Uninsured/underinsured insurance?

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m@ver1ck
Posts: 55
Joined: Fri Sep 14, 2018 2:18 pm

Uninsured/underinsured insurance?

Post by m@ver1ck » Wed Oct 10, 2018 7:59 am

I don't quite understand what uninsured/underinsured auto insurance is for. You need to have comprehensive and collision in order to get it

If I get into an accident,
Liability will pay the other guy (if I'm at fault)
Collision will pay me (regardless of fault).

In that case, what does having underinsured get me?
If I don't have it, collision insurance still pays me, no?

goldensam
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Joined: Thu Dec 11, 2014 8:45 pm

Re: Uninsured/underinsured insurance?

Post by goldensam » Wed Oct 10, 2018 8:39 am

I was hit by an uninsured driver about two weeks ago. Filing under my UI policy made my deductible $250 instead of $1000 and it does not count against my policy.

jbmitt
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Re: Uninsured/underinsured insurance?

Post by jbmitt » Wed Oct 10, 2018 8:48 am

Underinsured is usually bodily injury (UIM). So if someone else is at fault, injures you, and has insufficient limits to make you whole, your insurance will step in. Determine whether this coverage is from dollar 1 or is offset by whatever coverage the at fault person has.

Uninsured can be property damage or bodily injury. If it’s property damage, (UMPD) it works very similar to collision coverage except it may have a lower deductible and may be more favorable on your CLUE report than a collision claim. Some states like Ohio will only allow you to have Collision or UMPD, but not both. Texas will allow both, and what most people do is have UMPD with a low deductible like $250 and collision with a higher deductible like $1000.

Uninsured Bodily Injury (UMBI) is very similar to my first example of UIM. There may be certain triggers/requirements about identifying the at fault party. So a hit skip or a phantom driver could be problematic for coverage to apply. This again is for injury coverage from your own insurance in the absence of the at fault party having coverage.

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dm200
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Location: Washington DC area

Re: Uninsured/underinsured insurance?

Post by dm200 » Wed Oct 10, 2018 9:05 am

m@ver1ck wrote:
Wed Oct 10, 2018 7:59 am
I don't quite understand what uninsured/underinsured auto insurance is for. You need to have comprehensive and collision in order to get it

If I get into an accident,
Liability will pay the other guy (if I'm at fault)
Collision will pay me (regardless of fault).

In that case, what does having underinsured get me?
If I don't have it, collision insurance still pays me, no?
1. No, you do not need comprehensive and collision to get it.
2. The property damage is the least important - but it would pay if an uninsured driver were at fault.
3. Collision and comprehensive do not cover injury. If an uninsured driver causes serious injury to you and/or passengers - that could be in the many hundreds of thousands of dollars - and your/their health insurance might not cover it. This is the very vital part of why you need it. In some states, it is required.

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FelixTheCat
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Re: Uninsured/underinsured insurance?

Post by FelixTheCat » Wed Oct 10, 2018 1:08 pm

m@ver1ck wrote:
Wed Oct 10, 2018 7:59 am
In that case, what does having underinsured get me?
Your under insured / not insured coverage makes up the difference when the at-fault person has exceeded their policy limits.
Felix is a wonderful, wonderful cat.

Momus
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Re: Uninsured/underinsured insurance?

Post by Momus » Wed Oct 10, 2018 1:09 pm

I don't use it. I'll take my chances :twisted:

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dm200
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Location: Washington DC area

Re: Uninsured/underinsured insurance?

Post by dm200 » Wed Oct 10, 2018 1:16 pm

Momus wrote:
Wed Oct 10, 2018 1:09 pm
I don't use it. I'll take my chances :twisted:
Good Luck. Hope you are not severely injured (maybe become a quadriplegic) by an uninsured driver.

Too big a risk for me or my family or any passengers. Hope I never ride in a car with you.

smackboy1
Posts: 999
Joined: Wed Mar 14, 2007 9:41 pm

Re: Uninsured/underinsured insurance?

Post by smackboy1 » Wed Oct 10, 2018 1:30 pm

m@ver1ck wrote:
Wed Oct 10, 2018 7:59 am
I don't quite understand what uninsured/underinsured auto insurance is for. You need to have comprehensive and collision in order to get it

If I get into an accident,
Liability will pay the other guy (if I'm at fault)
Collision will pay me (regardless of fault).

In that case, what does having underinsured get me?
If I don't have it, collision insurance still pays me, no?
UM/UIM insurance is designed to protect you and your family/passengers from the risk of suffering loss that is the fault of an uninsured/underinsured driver. It literally replaces the missing insurance of the at fault party.

Scenario: You have 0% fault. The other driver is 100% at fault but has no insurance and no assets. You have losses that are not covered by your other insurance, losses that can only be recovered against an at fault party. Things that might include pain and suffering, lost wages, long term medical care etc..
Last edited by smackboy1 on Wed Oct 10, 2018 2:55 pm, edited 1 time in total.
Disclaimer: nothing written here should be taken as legal advice, but I did stay at a Holiday Inn Express last night.

Momus
Posts: 444
Joined: Tue Feb 21, 2012 9:23 pm

Re: Uninsured/underinsured insurance?

Post by Momus » Wed Oct 10, 2018 1:37 pm

dm200 wrote:
Wed Oct 10, 2018 1:16 pm
Momus wrote:
Wed Oct 10, 2018 1:09 pm
I don't use it. I'll take my chances :twisted:
Good Luck. Hope you are not severely injured (maybe become a quadriplegic) by an uninsured driver.

Too big a risk for me or my family or any passengers. Hope I never ride in a car with you.
No one rides a car with me coz I got no SO, or kids. My car is junk with paint peeling off everywhere so I hop on friend's ride ("your car is nicer").

deltaneutral83
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Re: Uninsured/underinsured insurance?

Post by deltaneutral83 » Wed Oct 10, 2018 2:39 pm

dm200 wrote:
Wed Oct 10, 2018 9:05 am
1. No, you do not need comprehensive and collision to get it.
2. The property damage is the least important - but it would pay if an uninsured driver were at fault.
3. Collision and comprehensive do not cover injury. If an uninsured driver causes serious injury to you and/or passengers - that could be in the many hundreds of thousands of dollars - and your/their health insurance might not cover it. This is the very vital part of why you need it. In some states, it is required.
I'm curious, why would your health insurance not cover you if you are not at fault and hit by an uninsured driver? This would essentially put everyone at risk as perpetual health care (well into the millions) is often times needed for accidents and sometimes those accidents aren't even that bad, they just require a few months of expensive health care. This doesn't even address the serious stuff that requires a lifetime of care exceeding 8 figures when it's all said and done.

jbmitt
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Re: Uninsured/underinsured insurance?

Post by jbmitt » Wed Oct 10, 2018 2:43 pm

deltaneutral83 wrote:
Wed Oct 10, 2018 2:39 pm
dm200 wrote:
Wed Oct 10, 2018 9:05 am
1. No, you do not need comprehensive and collision to get it.
2. The property damage is the least important - but it would pay if an uninsured driver were at fault.
3. Collision and comprehensive do not cover injury. If an uninsured driver causes serious injury to you and/or passengers - that could be in the many hundreds of thousands of dollars - and your/their health insurance might not cover it. This is the very vital part of why you need it. In some states, it is required.
I'm curious, why would your health insurance not cover you if you are not at fault and hit by an uninsured driver? This would essentially put everyone at risk as perpetual health care (well into the millions) is often times needed for accidents and sometimes those accidents aren't even that bad, they just require a few months of expensive health care. This doesn't even address the serious stuff that requires a lifetime of care exceeding 8 figures when it's all said and done.
Your health insurance will cover your medical bills. It will not cover your lost wages, any pain/suffering, and will not step in for the loss of a sense or a permanent injury. The medical bills are the small part of an injury for many people.

JGoneRiding
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Re: Uninsured/underinsured insurance?

Post by JGoneRiding » Wed Oct 10, 2018 2:45 pm

Momus wrote:
Wed Oct 10, 2018 1:09 pm
I don't use it. I'll take my chances :twisted:
Why it costs like 2 to 5 a month for most coverage

deltaneutral83
Posts: 843
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Re: Uninsured/underinsured insurance?

Post by deltaneutral83 » Wed Oct 10, 2018 3:05 pm

jbmitt wrote:
Wed Oct 10, 2018 2:43 pm
Your health insurance will cover your medical bills. It will not cover your lost wages, any pain/suffering, and will not step in for the loss of a sense or a permanent injury. The medical bills are the small part of an injury for many people.
Thank you for the explanation, what would the circumstances be if you have an injury that prevents you from working for a considerable amount of time that exceeds even the highest level of coverage ($500k/$1M) you have with auto?? What can you do to mitigate that risk? If you're a high earner and unable to work for 24 months that could add up quickly. I assume some other form of disability ins is needed.

smackboy1
Posts: 999
Joined: Wed Mar 14, 2007 9:41 pm

Re: Uninsured/underinsured insurance?

Post by smackboy1 » Wed Oct 10, 2018 3:16 pm

UM/UIM insurance may also protect you even if you are not in your car i.e. if you are hurt by an uninsured driver when you are walking around or on a bicycle.

Another way to think about UM/UIM is that it's another pot of $ for you and your family/passengers. Liability and umbrella are to pay the other guy you hurt. Can you still earn a living if you lose your sight or lose your dominant hand? Do you carry long term care insurance to pay for a second wheelchair; a home aide to help you cook, clean, dress, bathe; move to another house if you can't walk up stairs? Just look at the news to see multiple injury/fatality accidents. What if the accident permanently disabled 3 other people who don't have health, disability, UM/UIM insurance? Even if the at fault driver has $200K liability insurance and $100K in the bank, how far is that pot going go spread over 4 permanently disabled victims? How many drivers do you think actually carry adequate liability insurance to cover a multiple party accident, let alone buy a $1MM umbrella policy.
Disclaimer: nothing written here should be taken as legal advice, but I did stay at a Holiday Inn Express last night.

jbmitt
Posts: 323
Joined: Mon Jul 14, 2008 1:00 am

Re: Uninsured/underinsured insurance?

Post by jbmitt » Wed Oct 10, 2018 3:32 pm

deltaneutral83 wrote:
Wed Oct 10, 2018 3:05 pm
jbmitt wrote:
Wed Oct 10, 2018 2:43 pm
Your health insurance will cover your medical bills. It will not cover your lost wages, any pain/suffering, and will not step in for the loss of a sense or a permanent injury. The medical bills are the small part of an injury for many people.
Thank you for the explanation, what would the circumstances be if you have an injury that prevents you from working for a considerable amount of time that exceeds even the highest level of coverage ($500k/$1M) you have with auto?? What can you do to mitigate that risk? If you're a high earner and unable to work for 24 months that could add up quickly. I assume some other form of disability ins is needed.
Own occupation disability is usually the route people will take. I’d imagine there may be other alternatives.

We have an umbrella policy that provides 2M in additional liability coverage, but is also endorsed to provide 2M in UM/UIM coverage. It makes the policy more expensive, but protects us in case we’re in an accident with insufficient limits.

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