.
If my car's value was $3,500 I would only have liability coverage, as it is my deductible on collision/comprehensive is pretty close to that.
There's a wide range of people's "risk aversion", my impression of Boglehead's is pretty "risk averse" so it doesn't surprise me how much insurance is promoted.
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Re: Is uninsured motor vehicle insurance a good idea?

Post by niagara_guy »

A friend was involved in a 4 car accident with one fatality (the person at fault). The insurance for the at fault driver was completely used up, so my friend's uninsured/under insured motorist kicked in, he had to sue his own insurance company, this was for personal injury (I believe the un/under insured rules vary by state), his insurance paid his and his family's claims.
safari
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Re: Is uninsured motor vehicle insurance a good idea?

Post by safari »

I don't carry the uninsured motorist coverage because physical damage to my car caused by an uninsured driver is included under my collision coverage, which also has the uninsured motorist deductible waver. That means I wouldn't have to pay the deductible to fix my car, if it were hit by an uninsured driver. I am in CA.
Globalviewer58
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Re: Is uninsured motor vehicle insurance a good idea?

Post by Globalviewer58 »

1 of every 8 drivers in USA is uninsured. This varies by locale but you get the idea. Do you feel lucky?
wrendan
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Re: Is uninsured motor vehicle insurance a good idea?

Post by wrendan »

tc101 wrote: Mon Jun 26, 2023 4:22 pm Is uninsured motor vehicle insurance a good idea? I
Control the things you can, insure against the rest.

You don’t control who decides to set out on the road - insure against the worst case scenario. IMO it’s well worth the extra $100/yr to not have to worry about that.
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Re: Is uninsured motor vehicle insurance a good idea?

Post by evancox10 »

I’m very interested in this discussion. I don’t currently have it because it doesn’t seem like it would really add anything.
bh1 wrote: Mon Jun 26, 2023 4:45 pm If you are hit and run by a 4-ton truck, you won't have an issue with paying for the associated medical costs of you and your passengers?
1) If I am liable for my passengers medical costs, then it would be my liability insurance paying out, naturally. The truck driver’s insurance or lack thereof wouldn’t come into it. (Obviously in a hit and run the other party is likely to be liable but suppose I did something dumb and it is my fault.)

2) If I am not liable, then:
A) collision insurance covers the cost of fixing the car. I can afford the deductible, which is all that UI/UM covers for property damage in my state.
B) for my own family’s medical costs, we have health insurance to cover those. We can afford the deductibles. It would “suck” but a $5k family deductible would not meaningfully impact my finances (thankfully).

Really the thing that worries me is something like, what if you are crippled for life and the other party has no insurance or just the $30k minimum insurance? (Commercial truck insurance minimum is probably higher but anyways you get the point.)

To me that’s really the scary scenario. You might be eligible for a huge, multi-hundred thousand $, if not multi-million $ award, but doesn’t matter if you can’t collect. I do have decent LTD which I think would cover much of what I would need to get by. Would it be enough to make my life financially comfortable? Maybe, maybe not.

(Do note that super large awards are very rare, most cases settle in the $10’s of thousands of dollar range.)

That is what I would be interested in, catastrophic UI/UM, but I don’t think it’s really optimized to provide cheap insurance for that. The bulk of people are more concerned with insuring against an unexpected $5k medical bill or what have you.
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Re: Is uninsured motor vehicle insurance a good idea?

Post by AS7911 »

Globalviewer58 wrote: Tue Jun 27, 2023 9:48 am 1 of every 8 drivers in USA is uninsured. This varies by locale but you get the idea. Do you feel lucky?
I dont feel lucky, that's why I have medical insurance, and collision insurance, if that uninsured person hits me.
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Re: Is uninsured motor vehicle insurance a good idea?

Post by evancox10 »

KneeReplacementTutor wrote: Mon Jun 26, 2023 6:25 pm
arf1410 wrote: Mon Jun 26, 2023 5:58 pm
KneeReplacementTutor wrote: Mon Jun 26, 2023 5:49 pm Worth it. I’ve been hit by two uninsured motorists. Both times my vehicle was totaled. Both times they were at fault. Neither time was there any chance of recourse. Neither driver had a license. Neither driver had a job. Neither driver owned the car they were driving. Neither driver provided a real address.
same question as the for the other poster... other than a slightly larger deductible, wouldnt your collision have covered you?
I’m not sure. In both cases I had liability only coverage ( the first was when I was working my way through undergrad. The second was early in my career. Both times I was driving vehicles that didn’t have much monetary value although they were incredibly valuable to me.) It was my understanding at the time that my collision coverage (if I’d had it) would not have covered my vehicle if the other driver was at fault. What I know for sure is that neither time was I in a position to pony up the cash for another vehicle yet I couldn’t do without one either.
In my state, collision always covers your car regardless of who is at fault. If the other driver is at fault, they will go after them and you get the deductible back if they can get it. If they can’t recover any money, that’s when UI/UM property insurance steps in. (And, at my insurer, only covers up to a $2.5k deductible! No more than than that.)

Check with your insurance agent about this if you aren’t sure. I’ve never heard of collision insurance not covering you in this case, the “regardless of who’s at fault” thing is kind of a bedrock of collision insurance AFAIK. But a few states do things very differently, maybe I’m not aware of these differences. Would be interested to hear from others who have confirmed this.
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Re: Is uninsured motor vehicle insurance a good idea?

Post by KneePartsPro »

evancox10 wrote: Tue Jun 27, 2023 12:27 pm
KneeReplacementTutor wrote: Mon Jun 26, 2023 6:25 pm
arf1410 wrote: Mon Jun 26, 2023 5:58 pm
KneeReplacementTutor wrote: Mon Jun 26, 2023 5:49 pm Worth it. I’ve been hit by two uninsured motorists. Both times my vehicle was totaled. Both times they were at fault. Neither time was there any chance of recourse. Neither driver had a license. Neither driver had a job. Neither driver owned the car they were driving. Neither driver provided a real address.
same question as the for the other poster... other than a slightly larger deductible, wouldnt your collision have covered you?
I’m not sure. In both cases I had liability only coverage ( the first was when I was working my way through undergrad. The second was early in my career. Both times I was driving vehicles that didn’t have much monetary value although they were incredibly valuable to me.) It was my understanding at the time that my collision coverage (if I’d had it) would not have covered my vehicle if the other driver was at fault. What I know for sure is that neither time was I in a position to pony up the cash for another vehicle yet I couldn’t do without one either.
In my state, collision always covers your car regardless of who is at fault. If the other driver is at fault, they will go after them and you get the deductible back if they can get it. If they can’t recover any money, that’s when UI/UM property insurance steps in. (And, at my insurer, only covers up to a $2.5k deductible! No more than than that.)

Check with your insurance agent about this if you aren’t sure…
It was quite some time ago and several insurance agents/companies ago. Pre Y2K. Since then I’ve become able to afford more than just the liability insurance I had back then. Happy to report we’ve not been hit by any underinsured or uninsured motorists since. Best insurance ever.
GeMoney
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Re: Is uninsured motor vehicle insurance a good idea?

Post by GeMoney »

Many years ago an uninsured driver backed into my car because she didn't look back when she saw a parking space even though I was honking at her as she was backing up. My damage was approx $1,500 and she offered to pay me $50/mo. Yeah right :shock: Thank goodness I had uninsured motorist coverage.
AS7911
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Re: Is uninsured motor vehicle insurance a good idea?

Post by AS7911 »

Still hoping someone can provide their experience of an actual case, where UIM provided coverage that would not have been covered by their other insurance (ie liability, or quality medical), beyond just a lower deductible.
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Re: Is uninsured motor vehicle insurance a good idea?

Post by JDave »

I worked in a trauma center emergency department. The number of drivers with no licence/insurance/suspended license/stolen car involved in serious accidents is a much higher percentage than the number of insured, licensed, car owners involved in serious accidents. I would never go without uninsured motorist coverage.

Something the general public is unaware of, but EMTs/paramedics are, is that it is fairly common to arrive at the site of a single car wreck, and find no one there. The driver/occupants fled because whatever they were up to was illegal.
AS7911
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Re: Is uninsured motor vehicle insurance a good idea?

Post by AS7911 »

JDave wrote: Wed Jun 28, 2023 5:06 pm I worked in a trauma center emergency department. The number of drivers with no licence/insurance/suspended license/stolen car involved in serious accidents is a much higher percentage than the number of insured, licensed, car owners involved in serious accidents. I would never go without uninsured motorist coverage.

Something the general public is unaware of, but EMTs/paramedics are, is that it is fairly common to arrive at the site of a single car wreck, and find no one there. The driver/occupants fled because whatever they were up to was illegal.
I agree with most of what you say, but best I can tell, if a person carries their own collision insurance and has good medical, uninsured motorist coverage gains one very little.... but I would like someone to provide a real example, that shows me I'm wrong!
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Re: Is uninsured motor vehicle insurance a good idea?

Post by eigenperson »

arf1410 wrote: Wed Jun 28, 2023 5:11 pm
JDave wrote: Wed Jun 28, 2023 5:06 pm I worked in a trauma center emergency department. The number of drivers with no licence/insurance/suspended license/stolen car involved in serious accidents is a much higher percentage than the number of insured, licensed, car owners involved in serious accidents. I would never go without uninsured motorist coverage.

Something the general public is unaware of, but EMTs/paramedics are, is that it is fairly common to arrive at the site of a single car wreck, and find no one there. The driver/occupants fled because whatever they were up to was illegal.
I agree with most of what you say, but best I can tell, if a person carries their own collision insurance and has good medical, uninsured motorist coverage gains one very little.... but I would like someone to provide a real example, that shows me I'm wrong!
In a really serious accident, the bulk of actual damages are not covered by medical insurance. Medical insurance does not cover long term care, lost income, home modifications to accommodate for your disability, loss of consortium, and so on.
AS7911
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Re: Is uninsured motor vehicle insurance a good idea?

Post by AS7911 »

eigenperson wrote: Wed Jun 28, 2023 5:16 pm
arf1410 wrote: Wed Jun 28, 2023 5:11 pm
JDave wrote: Wed Jun 28, 2023 5:06 pm I worked in a trauma center emergency department. The number of drivers with no licence/insurance/suspended license/stolen car involved in serious accidents is a much higher percentage than the number of insured, licensed, car owners involved in serious accidents. I would never go without uninsured motorist coverage.

Something the general public is unaware of, but EMTs/paramedics are, is that it is fairly common to arrive at the site of a single car wreck, and find no one there. The driver/occupants fled because whatever they were up to was illegal.
I agree with most of what you say, but best I can tell, if a person carries their own collision insurance and has good medical, uninsured motorist coverage gains one very little.... but I would like someone to provide a real example, that shows me I'm wrong!
In a really serious accident, the bulk of actual damages are not covered by medical insurance. Medical insurance does not cover long term care, lost income, home modifications to accommodate for your disability, loss of consortium, and so on.
While that may be theoretically true, unless one has UIM coverage limits in 500k or even $1M range, I dont see how there would be any money left for any of those things you mention. Via subrogation, your medical insurance will get in line before you, and get reimbursement for their expenses, leaving nothing left for those things you mention... which is why I want to see if someone can provide me a REAL example, not a theoretical example. For virtually every other type of insurance I can think of, someone on this forum has posted about a time when it actually helped them.
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Re: Is uninsured motor vehicle insurance a good idea?

Post by TexasPE »

arf1410 wrote: Tue Jun 27, 2023 8:00 am Almost all posts say of course it's worth it, but no one has provided a real case where it was of benefit to someone who has also collision and good medical insurance. My agent suggested to drop ours.
Wife hit by driver with state mandated minimum insurance, totaled her 6 month-old car. His insurer wrote her a check for the face value of their policy (less than the value of her car, nothing toward medical) and washed their hands of it. Our insurer made her a mid-five figure settlement for scarring and future medical issues (severe concussion, in hospital for two weeks) via her underinsured/ uninsured coverage.

Also, any medical claim that involves an accident is a hassle to pursue. Insurers don't want to pay for something that may be covered by a third-party.

Check your medical coverage before assuming that an accident will be covered (and what about your passengers?).
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Nicolas
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Re: Is uninsured motor vehicle insurance a good idea?

Post by Nicolas »

Yes and in fact I added it to my umbrella as well as on my auto insurance for a total of 1.5 million.
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Re: Is uninsured motor vehicle insurance a good idea?

Post by brokendirtdart »

You ever drive in New Hampshire?

No liability insurance is required for the majority here. No seatbelts either.

I still carry UIM insurance.
AS7911
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Re: Is uninsured motor vehicle insurance a good idea?

Post by AS7911 »

TexasPE wrote: Wed Jun 28, 2023 5:38 pm
arf1410 wrote: Tue Jun 27, 2023 8:00 am Almost all posts say of course it's worth it, but no one has provided a real case where it was of benefit to someone who has also collision and good medical insurance. My agent suggested to drop ours.
Wife hit by driver with state mandated minimum insurance, totaled her 6 month-old car. His insurer wrote her a check for the face value of their policy (less than the value of her car, nothing toward medical) and washed their hands of it. Our insurer made her a mid-five figure settlement for scarring and future medical issues (severe concussion, in hospital for two weeks) via her underinsured/ uninsured coverage.

Also, any medical claim that involves an accident is a hassle to pursue. Insurers don't want to pay for something that may be covered by a third-party.

Check your medical coverage before assuming that an accident will be covered (and what about your passengers?).
A few questions here -
- I've heard of life insurance companies denying a claim, if the death was due to certain high risk activities... but I have never heard of a health insurance company having that ability. Are you sure?
-If you are in the hospital after an accident, arent you going to provide your medical insurance info to them? Or can you provide your auto insurance, and not the medical? The hospital can / will directly bill an auto insurance?
-you signed away future medical liability? or is it still open? Did your settlement specifically state $X for scarring (likely yours to keep) and $Y for future medical care?
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greg24
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Re: Is uninsured motor vehicle insurance a good idea?

Post by greg24 »

Our 6 month cost for uninsured coverage: $4.75
Our 6 month cost for underinsured coverage: $11.87

Those prices make it easy to keep paying it.
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Re: Is uninsured motor vehicle insurance a good idea?

Post by TexasPE »

arf1410 wrote: Wed Jun 28, 2023 8:10 pm
TexasPE wrote: Wed Jun 28, 2023 5:38 pm
arf1410 wrote: Tue Jun 27, 2023 8:00 am Almost all posts say of course it's worth it, but no one has provided a real case where it was of benefit to someone who has also collision and good medical insurance. My agent suggested to drop ours.
Wife hit by driver with state mandated minimum insurance, totaled her 6 month-old car. His insurer wrote her a check for the face value of their policy (less than the value of her car, nothing toward medical) and washed their hands of it. Our insurer made her a mid-five figure settlement for scarring and future medical issues (severe concussion, in hospital for two weeks) via her underinsured/ uninsured coverage.

Also, any medical claim that involves an accident is a hassle to pursue. Insurers don't want to pay for something that may be covered by a third-party.

Check your medical coverage before assuming that an accident will be covered (and what about your passengers?).
A few questions here -
- I've heard of life insurance companies denying a claim, if the death was due to certain high risk activities... but I have never heard of a health insurance company having that ability. Are you sure? Over the years my wife has tripped twice - once at church and once at a private residence. In both incidents her medical insurer (different for each case) paid but then insisted on details to see if there were 'deep pockets' to go after.
-If you are in the hospital after an accident, arent you going to provide your medical insurance info to them? YES Or can you provide your auto insurance, and not the medical? The hospital can / will directly bill an auto insurance? Don't know
-you signed away future medical liability? YES or is it still open? Did your settlement specifically state $X for scarring (likely yours to keep) and $Y for future medical care? YES BUT WE HAD TO HIRE AN ATTORNEY TO FORCE OUR OWN INSURANCE TO SETTLE FOR A REASONABLE AMOUNT]
At 20: I cared what everyone thought about me | At 40: I didn't give a damn what anyone thought of me | Now that I'm 60: I realize that no one was really thinking about me at all | Winston Churchill (?)
eigenperson
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Re: Is uninsured motor vehicle insurance a good idea?

Post by eigenperson »

arf1410 wrote: Wed Jun 28, 2023 5:34 pm
eigenperson wrote: Wed Jun 28, 2023 5:16 pm
arf1410 wrote: Wed Jun 28, 2023 5:11 pm
JDave wrote: Wed Jun 28, 2023 5:06 pm I worked in a trauma center emergency department. The number of drivers with no licence/insurance/suspended license/stolen car involved in serious accidents is a much higher percentage than the number of insured, licensed, car owners involved in serious accidents. I would never go without uninsured motorist coverage.

Something the general public is unaware of, but EMTs/paramedics are, is that it is fairly common to arrive at the site of a single car wreck, and find no one there. The driver/occupants fled because whatever they were up to was illegal.
I agree with most of what you say, but best I can tell, if a person carries their own collision insurance and has good medical, uninsured motorist coverage gains one very little.... but I would like someone to provide a real example, that shows me I'm wrong!
In a really serious accident, the bulk of actual damages are not covered by medical insurance. Medical insurance does not cover long term care, lost income, home modifications to accommodate for your disability, loss of consortium, and so on.
While that may be theoretically true, unless one has UIM coverage limits in 500k or even $1M range, I dont see how there would be any money left for any of those things you mention. Via subrogation, your medical insurance will get in line before you, and get reimbursement for their expenses, leaving nothing left for those things you mention... which is why I want to see if someone can provide me a REAL example, not a theoretical example. For virtually every other type of insurance I can think of, someone on this forum has posted about a time when it actually helped them.
I do know one person who was hit by a car while biking and suffered a very serious traumatic brain injury. His damages from lost income would have maxed out any UIM policy. Yes, UIM covers you when you're not in your car (at least in every state I've lived in). Yes, the motorist in the case was underinsured. However, I do not know whether he actually had UIM and I am not going to ask the family members.

If I had been the victim in that accident, I would not be writing this post. I suspect many of the people who made huge claims on their UIM coverage are similarly unavailable for comment.

Also, why wouldn't you have the maximum possible limit? It's so easy for a car to cause $1M in damage. The only good answers I can come up with are "I can't afford it" and "$1M is nothing to me anyway," neither of which applies to the archetypal Boglehead.
AS7911
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Re: Is uninsured motor vehicle insurance a good idea?

Post by AS7911 »

With a TBI wouldn't the UIM have been maxed out paying the medical claim and therefore not had a nickel left to pay for lost income?
lazydavid
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Re: Is uninsured motor vehicle insurance a good idea?

Post by lazydavid »

eigenperson wrote: Thu Jun 29, 2023 7:04 am Also, why wouldn't you have the maximum possible limit? It's so easy for a car to cause $1M in damage. The only good answers I can come up with are "I can't afford it" and "$1M is nothing to me anyway," neither of which applies to the archetypal Boglehead.
Another answer is "I carry the minimum amounts required by my umbrella policy, which goes WAY higher than what is available under any auto policy". That's where we are. $250/500k allows us to have a $3M umbrella. Once we have that, taking the underlying policy to its limit of $500k/$1M accomplishes nothing additional.
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NavyIC3
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Re: Is uninsured motor vehicle insurance a good idea?

Post by NavyIC3 »

Also covers you if you are a pedestrian and hit by an UI motorist.
bombcar
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Re: Is uninsured motor vehicle insurance a good idea?

Post by bombcar »

Underinsured and uninsured coverage is about $22 a year for us.

I wonder if I can get rid of roadside assistance that’s apparently $8
KT785
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Re: Is uninsured motor vehicle insurance a good idea?

Post by KT785 »

lazydavid wrote: Thu Jun 29, 2023 8:05 am
eigenperson wrote: Thu Jun 29, 2023 7:04 am Also, why wouldn't you have the maximum possible limit? It's so easy for a car to cause $1M in damage. The only good answers I can come up with are "I can't afford it" and "$1M is nothing to me anyway," neither of which applies to the archetypal Boglehead.
Another answer is "I carry the minimum amounts required by my umbrella policy, which goes WAY higher than what is available under any auto policy". That's where we are. $250/500k allows us to have a $3M umbrella. Once we have that, taking the underlying policy to its limit of $500k/$1M accomplishes nothing additional.
For point of clarification, assume you're primarily talking about regular liability coverage, not UM/UIM? While some umbrella polices have an option to add excess UM/UIM coverage to an umbrella, it's quite uncommon now (and costly when available). I know RLI has the option, but in my experience, excess UM/UIM costs more than the underlying liability umbrella.

We carry $1 million/$1 million coverage on our primary auto policy to allow us to have those limits for UM/UIM (added cost over-and-above minimum to get the umbrella is minimal); we also carry a $1 million umbrella (no UM/UIM coverage).

One of the major considerations for us in increasing our UM/UIM coverage is the fact that I'm a runner and am concerned about increased risk exposure from that activity (as noted by others, the coverage follows you even if you're a pedestrian).

KT785
thatme
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Re: Is uninsured motor vehicle insurance a good idea?

Post by thatme »

My car insurance is clearly much more expensive than everyone else here - my UIM medical only coverage is more than $500/6 months. I assume it's having a teenage driver on my policy that is driving the astronomical cost but it's hard to say for certain. My wife had an at-fault accident about five years ago and that seems to still be "on her record", which obviously isn't helping things (she slid into the car in front of her on an icy road), but I might need to shop this around. Or is crazy expensive insurance just par for the course with a teenager?
AS7911
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Re: Is uninsured motor vehicle insurance a good idea?

Post by AS7911 »

I dropped when it reached $250 for 6 months for a low limit. How much coverage does $500 get you?
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TexasPE
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Re: Is uninsured motor vehicle insurance a good idea?

Post by TexasPE »

eigenperson wrote: Thu Jun 29, 2023 7:04 am
Also, why wouldn't you have the maximum possible limit? It's so easy for a car to cause $1M in damage. The only good answers I can come up with are "I can't afford it" and "$1M is nothing to me anyway," neither of which applies to the archetypal Boglehead.
+1

A friend's elderly father didn't hear a fire engine siren -and went through an intersection - it was a ladder truck - totaled. Replacement cost was $650,000., not counting injuries to the firemen.

I try not to be "penny-wise and pound-foolish".
At 20: I cared what everyone thought about me | At 40: I didn't give a damn what anyone thought of me | Now that I'm 60: I realize that no one was really thinking about me at all | Winston Churchill (?)
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