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Old 08-20-2007, 01:38 PM   #21
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I am a firm believer in underinsured/uninsured motorist coverage. Your health insurance isn't going to replace your income if you can't work due to an accident. Health insurance won't pay for a nursing home if you are seriously injured. Health insurance won't pay for someone to come into your home and help out while you are recovering. What if your child is hurt and you have to take a leave from work to care for your child? Or your spouse?
When I worked in a law firm I saw up close how important this coverage can be.
Some people think that it would be a nightmare to be killed in an auto accident, but for me the bigger nightmare is surviving an auto accident.

We keep our UIM/UM coverage in case our daughter is so seriously injured that she'd need more lifetime care than our health insurance (TRICARE) will provide. I'm not talking about taking time off from work or months of physical therapy-- I'm talking about a lifetime of care providers to help cope with permanent brain- & body-damage.

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I am in the midst of reviewing my auto insurance, and it makes no sense! Car is paid off, and I am unsure how far above the minimum state guidelines I should get. No children or spouse to take leave from work for. I have my health insurance paying my bills now in the event of an accident.
TRICARE (and our pensions) "should" cover my spouse and myself if we're disabled for life. The real difficulty is figuring out where an insurer is going to draw the line between disability and long-term care. Will TRICARE cover decades of assistance with activities of daily living caused by an UIM/UM accident? Dementia & Alzheimers could require 10-15 years of LTC. What about decades of paralysis or a coma? What about the financial impact on family, SOs, & friends if they have to care for us?

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Can you afford to be without work for a long period of time while you recover from an accident? What if you needed someone to help care for you? Or needed a handicap van? Or modifications made to your home after an accident? Are you rich enough to self insure?
At some point, after our daughter is too old for us to insure on our auto or health policies, we'll have to decide whether it's worth continuing UIM/UM coverage for spouse & myself. I suspect that we'll decide in favor of being able to sleep at night, especially if the alternative could involve years of expensive legal haggling with one of the nation's largest health-care insurers. We should be able to self-insure for 10-15 years of LTC (considering that premiums may cost thousands of dollars a year) but UIM/UM is a lot cheaper for peace of mind for the rest of our lives.
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Old 08-20-2007, 01:40 PM   #22
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Hey now, I was one of those financially strapped people with a lousy credit score, who maintained bare bones/minimal car insurance at one time - and my driving record was squeaky clean!! (Thank goodness those days are loooong gone!) I still consider myself a good driver
OK, but I'll bet you weren't in the state's high risk pool. This is the issue I am ranting about - the fact that states allow those in the high risk pool (i.e. those who have demonstrated that they are bad drivers) to drive with such a low level of liability insurance.
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Old 08-20-2007, 01:46 PM   #23
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OK, but I'll bet you weren't in the state's high risk pool. This is the issue I am ranting about - the fact that states allow those in the high risk pool (i.e. those who have demonstrated that they are bad drivers) to drive with such a low level of liability insurance.
Oh heck, in those cases I don't think they should be allowed to drive at ALL. There should be SOME cut off point besides when the insurance becomes so expensive that Bill Gates can't even afford it.
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Old 08-20-2007, 01:50 PM   #24
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but UIM/UM is a lot cheaper for peace of mind for the rest of our lives
Agreed. In PA you can also stack the coverage (multiply by the number of vehicles on the policy) for a slightly higher premium. If you carry the max, you're looking at 1 million + in some cases.
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Old 08-20-2007, 01:57 PM   #25
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OK, but I'll bet you weren't in the state's high risk pool. This is the issue I am ranting about - the fact that states allow those in the high risk pool (i.e. those who have demonstrated that they are bad drivers) to drive with such a low level of liability insurance.
Quite the contrary, I was under 25. (would have been more $$$$ if I were male) Was not cheap! Cheapest I could find was $200/mo for a '78 Pinto!!! (this was 89-93) GACK! These days I pay less than $500 per year for much more insurance for a 2000 Stratus
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Old 08-20-2007, 02:05 PM   #26
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That's exactly what I'm talking about. That's also why I dont think it's fair. I've seen some very decent people with perfect driving records end up with tripled insurance rates because one of them lost their job and before they knew it, they had to file bankruptcy (my in-laws included).
I agree with you about the credit score thing. But as I understand it, some insurance companies use this to jack premiums on good drivers who happen to have bad credit. Sort of like the way the health insurance companies up-rate or reject people with relatively minor health issues.
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Old 08-20-2007, 02:17 PM   #27
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Quite the contrary, I was under 25. (would have been more $$$$ if I were male) Was not cheap! Cheapest I could find was $200/mo for a '78 Pinto!!! (this was 89-93) GACK! These days I pay less than $500 per year for much more insurance for a 2000 Stratus
Wait a minute. I don't understand this. Are you saying you could only get insurance from the state's high risk pool because of your credit rating? back in 1989? I didn't think insurance companies even looked at credit ratings back then.
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Old 08-20-2007, 02:20 PM   #28
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No I think she means because she was under 25 she was high risk, which, if things were then how they are now, she'd be correct!
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Old 08-20-2007, 02:33 PM   #29
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No I think she means because she was under 25 she was high risk, which, if things were then how they are now, she'd be correct!
I thought it was because she was driving a '78 Pinto...
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Old 08-20-2007, 02:43 PM   #30
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LMAO! Yes to all of you! Credit at that time was not a factor, but today, with those circumstances at that time, I'd be without insurance (could not afford it) There are lots of young people out there in similar situations - who are considered high risk (age, etc) have lousy credit, and low paying jobs - maybe with a ticket or two, but not a bona fide threat on the road. That was my point. Thank you for the chuckle! (especially about the Pinto! - but it was free!)
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Old 08-20-2007, 02:57 PM   #31
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LMAO
Not on the acronyms page, but I think I guessed it.
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Old 08-20-2007, 03:22 PM   #32
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I couldn't agree more. In Ohio, when I go to renew my car's annual registration I need to sign a declaration that I have insurance - like that's going to stop anybody! They should make you show proof of insurance when you renew your registration - that should make a huge difference.
In CT UIM coverage is mandatory. When you register or renew you must present insurance coverage and the insurance companies report you to DMV if you cancel your policy without obtaining other coverage.
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Old 08-20-2007, 03:26 PM   #33
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Wow.... quite the little firestorm that I started here. Not sure if that was a good or a bad thing. But I will question what CBear responded with. Still working on the quote feature. Please excuse my ignorance.

"Please keep in mind that many people don't have insurance because they can't PAY for insurance. They can't afford it, just like healthcare insurance."

So does that mean that just because people "need" something, means that they have a "right" to it, if they can afford it or not? Does someone have the "right" to a job, a home, a car, healthcare etc, just because they say that they "need" it, and cannot afford it? This country was founded on the idea of capitalism the last time I checked. Which means that if you want something in america you have to work to be able to afford it. Using the claim that they cannot afford it, absolves them of their responsibility somehow? And the reason that I implyed that if unable to pay, the insured motorist should get their car is a logical one as well. If a driver chooses to be irresponsible and not have insurance, then chances are they will not be able to pay the court fines either. Why is it wrong for me to want to be compensated for the destruction of my property? Being poor in this country, just like being rich, should not absolve you of things you have done. No one pays my way through life, and I do not want to pay anyone elses way against my will. If someone has stolen from me, or destroyed my property, then I expect to be compensated in some way for that, whether the person is wealthy or not. Being poor (or rich for that matter) is no excuse for irresponsible behavior. Thank you for your time....
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Old 08-20-2007, 07:38 PM   #34
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Considering that states with high illegal alien populations tend to have higher levels of uninsured drivers, and those people tend to be flight risks during or after an accident, not carrying uninsured coverage is way too risky for me. It raised our premiums by about $150/year for 3 cars. That's really not much.
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Old 08-20-2007, 09:26 PM   #35
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Thank you for the chuckle! (especially about the Pinto! - but it was free!)
Yeah, but they were supposed to pay you to take it off their hands... you got scammed!

No shame. I drove a 1989 Yugo for six months-- bought for $995 and sold for $995.

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Not on the acronyms page, but I think I guessed it.
On this board it stands for "Laughing My Assets Off"...
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Old 08-20-2007, 11:42 PM   #36
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This country was founded on the idea of capitalism the last time I checked. Which means that if you want something in america you have to work to be able to afford it.
Oh, yeah... now I recall...

"We hold these truths to be self-evident, that all men must earn their keep and pay their way if they want to play"

or maybe it was...

"We the people of the United States, in order to form a more perfect expression of capitalist incentive..."

Nope... not last time I checked.

This country was founded on more and higher ideals than that.

Might want to check again.

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Old 08-21-2007, 03:35 AM   #37
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WOW!

Thanks everyone!

I didn't think this topic would generate such interest and I'm surprised at how people are split on weather or not they think it worth it or not to have this insurance.

Maybe my best solution is to have it but not in really high amounts?

Jim
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Old 08-21-2007, 08:24 AM   #38
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My son was almost killed last year by a 15 yo driver who was fleeing the police at high speed and t-boned his car at 85 MPH. The kid took his parent's car without permission and they had the minimum level of insurance, which didn't even come close to paying for hospital and rehab bills, let alone the pain/suffering, unforeseen future medical expenses, and other out of pocket expenses we had. Also, many of these folks have little to no assets, so its not as if you can sue them for it. I suggest that everyone carry atleast $500K in uninsured/underinsured coverage, even if you have good healthcare coverage. By the way, I had $300K and a good healthcare policy and it wasn't near enough to cover total damages.
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Old 08-21-2007, 08:53 AM   #39
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On this board it stands for "Laughing My Assets Off"...
Oops! I guessed wrong!
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Old 08-21-2007, 09:03 AM   #40
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WOW!

Thanks everyone!

I didn't think this topic would generate such interest and I'm surprised at how people are split on weather or not they think it worth it or not to have this insurance.

Maybe my best solution is to have it but not in really high amounts?

Jim
No, you want the high amounts because the catastrophe is what you need to insure against. Listen to DFW_M5. Raise your deductible and increase your coverage limits.
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