Is uninsured motor vehicle insurance a good idea?

Questions on how we spend our money and our time - consumer goods and services, home and vehicle, leisure and recreational activities
lazydavid
Posts: 5350
Joined: Wed Apr 06, 2016 1:37 pm

Re: Is uninsured motor vehicle insurance a good idea?

Post by lazydavid »

farkis wrote: Thu Apr 04, 2024 10:33 am
lazydavid wrote: Thu Apr 04, 2024 10:28 am
farkis wrote: Thu Apr 04, 2024 10:21 am I would just sue the person who doesn't have enough or any insurance
Congratulations, you've secured a $200k verdict against someone with a -$27k net worth. Now what?
Go after them. Garnish their wages and benefits for life.
Good luck with that. You will spend far more pursuing them than you will ever recover, if you ever get anything at all. It might be worth familiarizing yourself with the term "judgement proof".
farkis
Posts: 14
Joined: Sun Dec 10, 2023 5:01 pm

Re: Is uninsured motor vehicle insurance a good idea?

Post by farkis »

lazydavid wrote: Thu Apr 04, 2024 10:49 am
farkis wrote: Thu Apr 04, 2024 10:33 am
lazydavid wrote: Thu Apr 04, 2024 10:28 am
farkis wrote: Thu Apr 04, 2024 10:21 am I would just sue the person who doesn't have enough or any insurance
Congratulations, you've secured a $200k verdict against someone with a -$27k net worth. Now what?
Go after them. Garnish their wages and benefits for life.
Good luck with that. You will spend far more pursuing them than you will ever recover, if you ever get anything at all. It might be worth familiarizing yourself with the term "judgement proof".
It'd be worth it to send a message to all those uninsured, we're sick and tired of paying for them.
lazydavid
Posts: 5350
Joined: Wed Apr 06, 2016 1:37 pm

Re: Is uninsured motor vehicle insurance a good idea?

Post by lazydavid »

farkis wrote: Thu Apr 04, 2024 11:23 am
lazydavid wrote: Thu Apr 04, 2024 10:49 am
farkis wrote: Thu Apr 04, 2024 10:33 am
lazydavid wrote: Thu Apr 04, 2024 10:28 am
farkis wrote: Thu Apr 04, 2024 10:21 am I would just sue the person who doesn't have enough or any insurance
Congratulations, you've secured a $200k verdict against someone with a -$27k net worth. Now what?
Go after them. Garnish their wages and benefits for life.
Good luck with that. You will spend far more pursuing them than you will ever recover, if you ever get anything at all. It might be worth familiarizing yourself with the term "judgement proof".
It'd be worth it to send a message to all those uninsured, we're sick and tired of paying for them.
That message being received by anyone is even less likely than your collecting on the judgement. But knock yourself out I guess.
farkis
Posts: 14
Joined: Sun Dec 10, 2023 5:01 pm

Re: Is uninsured motor vehicle insurance a good idea?

Post by farkis »

lazydavid wrote: Thu Apr 04, 2024 11:38 am
farkis wrote: Thu Apr 04, 2024 11:23 am
lazydavid wrote: Thu Apr 04, 2024 10:49 am
farkis wrote: Thu Apr 04, 2024 10:33 am
lazydavid wrote: Thu Apr 04, 2024 10:28 am

Congratulations, you've secured a $200k verdict against someone with a -$27k net worth. Now what?
Go after them. Garnish their wages and benefits for life.
Good luck with that. You will spend far more pursuing them than you will ever recover, if you ever get anything at all. It might be worth familiarizing yourself with the term "judgement proof".
It'd be worth it to send a message to all those uninsured, we're sick and tired of paying for them.
That message being received by anyone is even less likely than your collecting on the judgement. But knock yourself out I guess.
Beats the alternative of doing nothing and expecting something different.
tomasm
Posts: 21
Joined: Tue Jan 09, 2024 12:46 pm

Re: Is uninsured motor vehicle insurance a good idea?

Post by tomasm »

farkis wrote: Thu Apr 04, 2024 1:34 pm Beats the alternative of doing nothing and expecting something different.
Driving without insurance is illegal in nearly every US state and those who are caught are fined. People who don't have insurance probably don't have money to pay for insurance or the fines. Or to pay (or garnish wages/benefits) for your damages when they hit you. Not much else can be done. You could send them to prison but then you are paying for that as a taxpayer. That's why UIM coverage is available to purchase. In some states it's mandatory.
bgf
Posts: 2094
Joined: Fri Nov 10, 2017 8:35 am

Re: Is uninsured motor vehicle insurance a good idea?

Post by bgf »

AS7911 wrote: Wed Apr 03, 2024 9:48 pm
bgf wrote: Wed Apr 03, 2024 6:42 am
AS7911 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.
If you go through health insurance then you’ll be limited by what the insurance covers and approved. If you’re T-boned and break your legs, and you need additional physical therapy because you were an avid hiker, rock climber, or ‘pick your activity,’ and health insurance says walking is “good enough” then you’ll have to pay out of pocket.

This is what happened to me when I ruptured my Achilles. I was back to walking but not playing soccer. Yet, my insurance had already paid the PT limit for that year.

Everyone’s insurance is different, but health insurance is going to have some limit on duration and nature of treatment.

UM follows tort law, meaning you’ll be compensated to the point you are recovered to your condition prior to the accident. So long as the treatment is “reasonable and necessary” the other party is liable for it.
Confused. Aren't you limited by the amount of your insurance? If you've got a $100k UIM policy, no law will order it to pay $101k, will it?
It’s not confusing. If you have $100,000 in UM coverage then you will have $100,000 to place towards any medical treatment you want/need caused by the accident, without the health insurance company rejecting the recommendation from your doctor due to: experimental, “not indicated,” ‘do this first’ or any of the million rejection excuses you can get from a health insurance carrier.

This is a fundamental distinction people miss here. UM coverage = money. Health insurance coverage most certainly does not.
“TE OCCIDERE POSSUNT SED TE EDERE NON POSSUNT NEFAS EST"
User avatar
inittowinit
Posts: 226
Joined: Thu Jul 05, 2012 6:37 pm

Re: Is uninsured motor vehicle insurance a good idea?

Post by inittowinit »

Yes, consider uninsured and underinsured motorist insurance as a mandatory rider with sufficient limits. It is extremely cost effective.
madbrain
Posts: 7552
Joined: Thu Jun 09, 2011 5:06 pm
Location: San Jose, California

Re: Is uninsured motor vehicle insurance a good idea?

Post by madbrain »

farkis wrote: Thu Apr 04, 2024 10:21 am I would just sue the person who doesn't have enough or any insurance
That will not work very well in a hit and run if you are injured and unable to write down the license plate.

Even if you are able to take down the plate, sometimes it is out of state, and the driver cannot be located. Not to speak of people who drive without any license plates, or just rear plate but not front. They are not so rare though I see fewer of them now that CA mandates instant temporary plates even on new cars.
madbrain
Posts: 7552
Joined: Thu Jun 09, 2011 5:06 pm
Location: San Jose, California

Re: Is uninsured motor vehicle insurance a good idea?

Post by madbrain »

tomasm wrote: Thu Apr 04, 2024 3:31 pm
farkis wrote: Thu Apr 04, 2024 1:34 pm Beats the alternative of doing nothing and expecting something different.
Driving without insurance is illegal in nearly every US state and those who are caught are fined. People who don't have insurance probably don't have money to pay for insurance or the fines. Or to pay (or garnish wages/benefits) for your damages when they hit you. Not much else can be done. You could send them to prison but then you are paying for that as a taxpayer. That's why UIM coverage is available to purchase. In some states it's mandatory.
Exactly. And putting these uninsured drivers in prison would still not pay for your injuries.

Also, many people comply with the law, and are still underinsured, because the state mandates very low liability coverage minimum of $15k - $60k typically.

That may be enough to cover property damage, but it will quickly be exhausted if you are injured.
Last edited by madbrain on Thu Apr 04, 2024 7:08 pm, edited 1 time in total.
AS7911
Posts: 650
Joined: Wed Feb 07, 2018 12:55 pm

Re: Is uninsured motor vehicle insurance a good idea?

Post by AS7911 »

bgf wrote: Thu Apr 04, 2024 4:56 pm
AS7911 wrote: Wed Apr 03, 2024 9:48 pm
bgf wrote: Wed Apr 03, 2024 6:42 am
AS7911 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.
If you go through health insurance then you’ll be limited by what the insurance covers and approved. If you’re T-boned and break your legs, and you need additional physical therapy because you were an avid hiker, rock climber, or ‘pick your activity,’ and health insurance says walking is “good enough” then you’ll have to pay out of pocket.

This is what happened to me when I ruptured my Achilles. I was back to walking but not playing soccer. Yet, my insurance had already paid the PT limit for that year.

Everyone’s insurance is different, but health insurance is going to have some limit on duration and nature of treatment.

UM follows tort law, meaning you’ll be compensated to the point you are recovered to your condition prior to the accident. So long as the treatment is “reasonable and necessary” the other party is liable for it.
Confused. Aren't you limited by the amount of your insurance? If you've got a $100k UIM policy, no law will order it to pay $101k, will it?
It’s not confusing. If you have $100,000 in UM coverage then you will have $100,000 to place towards any medical treatment you want/need caused by the accident, without the health insurance company rejecting the recommendation from your doctor due to: experimental, “not indicated,” ‘do this first’ or any of the million rejection excuses you can get from a health insurance carrier.

This is a fundamental distinction people miss here. UM coverage = money. Health insurance coverage most certainly does not.
What was confusing is that someone earlier posted that there were laws that could require an insurance company to pay for than your UM coverage amount.

The issue, bgf, is my understanding is you wont get that $100k UM coverage to pay for additional expenses, but if the injuries are that major, that $100K will go to your medical insurance company via subrogation (= reimbursement). There will be none left for you. Now if one wants to carry $500k, or $1M, there may be some recovery possible.
User avatar
bottlecap
Posts: 6920
Joined: Tue Mar 06, 2007 10:21 pm
Location: Tennessee

Re: Is uninsured motor vehicle insurance a good idea?

Post by bottlecap »

bottlecap wrote: Wed Apr 03, 2024 3:12 pm
fortunefavored wrote: Wed Apr 03, 2024 2:41 pmThe only thing your UM will add is paying for your deductibles/copays or other non-covered expenses.
It will cover personal injury as well, for both you and your family.

Health insurance will pay for your medical bills, but once those are paid, what does your paralyzed kid live on for the rest of their life?

JT
I mistook your statement above to be a general statement about UM/UIM.

If that's all the OP has in insurance, all the limits are too low. Start with increasing the liability insurance limits. $50,000/$100,000 won’t cover personal injuries in a serious wreck and, really, a serious wreck is what people with assets really need to worry about.

I have the maximum coverage in my state and an umbrella that kicks in.

JT
bgf
Posts: 2094
Joined: Fri Nov 10, 2017 8:35 am

Re: Is uninsured motor vehicle insurance a good idea?

Post by bgf »

AS7911 wrote: Thu Apr 04, 2024 6:50 pm
bgf wrote: Thu Apr 04, 2024 4:56 pm
AS7911 wrote: Wed Apr 03, 2024 9:48 pm
bgf wrote: Wed Apr 03, 2024 6:42 am
AS7911 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.
If you go through health insurance then you’ll be limited by what the insurance covers and approved. If you’re T-boned and break your legs, and you need additional physical therapy because you were an avid hiker, rock climber, or ‘pick your activity,’ and health insurance says walking is “good enough” then you’ll have to pay out of pocket.

This is what happened to me when I ruptured my Achilles. I was back to walking but not playing soccer. Yet, my insurance had already paid the PT limit for that year.

Everyone’s insurance is different, but health insurance is going to have some limit on duration and nature of treatment.

UM follows tort law, meaning you’ll be compensated to the point you are recovered to your condition prior to the accident. So long as the treatment is “reasonable and necessary” the other party is liable for it.
Confused. Aren't you limited by the amount of your insurance? If you've got a $100k UIM policy, no law will order it to pay $101k, will it?
It’s not confusing. If you have $100,000 in UM coverage then you will have $100,000 to place towards any medical treatment you want/need caused by the accident, without the health insurance company rejecting the recommendation from your doctor due to: experimental, “not indicated,” ‘do this first’ or any of the million rejection excuses you can get from a health insurance carrier.

This is a fundamental distinction people miss here. UM coverage = money. Health insurance coverage most certainly does not.
What was confusing is that someone earlier posted that there were laws that could require an insurance company to pay for than your UM coverage amount.

The issue, bgf, is my understanding is you wont get that $100k UM coverage to pay for additional expenses, but if the injuries are that major, that $100K will go to your medical insurance company via subrogation (= reimbursement). There will be none left for you. Now if one wants to carry $500k, or $1M, there may be some recovery possible.
I’ll give a very simple example for my state. You get rear ended by a pickup truck at a red light. You were at a complete stop. There was nothing you could do. The other driver forgot to make his insurance payment on time last week, so his carrier canceled his coverage due to nonpayment. He’ll make the payment in a few days and coverage will be reinstated but it won’t cover the accident. This is extremely common, by the way.

Overall you’re ok. But your wrist really hurts. You end up needing surgery and PT. You can’t work due to your injury, so you’re laid off. You need additional PT because your job requires more than just average performance with your hands. Ultimately it takes 6 months and additional treatment to get better.

$100,000 in UM coverage would probably make you whole in this scenario. Health insurance would not. You’d be out your deductible, copays, etc. You’d be out all your lost wages. You would receive no compensation for the pain and difficulty in taking care of yourself while injured.

You’re also all guaranteed to get hosed on your property damage claim. Trust me that you will not get what you think is fair.

I could not care less whether you have UM coverage. Makes no difference to me, but to contend that UM coverage is pointless is just plain wrong.
“TE OCCIDERE POSSUNT SED TE EDERE NON POSSUNT NEFAS EST"
fortunefavored
Posts: 1465
Joined: Tue Jun 02, 2015 8:18 pm

Re: Is uninsured motor vehicle insurance a good idea?

Post by fortunefavored »

bgf wrote: Fri Apr 05, 2024 6:36 am I’ll give a very simple example for my state. You get rear ended by a pickup truck at a red light. You were at a complete stop. There was nothing you could do. The other driver forgot to make his insurance payment on time last week, so his carrier canceled his coverage due to nonpayment. He’ll make the payment in a few days and coverage will be reinstated but it won’t cover the accident. This is extremely common, by the way.

Overall you’re ok. But your wrist really hurts. You end up needing surgery and PT. You can’t work due to your injury, so you’re laid off. You need additional PT because your job requires more than just average performance with your hands. Ultimately it takes 6 months and additional treatment to get better.

$100,000 in UM coverage would probably make you whole in this scenario. Health insurance would not. You’d be out your deductible, copays, etc. You’d be out all your lost wages. You would receive no compensation for the pain and difficulty in taking care of yourself while injured.

You’re also all guaranteed to get hosed on your property damage claim. Trust me that you will not get what you think is fair.

I could not care less whether you have UM coverage. Makes no difference to me, but to contend that UM coverage is pointless is just plain wrong.
It can be pointless for some scenarios, but plenty of people say it was ESSENTIAL without understanding what it pays out. Confusing it with liability insurance. Confusing it with collision insurance. Not knowing what their limits are.

Even in your scenario, it isn't as obvious. To get pain and suffering (assuming your state even allows this), lost wages, and unapproved medical claims, you will need an attorney and sue or settle. Typical attorney will take half and insurance companies know that, so likely you'd accept 60 to 70%.

Now if you up that UM limit to $1M, that can take care of catastrophic scenarios. If it is offered and affordable in your state.
farkis
Posts: 14
Joined: Sun Dec 10, 2023 5:01 pm

Re: Is uninsured motor vehicle insurance a good idea?

Post by farkis »

tomasm wrote: Thu Apr 04, 2024 3:31 pm
farkis wrote: Thu Apr 04, 2024 1:34 pm Beats the alternative of doing nothing and expecting something different.
Driving without insurance is illegal in nearly every US state and those who are caught are fined. People who don't have insurance probably don't have money to pay for insurance or the fines. Or to pay (or garnish wages/benefits) for your damages when they hit you. Not much else can be done. You could send them to prison but then you are paying for that as a taxpayer. That's why UIM coverage is available to purchase. In some states it's mandatory.
People without insurance should not be driving. That's what public transportation is for.
Most of us are fed up with those that don't play by the rules.
There's the poor, which we help, and there's those who feel entitled and scam the system.
farkis
Posts: 14
Joined: Sun Dec 10, 2023 5:01 pm

Re: Is uninsured motor vehicle insurance a good idea?

Post by farkis »

madbrain wrote: Thu Apr 04, 2024 5:06 pm
farkis wrote: Thu Apr 04, 2024 10:21 am I would just sue the person who doesn't have enough or any insurance
That will not work very well in a hit and run if you are injured and unable to write down the license plate.

Even if you are able to take down the plate, sometimes it is out of state, and the driver cannot be located. Not to speak of people who drive without any license plates, or just rear plate but not front. They are not so rare though I see fewer of them now that CA mandates instant temporary plates even on new cars.
Dashcams are cheap.
And voting with your feet by moving to a place that plays by the rules, well, that's what's been happening over the past few years.
AS7911
Posts: 650
Joined: Wed Feb 07, 2018 12:55 pm

Re: Is uninsured motor vehicle insurance a good idea?

Post by AS7911 »

bgf wrote: Fri Apr 05, 2024 6:36 am
AS7911 wrote: Thu Apr 04, 2024 6:50 pm
bgf wrote: Thu Apr 04, 2024 4:56 pm
AS7911 wrote: Wed Apr 03, 2024 9:48 pm
bgf wrote: Wed Apr 03, 2024 6:42 am

If you go through health insurance then you’ll be limited by what the insurance covers and approved. If you’re T-boned and break your legs, and you need additional physical therapy because you were an avid hiker, rock climber, or ‘pick your activity,’ and health insurance says walking is “good enough” then you’ll have to pay out of pocket.

This is what happened to me when I ruptured my Achilles. I was back to walking but not playing soccer. Yet, my insurance had already paid the PT limit for that year.

Everyone’s insurance is different, but health insurance is going to have some limit on duration and nature of treatment.

UM follows tort law, meaning you’ll be compensated to the point you are recovered to your condition prior to the accident. So long as the treatment is “reasonable and necessary” the other party is liable for it.
Confused. Aren't you limited by the amount of your insurance? If you've got a $100k UIM policy, no law will order it to pay $101k, will it?
It’s not confusing. If you have $100,000 in UM coverage then you will have $100,000 to place towards any medical treatment you want/need caused by the accident, without the health insurance company rejecting the recommendation from your doctor due to: experimental, “not indicated,” ‘do this first’ or any of the million rejection excuses you can get from a health insurance carrier.

This is a fundamental distinction people miss here. UM coverage = money. Health insurance coverage most certainly does not.
What was confusing is that someone earlier posted that there were laws that could require an insurance company to pay for than your UM coverage amount.

The issue, bgf, is my understanding is you wont get that $100k UM coverage to pay for additional expenses, but if the injuries are that major, that $100K will go to your medical insurance company via subrogation (= reimbursement). There will be none left for you. Now if one wants to carry $500k, or $1M, there may be some recovery possible.
I’ll give a very simple example for my state. You get rear ended by a pickup truck at a red light. You were at a complete stop. There was nothing you could do. The other driver forgot to make his insurance payment on time last week, so his carrier canceled his coverage due to nonpayment. He’ll make the payment in a few days and coverage will be reinstated but it won’t cover the accident. This is extremely common, by the way.

Overall you’re ok. But your wrist really hurts. You end up needing surgery and PT. You can’t work due to your injury, so you’re laid off. You need additional PT because your job requires more than just average performance with your hands. Ultimately it takes 6 months and additional treatment to get better.

$100,000 in UM coverage would probably make you whole in this scenario. Health insurance would not. You’d be out your deductible, copays, etc. You’d be out all your lost wages. You would receive no compensation for the pain and difficulty in taking care of yourself while injured.

You’re also all guaranteed to get hosed on your property damage claim. Trust me that you will not get what you think is fair.

I could not care less whether you have UM coverage. Makes no difference to me, but to contend that UM coverage is pointless is just plain wrong.
Even in the example you provide, everything, except pain and suffering is already covered by other insurance policies many people already have.
If one didnt already have good health insurance, disability insurance, paid sick leave, collision insurance, etc, then a UIM policy might indeed add value.
fortunefavored
Posts: 1465
Joined: Tue Jun 02, 2015 8:18 pm

Re: Is uninsured motor vehicle insurance a good idea?

Post by fortunefavored »

AS7911 wrote: Fri Apr 05, 2024 9:09 am Even in the example you provide, everything, except pain and suffering is already covered by other insurance policies many people already have.
If one didnt already have good health insurance, disability insurance, paid sick leave, collision insurance, etc, then a UIM policy might indeed add value.
I think UM needs a rebranding: "Uninsured Motorist Gap Insurance" - it covers the gaps in your other policies in the narrow case that you are involved with an uninsured driver.

ie:
You (and your passengers) have a $1000 collision deductible (UM covers this gap)
You/passengers have a $8900 per year max out of pocket on your medical (UM covers this gap)
You/passengers have medically prescribed needs that are not covered in your medical insurance (wheelchair ramp, assistive devices, extra physical therapy treatments etc. UM covers this gap.)

Where it gets fuzzier are things that are not generally approved by default:
Lost wages (gap between short term disability, long term disability or your own disability policies)
Pain and suffering (very tough to prove)
Non-medically prescribed treatments (example: You decide to get a spinal fusion and your HMO doctors say no and you want to do it anyways)

Those last group are not generally going to be covered without a lot of hassle. Insurance companies don't get rich writing checks for whatever people claim they deserve. :)
madbrain
Posts: 7552
Joined: Thu Jun 09, 2011 5:06 pm
Location: San Jose, California

Re: Is uninsured motor vehicle insurance a good idea?

Post by madbrain »

farkis wrote: Fri Apr 05, 2024 8:22 am And voting with your feet by moving to a place that plays by the rules, well, that's what's been happening over the past few years.
Would you care to name this magical place where everyone is insured, carries suitably high liability limits - far in excess of the state minimum, and keeps their plates and registration up to date ?
madbrain
Posts: 7552
Joined: Thu Jun 09, 2011 5:06 pm
Location: San Jose, California

Re: Is uninsured motor vehicle insurance a good idea?

Post by madbrain »

AS7911 wrote: Wed Apr 03, 2024 9:51 pm That last part doesnt make sense to me. UIM pays damage to the insured person. Umbrella is to pay damages to others.
I confirmed with my Farmer's agent today that they can add UM/UIM coverage to my $3M umbrella policy for $68.93 per 6 months. Have not decided whether to add it yet.
evancox10
Posts: 508
Joined: Tue Jun 28, 2011 11:25 pm

Re: Is uninsured motor vehicle insurance a good idea?

Post by evancox10 »

AS7911 wrote: Fri Apr 05, 2024 9:09 am
bgf wrote: Fri Apr 05, 2024 6:36 am
AS7911 wrote: Thu Apr 04, 2024 6:50 pm
bgf wrote: Thu Apr 04, 2024 4:56 pm
AS7911 wrote: Wed Apr 03, 2024 9:48 pm

Confused. Aren't you limited by the amount of your insurance? If you've got a $100k UIM policy, no law will order it to pay $101k, will it?
It’s not confusing. If you have $100,000 in UM coverage then you will have $100,000 to place towards any medical treatment you want/need caused by the accident, without the health insurance company rejecting the recommendation from your doctor due to: experimental, “not indicated,” ‘do this first’ or any of the million rejection excuses you can get from a health insurance carrier.

This is a fundamental distinction people miss here. UM coverage = money. Health insurance coverage most certainly does not.
What was confusing is that someone earlier posted that there were laws that could require an insurance company to pay for than your UM coverage amount.

The issue, bgf, is my understanding is you wont get that $100k UM coverage to pay for additional expenses, but if the injuries are that major, that $100K will go to your medical insurance company via subrogation (= reimbursement). There will be none left for you. Now if one wants to carry $500k, or $1M, there may be some recovery possible.
I’ll give a very simple example for my state. You get rear ended by a pickup truck at a red light. You were at a complete stop. There was nothing you could do. The other driver forgot to make his insurance payment on time last week, so his carrier canceled his coverage due to nonpayment. He’ll make the payment in a few days and coverage will be reinstated but it won’t cover the accident. This is extremely common, by the way.

Overall you’re ok. But your wrist really hurts. You end up needing surgery and PT. You can’t work due to your injury, so you’re laid off. You need additional PT because your job requires more than just average performance with your hands. Ultimately it takes 6 months and additional treatment to get better.

$100,000 in UM coverage would probably make you whole in this scenario. Health insurance would not. You’d be out your deductible, copays, etc. You’d be out all your lost wages. You would receive no compensation for the pain and difficulty in taking care of yourself while injured.

You’re also all guaranteed to get hosed on your property damage claim. Trust me that you will not get what you think is fair.

I could not care less whether you have UM coverage. Makes no difference to me, but to contend that UM coverage is pointless is just plain wrong.
Even in the example you provide, everything, except pain and suffering is already covered by other insurance policies many people already have.
If one didnt already have good health insurance, disability insurance, paid sick leave, collision insurance, etc, then a UIM policy might indeed add value.
Exactly, and there is no price reduction for having those other coverages in place. If you already have banked PTO, STD, and LTD, you’re getting a bad deal on UIM compared to those who don’t have those benefits.
madbrain
Posts: 7552
Joined: Thu Jun 09, 2011 5:06 pm
Location: San Jose, California

Re: Is uninsured motor vehicle insurance a good idea?

Post by madbrain »

evancox10 wrote: Fri Apr 05, 2024 10:27 pm Exactly, and there is no price reduction for having those other coverages in place. If you already have banked PTO, STD, and LTD, you’re getting a bad deal on UIM compared to those who don’t have those benefits.
Not sure how the PTO is relevant. STD/LTD are.
These are often employer group policies, which may or may not be adequate, and can lapse if your employment ends. And it very well might if you become disabled permanently. LTD benefits may continue after termination, but if the employer cancels the group policy, it may be a problem. It is not possible for me buy individual STD/LTD policies due to underwriting. In some states, there are state disability programs. I agree that a discount for having STD/LTD policies makes sense. But it isn't sufficient for me to consider dropping UI/UM.
User avatar
LadyGeek
Site Admin
Posts: 96723
Joined: Sat Dec 20, 2008 4:34 pm
Location: Philadelphia
Contact:

Re: Is uninsured motor vehicle insurance a good idea?

Post by LadyGeek »

I removed an off-topic post. As a reminder, see: Politics and Religion
In order to avoid the inevitable frictions that arise from these topics, political or religious posts and comments are prohibited. The only exceptions to this rule are:
  • Common religious expressions such as sending your prayers to an ailing member.
  • Usage of factual and non-derogatory political labels when necessary to the discussion at hand.
  • Discussions about enacted laws or regulations that affect the individual investor. Note that discussions of proposed legislation are prohibited.
  • Proposed regulations that are directly related to investing may be discussed if and when they are published for public comments.
Wiki To some, the glass is half full. To others, the glass is half empty. To an engineer, it's twice the size it needs to be.
Post Reply