How much is insurance co. involved in UMPD claim?

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zeugmite
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Joined: Tue Jul 22, 2008 11:48 pm

How much is insurance co. involved in UMPD claim?

Post by zeugmite » Sun Jan 12, 2020 4:11 am

There have been some discussions of dropping collision coverage on older cars but, having searched the forum I couldn't find an answer to the following questions:

If collision is dropped and UMPD is kept instead, will my insurance company still be involved in the claims process at all? I mean, if collision coverage is there, they'd be involved all throughout the process, but with UMPD, initially it's not clear they have any skin in the game, but they might. There is the finding of fault, there is determination of the other party's coverage/whether it's sufficient, and then possibly the other party's insurance may deny the third-party claim or deny fault.

Is my insurance company going to help me out here in any of this, or will they say, "You don't have collision so there is nothing to file under?" And if they are involved, at what point do they drop out? Will they drop out as soon as it is determined the other party's coverage is sufficient, and I'll be left in the cold to pursue the third-party claim myself?

I am trying to figure out whether UMPD is worthy coverage for those eventually found to be not-at-fault cases, once collision is dropped. Keeping insurance company interest/involvement is a huge benefit, IMO.

Any insurance adjusters here or people with experience? For reference this is in CA, which provides $3500 in UMPD, below the state-mandated $5000 minimum PD liability coverage.

TheGreyingDuke
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Re: How much is insurance co. involved in UMPD claim?

Post by TheGreyingDuke » Sun Jan 12, 2020 3:31 pm

UMPD?
Uninsured motorist protection ??
"Every time I see an adult on a bicycle, I no longer despair for the future of the human race." H.G. Wells

Topic Author
zeugmite
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Joined: Tue Jul 22, 2008 11:48 pm

Re: How much is insurance co. involved in UMPD claim?

Post by zeugmite » Sun Jan 12, 2020 10:55 pm

TheGreyingDuke wrote:
Sun Jan 12, 2020 3:31 pm
UMPD?
Uninsured motorist protection ??
Uninsured (sometimes underinsured?) motorist property damage.

jbmitt
Posts: 499
Joined: Mon Jul 14, 2008 1:00 am

Re: How much is insurance co. involved in UMPD claim?

Post by jbmitt » Sun Jan 12, 2020 11:55 pm

UM or UMBI - uninsured motorist bodily injury -
UIM - underinsured motorist bodily injury
UMPD - uninsured motorist property damages

UM/UMBI is a bodily injury claim against your insurance party where they step in in place of the at fault party who doesn’t have insurance. This is state specific in regards to whether the at fault party must be confirmed and no insurance verified. A common issue is a when a ‘phantom vehicle’ runs someone off the road and isn’t ever identified. There typically needs to be evidence or verification from a neutral party.

UIM is a bodily injury claim against your insurance when the at fault party’s insurance is insufficient to indemnify you. Typically the at fault party’s insurance limits are tendered and its for damages in excess of that. Typically, your UIM limits must match your own liability limits. This is venue dependent but sometimes you may not be able to stack limits and the at fault party’s insurance limit is offset from your own coverage.

UMPD is a a claim against your own policy for property damage resulting from an uninsured party. Like UMBI, there is some requirement for determining the party who caused the damage and whether they were insured. In some states, Ohio for example you can carry collision or UMPD but not both. However, in Texas you can carry collision and UMPD. Usually, UMPD has a lower deductible and may not result in a policy surcharge if used.

From an adjusting standpoint, if you present a claim to your insurance where you only have UMPD but no collision, the first call is to the other company. If they confirm the other party has coverage, claim is closed. They can still deny liability, but UMPD doesn’t provide coverage for a liability denial.

UMPD is pretty limiting. It’s better than no coverage but not as good as collision.

Topic Author
zeugmite
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Re: How much is insurance co. involved in UMPD claim?

Post by zeugmite » Mon Jan 13, 2020 12:46 am

jbmitt wrote:
Sun Jan 12, 2020 11:55 pm
From an adjusting standpoint, if you present a claim to your insurance where you only have UMPD but no collision, the first call is to the other company. If they confirm the other party has coverage, claim is closed. They can still deny liability, but UMPD doesn’t provide coverage for a liability denial.

UMPD is pretty limiting. It’s better than no coverage but not as good as collision.
It sounds like collision still has its place then. Third party claims sound awful when you are one person against a company, trying to negotiate liability.

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