Uninsured Motorist Car Insurance - Is it Worth the Expense??

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mholdi1540
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Uninsured Motorist Car Insurance - Is it Worth the Expense??

Post by mholdi1540 »

HI - thanks for advice in advance. I live in Louisiana, a lawyer's heaven for car accidents. Regardless, the cost of Uninsured Motorist Insurance is 43% of premium every 6 months ($404 of every 6 month $927 premium currently). We have a large Umbrella policy and health insurance. We have been paying this uninsured part of the policy for decades and never had to use and I have friends who never have paid it. My question to you is do you think ii is really necessary if you have the basics already covered such as health, car, umbrella insurance. The Uninsured is listed as Bodily Injury $250,000/$500,000. It is just getting out of hand with policy price going up each year and I know a person who "...sued " their insurance company for such and by the time lawyer fees were subtracted, not to mention headaches, the recovery was significantly reduced. ALL Advice is Appreciated from this forum. Thanks in advance..
oldfort
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Re: Uninsured Motorist Car Insurance - Is it Worth the Expense??

Post by oldfort »

1 in 8 drivers nationwide are uninsured. Then, there's all the drivers with minimum limits. If you suffer bodily injury and want to collect anything in the event another driver is at fault in an accident, UM/UIM is often the only realistic way of receiving compensation.
Big Dog
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Re: Uninsured Motorist Car Insurance - Is it Worth the Expense??

Post by Big Dog »

What is the rate of uninsured in your state? In CA, its an estimated of one-third of drivers (no or underinsured), so the masses are foolish not have UIM. And don't forget, your neighboring states as LA is a tourist haven so folks come from all over.
KESP
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Re: Uninsured Motorist Car Insurance - Is it Worth the Expense??

Post by KESP »

My mother was in an auto accident where the at fault driver had $25,000 limits, the minimum. She suffered serious leg injuries and probably had almost $300,000 in medical bills. Her Medicare did pay the bills, except for a 2 month stay in a nursing home, and she had an under-insured policy with $100,000 coverage. In CT, they reduce the payout from your own insurance from the amount of the at fault party's insurance. So her payout even with Underinsured Motorist protection wa $75,000/ Her remaining days were spent in pain and severely limited as to what she could do. She died of cancer 2 years later. If she was younger, the additional money would have been necessary for ongoing medical treatment and adaptations that were needed to make her house handicap accessible. Another one of those situations where it would be nice to have a crystal ball to see if you will need it.
bob60014
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Re: Uninsured Motorist Car Insurance - Is it Worth the Expense??

Post by bob60014 »

mholdi1540 wrote: Sun May 02, 2021 11:01 am .......Regardless, the cost of Uninsured Motorist Insurance is 43% of premium every 6 months ($404 of every 6 month $927 premium currently). .....
All I can say is, yikes! I had to look at my policy and Im paying $8.50/6mo and I thought that was high.
Shallowpockets
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Re: Uninsured Motorist Car Insurance - Is it Worth the Expense??

Post by Shallowpockets »

One wonders why this problem is not addressed more correctly at the source. Uninsured motorist. If a state has required insurance and people don’t have it, what are the penalties? Most likely, nothing. A law that has no teeth.
As long as we can and do pay uninsured motorist insurance there is no need to address that situation.
Can one say that the insurance companies make more money off this additional premium than paying what it would take to lobby for increased enforcement of existing laws. But since there are no sanctions against motorists with no insurance and no loss to insurance companies if you do not have uninsured motorist insurance, why bother.
Is uninsured motorist insurance worth it?
Do you really have a choice?
shess
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Re: Uninsured Motorist Car Insurance - Is it Worth the Expense??

Post by shess »

bob60014 wrote: Sun May 02, 2021 11:33 am
mholdi1540 wrote: Sun May 02, 2021 11:01 am .......Regardless, the cost of Uninsured Motorist Insurance is 43% of premium every 6 months ($404 of every 6 month $927 premium currently). .....
All I can say is, yikes! I had to look at my policy and Im paying $8.50/6mo and I thought that was high.
Ours it more like $30. I find myself wondering if the OP's high costs for this kind of insurance are somehow related to where the OP lives. Maybe their area has a lot of scofflaws driving around?
Starfox
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Re: Uninsured Motorist Car Insurance - Is it Worth the Expense??

Post by Starfox »

My concern of medical expenses and long-term disability from a car accident is high, so we have $5M "Excess Uninsured/Underinsured Motorist Limit". It's a line-item on our $25M umbrella policy, not sure cost per million, but its about $1200/year for $5M UI/UIM.
Lee_WSP
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Re: Uninsured Motorist Car Insurance - Is it Worth the Expense??

Post by Lee_WSP »

Yes. Period. It's not even a question unless the tiny premiums are somehow killing you. In which case, you've got bigger problems.

It's vastly cheaper than health insurance and I don't think you're foregoing that.
Broken Man 1999
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Re: Uninsured Motorist Car Insurance - Is it Worth the Expense??

Post by Broken Man 1999 »

I wish I had had uninsured/under insured coverage when I had my accident. The young man who hit a DD and I had $20,000 coverage. I received $15,000, a couple of his passengers split the remainder.

I ended up in a better position, as my attorney found deeper pockets.

So I get to pay $48 every day for my health care aides. It is like a small mortgage that will increase periodically and won’t end until my death.

From a financial perspective, I ended up better off, but I wouldn’t recommend my path. :D

Broken Man 1999
uberdoc
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Re: Uninsured Motorist Car Insurance - Is it Worth the Expense??

Post by uberdoc »

Shallowpockets wrote: Sun May 02, 2021 12:01 pm One wonders why this problem is not addressed more correctly at the source. Uninsured motorist. If a state has required insurance and people don’t have it, what are the penalties? Most likely, nothing. A law that has no teeth.
As long as we can and do pay uninsured motorist insurance there is no need to address that situation.
Can one say that the insurance companies make more money off this additional premium than paying what it would take to lobby for increased enforcement of existing laws. But since there are no sanctions against motorists with no insurance and no loss to insurance companies if you do not have uninsured motorist insurance, why bother.
Is uninsured motorist insurance worth it?
Do you really have a choice?

This I never understood. If state has no record of current insurance why not suspend the registration. Not sure how to stop cars with suspended registration plates? One way could be automatic plate readers based enforcement...just wondering.
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TexasPE
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Re: Uninsured Motorist Car Insurance - Is it Worth the Expense??

Post by TexasPE »

Wife-to-be hit by a driver in 1989 (ran a stop sign). Totaled her 3-month old car, put her into a coma for several days. She had partial amnesia for months. The at-fault driver had 'good insurance' (his words) - $10K - the state minimum! His insurance wrote her a check for the $10K - which didn't even cover her car - and washed their hands of the situation.

My wife's uninsured/ underinsured coverage paid her $25K... which paid for the rest of the car, additional medical care, etc.

Also note that many health policies resist covering accidents caused by a third-party.
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LilyFleur
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Re: Uninsured Motorist Car Insurance - Is it Worth the Expense??

Post by LilyFleur »

I was rear-ended by a driver without a license. My car was totaled. I had to have weeks of physical therapy and was so dizzy from the concussion that I could barely walk safely. Some guardian angels in a truck took photos and they followed me off the road and talked to the police. She was charged and convicted for a hit and run. Fortunately the car was insured by her husband, but the maximum payout was $20,000.

Underinsured is just as much of a problem as uninsured.

It happens.
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gwe67
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Re: Uninsured Motorist Car Insurance - Is it Worth the Expense??

Post by gwe67 »

Florida has the highest rate of uninsured motorists:

"Your license, plates, and registration will be suspended for up to three years. Once this suspension is in place, you will have to provide the state with proof of a new policy and pay a fee of $150 to have your license, plates, and registration reinstated."

New York has the lowest rate of uninsured motorists:

"The penalties for driving without auto insurance in New York are steep. The state may fine you up to $1,500, charge an additional fee of $750 to restore a revoked license, impound your vehicle, suspend your driving privileges or even require you to serve jail time."
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dknightd
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Re: Uninsured Motorist Car Insurance - Is it Worth the Expense??

Post by dknightd »

mholdi1540 wrote: Sun May 02, 2021 11:01 am HI - thanks for advice in advance. I live in Louisiana, a lawyer's heaven for car accidents. Regardless, the cost of Uninsured Motorist Insurance is 43% of premium every 6 months ($404 of every 6 month $927 premium currently). We have a large Umbrella policy and health insurance. We have been paying this uninsured part of the policy for decades and never had to use and I have friends who never have paid it. My question to you is do you think ii is really necessary if you have the basics already covered such as health, car, umbrella insurance. The Uninsured is listed as Bodily Injury $250,000/$500,000. It is just getting out of hand with policy price going up each year and I know a person who "...sued " their insurance company for such and by the time lawyer fees were subtracted, not to mention headaches, the recovery was significantly reduced. ALL Advice is Appreciated from this forum. Thanks in advance..
43% seems way high. Talk to your insurance agent.
edit: it seems strange we have to buy insurance to protect against people who do not buy insurance. But that seems to be the way it works . . .
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brokendirtdart
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Re: Uninsured Motorist Car Insurance - Is it Worth the Expense??

Post by brokendirtdart »

shess wrote: Sun May 02, 2021 12:10 pm
bob60014 wrote: Sun May 02, 2021 11:33 am
mholdi1540 wrote: Sun May 02, 2021 11:01 am .......Regardless, the cost of Uninsured Motorist Insurance is 43% of premium every 6 months ($404 of every 6 month $927 premium currently). .....
All I can say is, yikes! I had to look at my policy and Im paying $8.50/6mo and I thought that was high.
Ours it more like $30. I find myself wondering if the OP's high costs for this kind of insurance are somehow related to where the OP lives. Maybe their area has a lot of scofflaws driving around?
Louisiana in general has some of the highest in the nation auto insurance rates.

As far as scofflaws. Yeah, it's Louisiana-you kind of have to live there to understand it. :happy
shess
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Re: Uninsured Motorist Car Insurance - Is it Worth the Expense??

Post by shess »

gwe67 wrote: Sun May 02, 2021 1:42 pm Florida has the highest rate of uninsured motorists:

"Your license, plates, and registration will be suspended for up to three years. Once this suspension is in place, you will have to provide the state with proof of a new policy and pay a fee of $150 to have your license, plates, and registration reinstated."

New York has the lowest rate of uninsured motorists:

"The penalties for driving without auto insurance in New York are steep. The state may fine you up to $1,500, charge an additional fee of $750 to restore a revoked license, impound your vehicle, suspend your driving privileges or even require you to serve jail time."
Maybe they could add a provision that your own payout when someone else is at fault is limited to no more than your own coverage levels?
MikeG62
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Re: Uninsured Motorist Car Insurance - Is it Worth the Expense??

Post by MikeG62 »

I pay ~$400 per year for $500,000 of uninsured/under-insured coverage on a total premium of ~$2,200 for two vehicles.

I also have $1.0 million additional uninsured/under-insured coverage added to my $5.0 million umbrella at a cost of ~$200 annually (for the uninsured/under-insured add-on).

Given the eye watering cost of medical care, it’s not hard to imagine costs well into the six figures (or more) if someone were severely injured in an auto accident. I want the coverage not just for me but for any passengers in my car should I be involved in a collision with someone who is uninsured or under-insured and they are at fault.
Last edited by MikeG62 on Mon May 03, 2021 6:37 am, edited 1 time in total.
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MikeG62
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Re: Uninsured Motorist Car Insurance - Is it Worth the Expense??

Post by MikeG62 »

Starfox wrote: Sun May 02, 2021 12:41 pm My concern of medical expenses and long-term disability from a car accident is high, so we have $5M "Excess Uninsured/Underinsured Motorist Limit". It's a line-item on our $25M umbrella policy, not sure cost per million, but its about $1200/year for $5M UI/UIM.
That’s as big an umbrella as I’ve seen anyone mention they had in all the umbrella threads on this forum. I have $5 million and I am usually on the very high end of what people disclose.

Curious what you pay for $25 million (and who the insurer is) - if you are willing to say? I looked into upping mine to $10 million some half dozen years ago and the cost of the additional $5 million was 2X the cost of the first $5 million. I passed.
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Starfox
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Re: Uninsured Motorist Car Insurance - Is it Worth the Expense??

Post by Starfox »

MikeG62 wrote: Sun May 02, 2021 2:26 pm
Starfox wrote: Sun May 02, 2021 12:41 pm My concern of medical expenses and long-term disability from a car accident is high, so we have $5M "Excess Uninsured/Underinsured Motorist Limit". It's a line-item on our $25M umbrella policy, not sure cost per million, but its about $1200/year for $5M UI/UIM.
That’s as big an umbrella as I’ve seen anyone mention they had in all the umbrella threads on this forum. I have $5 million and I am usually on the very high end of what people disclose.

Curious what you pay for $25 million (and who the insurer is) - if you are willing to say? I looked into upping mine to $10 million some half dozen years ago and the cost of the additional $5 million was 2X the cost of the first $5 million. I passed.
$9273/year with AIG PCG for one house, three cars, and three drivers. It covers the $25m umbrella and $5m excess um/uim.

Our total insurance premium each year is $26k for our combined home/auto/jewelry/umbrella. We don’t have life/disability policies.
It’s a lot of money but necessary and acceptable when compared to our net worth / annual budget.
Last edited by Starfox on Sun May 02, 2021 3:05 pm, edited 1 time in total.
Broken Man 1999
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Re: Uninsured Motorist Car Insurance - Is it Worth the Expense??

Post by Broken Man 1999 »

TexasPE wrote: Sun May 02, 2021 1:35 pm Wife-to-be hit by a driver in 1989 (ran a stop sign). Totaled her 3-month old car, put her into a coma for several days. She had partial amnesia for months. The at-fault driver had 'good insurance' (his words) - $10K - the state minimum! His insurance wrote her a check for the $10K - which didn't even cover her car - and washed their hands of the situation.

My wife's uninsured/ underinsured coverage paid her $25K... which paid for the rest of the car, additional medical care, etc.

Also note that many health policies resist covering accidents caused by a third-party.
Yep. My auto insurance paid the first $250,000 of my medical bills before the health insurance started paying. The regional trauma center put a lien on our house, removed it later when my health insurance picked up the other charges. I was billed over a million, but that was reduced quite a bit, I would guess. Thankfully I had gold-plated insurance from MegaCorp.

Broken Man 1999
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SlowMovingInvestor
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Re: Uninsured Motorist Car Insurance - Is it Worth the Expense??

Post by SlowMovingInvestor »

TexasPE wrote: Sun May 02, 2021 1:35 pm Also note that many health policies resist covering accidents caused by a third-party.
Really ? I thought they would cover any health care beyond the coverage of the other party's coverage + your own UI/under insured coverage.
What don't they cover ? Long Term rehab ?

[I almost never have any passengers in my car not covered by my/spouse health insurance, FWIW]
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oldfort
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Re: Uninsured Motorist Car Insurance - Is it Worth the Expense??

Post by oldfort »

SlowMovingInvestor wrote: Sun May 02, 2021 3:07 pm
TexasPE wrote: Sun May 02, 2021 1:35 pm Also note that many health policies resist covering accidents caused by a third-party.
Really ? I thought they would cover any health care beyond the coverage of the other party's coverage + your own UI/under insured coverage.
What don't they cover ? Long Term rehab ?

[I almost never have any passengers in my car not covered by my/spouse health insurance, FWIW]
Health insurance should pay all your medical bills within the normal scope of your policy once the greater of your UM/UIM, if applicable, or the other party's coverage is exhausted. Your health insurance company may have subrogation rights to receive part of the settlement from the auto insurance companies.
ballons
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Re: Uninsured Motorist Car Insurance - Is it Worth the Expense??

Post by ballons »

uberdoc wrote: Sun May 02, 2021 1:31 pm
Shallowpockets wrote: Sun May 02, 2021 12:01 pm One wonders why this problem is not addressed more correctly at the source. Uninsured motorist. If a state has required insurance and people don’t have it, what are the penalties? Most likely, nothing. A law that has no teeth.
As long as we can and do pay uninsured motorist insurance there is no need to address that situation.
Can one say that the insurance companies make more money off this additional premium than paying what it would take to lobby for increased enforcement of existing laws. But since there are no sanctions against motorists with no insurance and no loss to insurance companies if you do not have uninsured motorist insurance, why bother.
Is uninsured motorist insurance worth it?
Do you really have a choice?

This I never understood. If state has no record of current insurance why not suspend the registration. Not sure how to stop cars with suspended registration plates? One way could be automatic plate readers based enforcement...just wondering.
They do. The problem is that most states only check the database when you register/renew. Registration with no insurance = suspended license. Most people get insurance for one month, then cancel.

Could the state check the database every single month? Sure, but that will sweep up tons of innocent people. Some states do check quarterly for active registration with no insurance.
SlowMovingInvestor
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Re: Uninsured Motorist Car Insurance - Is it Worth the Expense??

Post by SlowMovingInvestor »

oldfort wrote: Sun May 02, 2021 3:14 pm
SlowMovingInvestor wrote: Sun May 02, 2021 3:07 pm
TexasPE wrote: Sun May 02, 2021 1:35 pm Also note that many health policies resist covering accidents caused by a third-party.
Really ? I thought they would cover any health care beyond the coverage of the other party's coverage + your own UI/under insured coverage.
What don't they cover ? Long Term rehab ?

[I almost never have any passengers in my car not covered by my/spouse health insurance, FWIW]
Health insurance should pay all your medical bills within the normal scope of your policy once the greater of your UM/UIM, if applicable, or the other party's coverage is exhausted. Your health insurance company may have subrogation rights to receive part of the settlement from the auto insurance companies.
Thanks, that's what I figured. What exactly would be covered under UI/UIM that Health Insurance or workplace LTD would not cover ? Pain and suffering, long term rehab, lost wages (the part that LTD does not cover) ? I'm trying to figure out what level is appropriate to cover those risks.
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oldfort
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Re: Uninsured Motorist Car Insurance - Is it Worth the Expense??

Post by oldfort »

SlowMovingInvestor wrote: Sun May 02, 2021 3:25 pm
oldfort wrote: Sun May 02, 2021 3:14 pm
SlowMovingInvestor wrote: Sun May 02, 2021 3:07 pm
TexasPE wrote: Sun May 02, 2021 1:35 pm Also note that many health policies resist covering accidents caused by a third-party.
Really ? I thought they would cover any health care beyond the coverage of the other party's coverage + your own UI/under insured coverage.
What don't they cover ? Long Term rehab ?

[I almost never have any passengers in my car not covered by my/spouse health insurance, FWIW]
Health insurance should pay all your medical bills within the normal scope of your policy once the greater of your UM/UIM, if applicable, or the other party's coverage is exhausted. Your health insurance company may have subrogation rights to receive part of the settlement from the auto insurance companies.
Thanks, that's what I figured. What exactly would be covered under UI/UIM that Health Insurance or workplace LTD would not cover ? Pain and suffering, long term rehab, lost wages (the part that LTD does not cover) ? I'm trying to figure out what level is appropriate to cover those risks.
Here's a good example of where I thought UI/UIM would have been really useful. I can't remember the source but believe it came from Forbes. Somebody's college age son got hit skateboarding and suffered significant neurological damage. He might never be able to hold a normal job. College students don't carry disability. The other driver had low limits on the insurance, so the UM/UIM money which went into a trust is what's available to support him for the rest of his life. So if you have kids or a stay-at-home spouse, I would recommend UM/UIM.

Most LTD policies won't replace 100% of your income.
Last edited by oldfort on Sun May 02, 2021 4:04 pm, edited 1 time in total.
Broken Man 1999
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Re: Uninsured Motorist Car Insurance - Is it Worth the Expense??

Post by Broken Man 1999 »

SlowMovingInvestor wrote: Sun May 02, 2021 3:25 pm
oldfort wrote: Sun May 02, 2021 3:14 pm
SlowMovingInvestor wrote: Sun May 02, 2021 3:07 pm
TexasPE wrote: Sun May 02, 2021 1:35 pm Also note that many health policies resist covering accidents caused by a third-party.
Really ? I thought they would cover any health care beyond the coverage of the other party's coverage + your own UI/under insured coverage.
What don't they cover ? Long Term rehab ?

[I almost never have any passengers in my car not covered by my/spouse health insurance, FWIW]
Health insurance should pay all your medical bills within the normal scope of your policy once the greater of your UM/UIM, if applicable, or the other party's coverage is exhausted. Your health insurance company may have subrogation rights to receive part of the settlement from the auto insurance companies.
Thanks, that's what I figured. What exactly would be covered under UI/UIM that Health Insurance or workplace LTD would not cover ? Pain and suffering, long term rehab, lost wages (the part that LTD does not cover) ? I'm trying to figure out what level is appropriate to cover those risks.
LTD benefits cover loss of income. Between my LTD and SSDI I received about 67% of my salary, tax free. However, the expenses we previously spent to live didn't include my health care aides. Fortunately I had a LTC policy that paid $275,000. That amount lasted for around 10-12 years. Because I used LTC benefits my wife was able to continue working for another decade or so. When she retired I was able to cut the daily hours down some to stretch the LTC money, but once the $275,000 dollars were exhausted, I had pay OOP for my aides. Last year I spent right at $17,000. About half of last year was at the old hourly rate, all of this year will be at the new rate of $24/hr, minimum of 2 hours, plus a handful of days at holiday pay.

My aides aren't inexpensive, but I wouldn't trade them for anything.

Broken Man 1999
“If I cannot drink Bourbon and smoke cigars in Heaven then I shall not go." - Mark Twain
Big Dog
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Re: Uninsured Motorist Car Insurance - Is it Worth the Expense??

Post by Big Dog »

uberdoc wrote: Sun May 02, 2021 1:31 pm
Shallowpockets wrote: Sun May 02, 2021 12:01 pm One wonders why this problem is not addressed more correctly at the source. Uninsured motorist. If a state has required insurance and people don’t have it, what are the penalties? Most likely, nothing. A law that has no teeth.
As long as we can and do pay uninsured motorist insurance there is no need to address that situation.
Can one say that the insurance companies make more money off this additional premium than paying what it would take to lobby for increased enforcement of existing laws. But since there are no sanctions against motorists with no insurance and no loss to insurance companies if you do not have uninsured motorist insurance, why bother.
Is uninsured motorist insurance worth it?
Do you really have a choice?

This I never understood. If state has no record of current insurance why not suspend the registration. Not sure how to stop cars with suspended registration plates? One way could be automatic plate readers based enforcement...just wondering.
It's by design. I remember the discussion when CA adopted mandatory insurance. The first objection was that the poor could not afford it, so to keep premiums low only a minimum policy was required; its up to $35k now. (Given the complexity and costs of autos and health care, that minimal amount covers almost nothing.) But the thinking was that some required insurance is better than nothing as most accidents are fender-benders.

Second, CA only requires insurance when the car is being registered. So many will purchase a policy and register their car, and then cancel the policy (and obtain a prorated refund). When the registration is due 12 months hence, buy new policy, register car, cancel policy, obtain refund. Rinse and repeat. That loophole was known when the law was passed. Again, by design.

Needless to say, folks in CA are foolish to go without UIM.
calwatch
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Re: Uninsured Motorist Car Insurance - Is it Worth the Expense??

Post by calwatch »

The underinsured component is more important IMHO due to the extremely low minimum requirements, most of which have never been increased when put into place, and virtually none which rise with inflation. California's 15/30/5 is basically useless beyond a fender bender. Certainly having something is better than nothing and you're not going to get blood out of a turnip, or a minimum wage worker with little savings who can file bankruptcy immediately.
carne_asada
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Re: Uninsured Motorist Car Insurance - Is it Worth the Expense??

Post by carne_asada »

If you have good health insurance that will cover you in an auto accident (regardless of fault) then you typically only need sufficient uninsured motorist insurance to cover whatever the total loss payout would be on your car. Your health insurance company may send you letters every month asking if your injury claim was caused by an accident but you can just ignore them.
Broken Man 1999
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Re: Uninsured Motorist Car Insurance - Is it Worth the Expense??

Post by Broken Man 1999 »

carne_asada wrote: Sun May 02, 2021 5:15 pm If you have good health insurance that will cover you in an auto accident (regardless of fault) then you typically only need sufficient uninsured motorist insurance to cover whatever the total loss payout would be on your car. Your health insurance company may send you letters every month asking if your injury claim was caused by an accident but you can just ignore them.
I take it you have the ability to possibly pay out tens of thousands of dollars each year if you cannot take care of yourself due to disabilities and require hired help?

And, perhaps you have another $40,000-$50,000 dollars available for home modifications, and perhaps a van equipped with a wheelchair lift.

I have that ability, fortunately, but I'd much rather someone else had paid the initial and also ongoing costs.

BTW, it is never a good idea to ignore letters from the insurance company that is paying your claims.

Broken Man 1999
“If I cannot drink Bourbon and smoke cigars in Heaven then I shall not go." - Mark Twain
PowderDay9
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Re: Uninsured Motorist Car Insurance - Is it Worth the Expense??

Post by PowderDay9 »

SlowMovingInvestor wrote: Sun May 02, 2021 3:25 pm Thanks, that's what I figured. What exactly would be covered under UI/UIM that Health Insurance or workplace LTD would not cover ? Pain and suffering, long term rehab, lost wages (the part that LTD does not cover) ? I'm trying to figure out what level is appropriate to cover those risks.
I'm trying to understand what UI/UIM covers as well. I'm in FL and this costs $650 a year to add. If one has comprehensive health insurance, STD/LTD, SSDI, life insurance and a substantial emergency fund, then what would it cover that isn't already covered?

I'd be curious to know why the price is so high. I realize there's a lot of uninsured motorists but there's also a lot of personal injury attorneys trying to maximum pay outs. Although at this price I can't imagine a lot of people buying this considering how many buy only the minimum liability (or nothing).
SlowMovingInvestor
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Re: Uninsured Motorist Car Insurance - Is it Worth the Expense??

Post by SlowMovingInvestor »

Another question -- UI/UIM also covers you only if you're driving cars in the policy ?

Does it cover you if you're driving a rental car or even get hit by a car crossing the street ?
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Northern Flicker
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Re: Uninsured Motorist Car Insurance - Is it Worth the Expense??

Post by Northern Flicker »

UIM insurance also covers your passengers, who may not have STD/LTD insurance or even health insurance. Your passengers also can sue you by claiming that you could have prevented the accident even if you were not at fault.

At some point, insurance companies stopped having new unbrella policies wrap UIM liability, so being sued by your passenger if you are hit by an uninsured motorist was something insurance companies cared about enough to drop that coverage from umbrella policies, which are liability policies, not medical reimbursement.
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oldfort
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Re: Uninsured Motorist Car Insurance - Is it Worth the Expense??

Post by oldfort »

Northern Flicker wrote: Sun May 02, 2021 7:56 pm Your passengers also can sue you by claiming that you could have prevented the accident even if you were not at fault.
If your passengers sue you, it would be covered by liability not UM/UIM.
Jeepergeo
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Re: Uninsured Motorist Car Insurance - Is it Worth the Expense??

Post by Jeepergeo »

Big Dog wrote: Sun May 02, 2021 4:16 pm
uberdoc wrote: Sun May 02, 2021 1:31 pm
Shallowpockets wrote: Sun May 02, 2021 12:01 pm One wonders why this problem is not addressed more correctly at the source. Uninsured motorist. If a state has required insurance and people don’t have it, what are the penalties? Most likely, nothing. A law that has no teeth.
As long as we can and do pay uninsured motorist insurance there is no need to address that situation.
Can one say that the insurance companies make more money off this additional premium than paying what it would take to lobby for increased enforcement of existing laws. But since there are no sanctions against motorists with no insurance and no loss to insurance companies if you do not have uninsured motorist insurance, why bother.
Is uninsured motorist insurance worth it?
Do you really have a choice?

This I never understood. If state has no record of current insurance why not suspend the registration. Not sure how to stop cars with suspended registration plates? One way could be automatic plate readers based enforcement...just wondering.
It's by design. I remember the discussion when CA adopted mandatory insurance. The first objection was that the poor could not afford it, so to keep premiums low only a minimum policy was required; its up to $35k now. (Given the complexity and costs of autos and health care, that minimal amount covers almost nothing.) But the thinking was that some required insurance is better than nothing as most accidents are fender-benders.

Second, CA only requires insurance when the car is being registered. So many will purchase a policy and register their car, and then cancel the policy (and obtain a prorated refund). When the registration is due 12 months hence, buy new policy, register car, cancel policy, obtain refund. Rinse and repeat. That loophole was known when the law was passed. Again, by design.

Needless to say, folks in CA are foolish to go without UIM.
^^^^Good summary for the once great state of California.

The OP's rate seems really high. Mine with State Farm runs about 2% of the total based on a policy that meets the minimums for the associated Umbrella Policy, which means underlying coverages just under 10X the minimum coverage limits in the state.

The cancel scam could be easily fixed (minor technical and administrative details) but the politicians in Sacramento don't have the spine for making the change.

Sure, buying UI insurance perpetuates the problem, but it is basically the cost of protecting oneself in California.
BedHead2020
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Re: Uninsured Motorist Car Insurance - Is it Worth the Expense??

Post by BedHead2020 »

When I lived in Maryland, the insurance companies were required to notify the DMV when a policy lapsed or was initiated on a vehicle. If a certain period of time elapsed (a week or so) and an expired policy wasn’t replaced with a new policy, the DMV notified the local police. The police then came to the home and seized the license plates from the car.

This happened to us when I was a child and due to a miscommunication between my parents, each thought the other had renewed the car insurance and it briefly lapsed. Boy were my parents surprised when the police knocked on the door to inform them that they were taking the tags.

This is not a perfect solution, but it’s got more teeth than here in Texas, where proof of insurance is required once per year at inspection time and, as others have observed, is easy to game by only getting one month of insurance.
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Re: Uninsured Motorist Car Insurance - Is it Worth the Expense??

Post by Cycle »

I was hit by an uninsured / unlicensed driver on the freeway who was speeding and lost control of their vehicle. The state trooper said it happens all the time, where people buy a cheap car with new tags and never register it. A shockingly high number of people are driving around hammered and with no license or insurance. Americar, land of the free to get killed in public.
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Re: Uninsured Motorist Car Insurance - Is it Worth the Expense??

Post by IMO »

Big Dog wrote: Sun May 02, 2021 4:16 pm
uberdoc wrote: Sun May 02, 2021 1:31 pm
Shallowpockets wrote: Sun May 02, 2021 12:01 pm One wonders why this problem is not addressed more correctly at the source. Uninsured motorist. If a state has required insurance and people don’t have it, what are the penalties? Most likely, nothing. A law that has no teeth.
As long as we can and do pay uninsured motorist insurance there is no need to address that situation.
Can one say that the insurance companies make more money off this additional premium than paying what it would take to lobby for increased enforcement of existing laws. But since there are no sanctions against motorists with no insurance and no loss to insurance companies if you do not have uninsured motorist insurance, why bother.
Is uninsured motorist insurance worth it?
Do you really have a choice?

This I never understood. If state has no record of current insurance why not suspend the registration. Not sure how to stop cars with suspended registration plates? One way could be automatic plate readers based enforcement...just wondering.
It's by design. I remember the discussion when CA adopted mandatory insurance. The first objection was that the poor could not afford it, so to keep premiums low only a minimum policy was required; its up to $35k now. (Given the complexity and costs of autos and health care, that minimal amount covers almost nothing.) But the thinking was that some required insurance is better than nothing as most accidents are fender-benders.

Second, CA only requires insurance when the car is being registered. So many will purchase a policy and register their car, and then cancel the policy (and obtain a prorated refund). When the registration is due 12 months hence, buy new policy, register car, cancel policy, obtain refund. Rinse and repeat. That loophole was known when the law was passed. Again, by design.

Needless to say, folks in CA are foolish to go without UIM.
This all really circles back to the OP concern. Yes, Uninsured Motorist Car Insurance, it IS worth the expense.

A significant amount of the insurance I have/pay for is to insure me against what other people can do to me potentially, not what I can do to other people.

These problems are like identity theft. Sure they are technically illegal, but as a law abiding citizen, they are your problems to deal with.
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Re: Uninsured Motorist Car Insurance - Is it Worth the Expense??

Post by Moneybags1 »

I live in Florida. I was driving my elderly neighbor in her car when another driver ran a red light and slammed into us broadside. I insisted my neighbor who was hurt and I unknowingly at the time had very temporary issues and figured joining her in the ambulance to the ER would be cost efficient. To my surprise an ambulance ride 13 miles come out to nearly $900 each! I had a couple X Rays for a total bill of $7500. Fla has no-fault $10k with a 20% deductible. I had an extra $5k of medical which covered the 20%. My neighbor quickly ran out of her no-fault $$$$. State Farm told me they pay 100% over Medicare rates. Seems Medicare patients are billed $250 for an ambulance ride. I asked my agent if No Fault insurance is a welfare program for the hospitals to cover all the uninsured patients, he laughed and said it is ridiculous. After reading all these threads, I wondered how many got bilked because auto insurance and not health insurance was paying the bill? I know this is why Florida at the last minute decided not to go Tort a few years ago at the last minute as the hospitals started crying to the governor about revenue losses. What a joke! Great Thread.
MadDwag
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Re: Uninsured Motorist Car Insurance - Is it Worth the Expense??

Post by MadDwag »

Unfortunately in most cases insurance is one of those things where if it is more expensive, it means you’re more likely to need it/use it.
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Re: Uninsured Motorist Car Insurance - Is it Worth the Expense??

Post by trevorshhh »

Big Dog wrote: Sun May 02, 2021 11:19 am What is the rate of uninsured in your state? In CA, its an estimated of one-third of drivers (no or underinsured), so the masses are foolish not have UIM. And don't forget, your neighboring states as LA is a tourist haven so folks come from all over.
Surprisingly, Louisiana isn't too bad, with 11.7% uninsured. Lower than my state and my uninsured motor insurance is very cheap. But LA does border the state with the highest percentage uninsured -- Mississippi at 29.4%.
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Re: Uninsured Motorist Car Insurance - Is it Worth the Expense??

Post by gwe67 »

SlowMovingInvestor wrote: Sun May 02, 2021 7:45 pm Another question -- UI/UIM also covers you only if you're driving cars in the policy ?

Does it cover you if you're driving a rental car or even get hit by a car crossing the street ?
Sweet portfolio, but where is the GME?
VTI 48%, VXUS 12%, BND 40%
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Re: Uninsured Motorist Car Insurance - Is it Worth the Expense??

Post by jpelder »

Wow, your insurance is expensive. I only pay ~$500 per 6 months, and only $95 of that is uninsured motorist coverage. This is for two cars, one 10 years old, the other 8, so the collision and comprehensive coverages aren't very expensive anymore. The liability lines are by far the largest share (almost half of the premium).
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cookymonster
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Re: Uninsured Motorist Car Insurance - Is it Worth the Expense??

Post by cookymonster »

How much coverage for UIM is your insurance offering? Mine is only offering $300k/$300k. If I require skilled nursing care for the rest of my life, that won’t make a meaningful difference anyway, and my umbrella insurance doesn’t cover it.
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Re: Uninsured Motorist Car Insurance - Is it Worth the Expense??

Post by arf1410 »

UIM, at least in my state, has 2 parts, bodily injury, and property damage. The property damage part is dirt cheap, the bodily injury is very expensive. I suspect the folks above who quote really cheap rates, are just quoted property damage. I would like to buy just the property damage, but cant without bodily injury, so I simply decline it all. We've got high end medical insurance, and can't ever think of a time that someone without insurance has been a passenger in our car, so don't see how that bodily injury coverage helps ME, though might help my medical insurance company if they try to subrogate. As far as property damage, the UIM has a deductible of $100, and my collision we have $500... so I guess that would be a slight advantage. I had a lengthy tele call with my insurance GEICO a few years ago, and they could not provide any strong reason to carry that coverage a few years ago, so we dropped it.
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Re: Uninsured Motorist Car Insurance - Is it Worth the Expense??

Post by willthrill81 »

It's a good idea to have at least enough uninsured/underinsured motorist coverage to cover the market value of your vehicle(s). If your vehicle is destroyed due to the fault of such a driver, your vehicle will be covered.

I would hesitate to get much more coverage than the value of your vehicle. If you are hurt, your medical insurance should cover it. The only other thing you might get from such coverage would be reimbursement for pain and suffering, but your insurance company isn't going to be inclined to give you huge amounts of money for that, and the odds are far against you ever being able to collect much.
Shallowpockets wrote: Sun May 02, 2021 12:01 pmIf a state has required insurance and people don’t have it, what are the penalties? Most likely, nothing. A law that has no teeth.
That's not true in WA state. Several years ago, we were involved in an accident with an uninsured driver, and the fact that he was uninsured automatically meant that he was at fault for the accident. Our uninsured motorist coverage paid for the repairs to our vehicle, and the uninsured motorist had to reimburse our insurance company for all of the damages to our vehicle, pay a fine of at least $450, and had his license automatically suspended for up to three years.
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Re: Uninsured Motorist Car Insurance - Is it Worth the Expense??

Post by Abe »

I don't know anything about it, but I read this here:
https://www.google.com/search?client=fi ... 80&bih=550
If you have collision insurance, you do not need uninsured motorist property damage. This is because they cover the same thing. If you are hit by an uninsured motorist and you already have collision insurance, that would cover you.May 8, 2018
ETA You can click on the article for more detail
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willthrill81
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Re: Uninsured Motorist Car Insurance - Is it Worth the Expense??

Post by willthrill81 »

Abe wrote: Mon May 03, 2021 2:33 pm I don't know anything about it, but I read this here:
https://www.google.com/search?client=fi ... 80&bih=550
If you have collision insurance, you do not need uninsured motorist property damage. This is because they cover the same thing. If you are hit by an uninsured motorist and you already have collision insurance, that would cover you.May 8, 2018
ETA You can click on the article for more detail
Correct. But if you file a claim with your collision policy, you have to pay your deductible and your premiums are very susceptible to increasing.
“Good and ill have not changed since yesteryear; nor are they one thing among Elves and Dwarves and another among Men.” J.R.R. Tolkien, The Lord of the Rings
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