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Auto Insurance Questions

Posted: Mon Jul 30, 2018 11:37 am
by markettracker
I am trying to decipher what kind of auto insurance is necessary for me. I should mention that in addition to auto insurance I have an umbrella policy. I also live in a state where there is a minimum personal injury protection coverage.

My fundamental question is whether I need any of the following add-ons (via Geico) given that I already have an umbrella policy:
  • Optional Basic Economic Loss: An optional coverage that pays certain expenses such as health care expenses, lost earnings, or rehabilitation.
  • Additional Personal Injury Protection
  • Supplementary Uninsured Motorist

Re: Auto Insurance Questions

Posted: Mon Jul 30, 2018 11:43 am
by doneat53
In my world... I have two teenage sons. They are the biggest risk and liability on my auto insurance policy and why I have an umbrella as well. So the answer to your question is one of risk tolerance and depends on whether your risk profile includes teenage drivers.

Re: Auto Insurance Questions

Posted: Mon Jul 30, 2018 11:58 am
by markettracker
doneat53 wrote:
Mon Jul 30, 2018 11:43 am
In my world... I have two teenage sons. They are the biggest risk and liability on my auto insurance policy and why I have an umbrella as well. So the answer to your question is one of risk tolerance and depends on whether your risk profile includes teenage drivers.
It does not

Re: Auto Insurance Questions

Posted: Mon Jul 30, 2018 12:11 pm
by doneat53
It does not
Then I would tend to say "no" you don't need those extra coverages but if it were me, I'd call geico and propose the scenario to them... ie "It seems to me that my umbrella policy should kick in if the personal injury on my auto insurance isn't enough... is that your interpretation?" and "Can you tell me any reason to consider having both an umbrella and the additional personal injury?" It seems a lot of times these contracts are so complicated that it is difficult to be sure up front what you will be covered for.

My risk tolerance seems to be comparatively high to some on this board... I'd probably even consider not having an umbrella in your situation but that's me. The caveat there is MY umbrella is quite expensive (800/yr for 2M) and that's because I have teenage drivers, one with a fender bender already on his record. Yours is probably much cheaper and relatively speaking a "deal" for the increased security it gives you.

Re: Auto Insurance Questions

Posted: Mon Jul 30, 2018 12:17 pm
by mountains
Some umbrella policies require a minimum amount of underlying insurance (usually homeowners or auto). Mine does. So you want to check your umbrella insurance

Re: Auto Insurance Questions

Posted: Mon Jul 30, 2018 12:21 pm
by pshonore
Umbrella policies usually pay for a claim against you. My guess (without looking in detail at Geico's website) is those coverages you mentioned protect you from uninsured or underinsured drivers who are at fault.

Re: Auto Insurance Questions

Posted: Mon Jul 30, 2018 12:28 pm
by HereToLearn
doneat53 wrote:
Mon Jul 30, 2018 12:11 pm
It does not

My risk tolerance seems to be comparatively high to some on this board... I'd probably even consider not having an umbrella in your situation but that's me. The caveat there is MY umbrella is quite expensive (800/yr for 2M) and that's because I have teenage drivers, one with a fender bender already on his record. Yours is probably much cheaper and relatively speaking a "deal" for the increased security it gives you.
I assume you priced umbrella with HO & Auto carries? I priced with GEICO, and umbrella was very high, so I placed it with HO, leaving auto with GEICO.

Re: Auto Insurance Questions

Posted: Mon Jul 30, 2018 5:03 pm
by golfCaddy
Do you need UM/UIM? On one extreme, there are posters who say it's useless if you have adequate health/life/disability insurance. On the other extreme, there are posters who argue everyone should want as much pain and suffering compensation as possible, without ever quite explaining why auto accidents are the only event in life which necessitates pain and suffering insurance. My middle view is disability insurance rarely covers 100% of your income. It may be difficult or impossible to get meaningful life/disability insurance for a SAHS or disability insurance for a child. If you are paralyzed, health/life/disability insurance won't pay to remodel a home to be handicap accessible or provide for caretakers. I buy UM/UIM insurance, although I respect the viewpoint it can be a lot like dread disease insurance.

Re: Auto Insurance Questions

Posted: Mon Jul 30, 2018 5:25 pm
by dm200
golfCaddy wrote:
Mon Jul 30, 2018 5:03 pm
Do you need UM/UIM? On one extreme, there are posters who say it's useless if you have adequate health/life/disability insurance. On the other extreme, there are posters who argue everyone should want as much pain and suffering compensation as possible, without ever quite explaining why auto accidents are the only event in life which necessitates pain and suffering insurance. My middle view is disability insurance rarely covers 100% of your income. It may be difficult or impossible to get meaningful life/disability insurance for a SAHS or disability insurance for a child. If you are paralyzed, health/life/disability insurance won't pay to remodel a home to be handicap accessible or provide for caretakers. I buy UM/UIM insurance, although I respect the viewpoint it can be a lot like dread disease insurance.
Here UM/UIM is required. If you have a choice - I believe it is vital - with all the uninsured and underinsured drivers out there.

Re: Auto Insurance Questions

Posted: Mon Jul 30, 2018 5:34 pm
by pshonore
dm200 wrote:
Mon Jul 30, 2018 5:25 pm
golfCaddy wrote:
Mon Jul 30, 2018 5:03 pm
Do you need UM/UIM? On one extreme, there are posters who say it's useless if you have adequate health/life/disability insurance. On the other extreme, there are posters who argue everyone should want as much pain and suffering compensation as possible, without ever quite explaining why auto accidents are the only event in life which necessitates pain and suffering insurance. My middle view is disability insurance rarely covers 100% of your income. It may be difficult or impossible to get meaningful life/disability insurance for a SAHS or disability insurance for a child. If you are paralyzed, health/life/disability insurance won't pay to remodel a home to be handicap accessible or provide for caretakers. I buy UM/UIM insurance, although I respect the viewpoint it can be a lot like dread disease insurance.
Here UM/UIM is required. If you have a choice - I believe it is vital - with all the uninsured and underinsured drivers out there.
As a person who spent a long time in the insurance industry, I can guarantee that auto accidents are not only event that involves pain and suffering, but your point is well taken nonetheless.

Re: Auto Insurance Questions

Posted: Tue Jul 31, 2018 6:24 am
by markettracker
doneat53 wrote:
Mon Jul 30, 2018 12:11 pm
It does not
Then I would tend to say "no" you don't need those extra coverages but if it were me, I'd call geico and propose the scenario to them... ie "It seems to me that my umbrella policy should kick in if the personal injury on my auto insurance isn't enough... is that your interpretation?" and "Can you tell me any reason to consider having both an umbrella and the additional personal injury?" It seems a lot of times these contracts are so complicated that it is difficult to be sure up front what you will be covered for.

My risk tolerance seems to be comparatively high to some on this board... I'd probably even consider not having an umbrella in your situation but that's me. The caveat there is MY umbrella is quite expensive (800/yr for 2M) and that's because I have teenage drivers, one with a fender bender already on his record. Yours is probably much cheaper and relatively speaking a "deal" for the increased security it gives you.
Good suggestion, thank you

Re: Auto Insurance Questions

Posted: Tue Jul 31, 2018 6:26 am
by markettracker
pshonore wrote:
Mon Jul 30, 2018 12:21 pm
Umbrella policies usually pay for a claim against you. My guess (without looking in detail at Geico's website) is those coverages you mentioned protect you from uninsured or underinsured drivers who are at fault.
Gotcha - yes, those benefits I listed cover me and my passengers.

Re: Auto Insurance Questions

Posted: Tue Jul 31, 2018 6:26 am
by markettracker
golfCaddy wrote:
Mon Jul 30, 2018 5:03 pm
Do you need UM/UIM? On one extreme, there are posters who say it's useless if you have adequate health/life/disability insurance. On the other extreme, there are posters who argue everyone should want as much pain and suffering compensation as possible, without ever quite explaining why auto accidents are the only event in life which necessitates pain and suffering insurance. My middle view is disability insurance rarely covers 100% of your income. It may be difficult or impossible to get meaningful life/disability insurance for a SAHS or disability insurance for a child. If you are paralyzed, health/life/disability insurance won't pay to remodel a home to be handicap accessible or provide for caretakers. I buy UM/UIM insurance, although I respect the viewpoint it can be a lot like dread disease insurance.
My state has a minimum, but geico offers supplemental. Not sure if I really need it though.

Re: Auto Insurance Questions

Posted: Wed Aug 01, 2018 9:19 pm
by golfCaddy
markettracker wrote:
Tue Jul 31, 2018 6:26 am
golfCaddy wrote:
Mon Jul 30, 2018 5:03 pm
Do you need UM/UIM? On one extreme, there are posters who say it's useless if you have adequate health/life/disability insurance. On the other extreme, there are posters who argue everyone should want as much pain and suffering compensation as possible, without ever quite explaining why auto accidents are the only event in life which necessitates pain and suffering insurance. My middle view is disability insurance rarely covers 100% of your income. It may be difficult or impossible to get meaningful life/disability insurance for a SAHS or disability insurance for a child. If you are paralyzed, health/life/disability insurance won't pay to remodel a home to be handicap accessible or provide for caretakers. I buy UM/UIM insurance, although I respect the viewpoint it can be a lot like dread disease insurance.
My state has a minimum, but geico offers supplemental. Not sure if I really need it though.
It some ways it mirrors the debate about LTC. If you were paralyzed in an auto accident, how would you get taken care of? Some people have family willing to step in and provide support, either financial or direct care. Others trust in the government safety net of Medicaid. Others are sitting on $4M+ and can self insure, against almost any contingency. Then, there's some middle, which finds it prudent to purchase insurance.