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Uninsured Motorist on Auto Ins.
Old 06-06-2005, 08:41 AM   #1
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Uninsured Motorist on Auto Ins.

I'm looking at my car insurance for the first time in a few years - State Farm keeps going up and up and up. Decided to ditch collision and comp. on my 1994 Toyota which will save me a few and seems to make sense. Liberty Mutual has some great rates so it looks like I'll switch and save hundreds a year on the 2 cars.

I've never had uninsured motorist coverage. I've always gone under the assumption that any medical issues that I might face from some uninsured driver hitting me and causing injuries would be bourne by my health insurance (not yet at catastrophic coverage as we are still working and have good plans). A friend commented yesterday that they would not cover it. Not sure about that and plan to investigate. Hmmmmm.

Your thoughts:

1. Uninsured motorist coverage - yea or nay

1a. Uninsured motorist coverage if you have only catastrphic health coverage (let's say $5k deduct) - yea or nay
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Re: Uninsured Motorist on Auto Ins.
Old 06-06-2005, 08:46 AM   #2
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Re: Uninsured Motorist on Auto Ins.

Absolutely vote for uninsured and underinsured coverage. Insurance doesn't just provide for your medical costs. What if you are unable to work and have lost wages for a period of time? What if you never can work again? Your health insurance won't cover that.

I view this coverage as a necessity.
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Re: Uninsured Motorist on Auto Ins.
Old 06-06-2005, 09:51 AM   #3
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Re: Uninsured Motorist on Auto Ins.

I dropped Personal Injury Protection once expecting my health insurance to cover, but I didn't save much at all. A few bucks. I have it back now. Besides, many health plans have $1mil lifetime limits, and having health bills from a wreck could add up to a few tens of thousands or more fast and might require ongoing costs like back pain medicine or therapy. I hadn't thought about lost wages.

You probably already know to buy more than the required minimum. $25k doesn't cover a lot of medium-ranged new cars, and there are a lot of Hummers and Lexuses out there. Come to think of it I might need to bump up from $50k property coverage.
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Re: Uninsured Motorist on Auto Ins.
Old 06-06-2005, 10:17 AM   #4
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Re: Uninsured Motorist on Auto Ins.

Quote:
Originally Posted by Arin38
I'm looking at my car insurance for the first time in a few years - State Farm keeps going up and up and up. Decided to ditch collision and comp. on my 1994 Toyota which will save me a few and seems to make sense. Liberty Mutual has some great rates so it looks like I'll switch and save hundreds a year on the 2 cars.

I've never had uninsured motorist coverage. I've always gone under the assumption that any medical issues that I might face from some uninsured driver hitting me and causing injuries would be bourne by my health insurance (not yet at catastrophic coverage as we are still working and have good plans). A friend commented yesterday that they would not cover it. Not sure about that and plan to investigate.* Hmmmmm.

Your thoughts:

1. Uninsured motorist coverage - yea or nay

1a. Uninsured motorist coverage if you have only catastrphic health coverage (let's say $5k deduct) - yea or nay
I have uninsured motorist and comp. and towing (high deductible on the comp). Thinking about rolling the dice and switching to the minimums
required by Illinois to be legal. Risky, but so is living.

JG
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Re: Uninsured Motorist on Auto Ins.
Old 06-06-2005, 10:33 AM   #5
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Re: Uninsured Motorist on Auto Ins.

Quote:
Originally Posted by MRGALT2U
Thinking about rolling the dice and switching to the minimums
required by Illinois to be legal. Risky, but so is living.
Been a few years since I priced, but I don't recall the extra coverage adding much at all. In fact I went for $500 deductible over $1000 just because the difference in premiums was so tiny. I don't remember what the extra coverage cost, but I recall being surprised at how little it cost. That first $25k is what you pay for more than anything else.
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Re: Uninsured Motorist on Auto Ins.
Old 06-06-2005, 10:49 AM   #6
 
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Re: Uninsured Motorist on Auto Ins.

This has absolutely nothing to do with the thread, but I post this periodically for 1) pity, and 2) to make everyone else think that, maybe, they have a great deal on auto insurance:

My yearly insurance for one car (modest Toyota) is $4500.
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Re: Uninsured Motorist on Auto Ins.
Old 06-06-2005, 10:57 AM   #7
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Re: Uninsured Motorist on Auto Ins.

Quote:
Originally Posted by tozz
My yearly insurance for one car (modest Toyota) is $4500.
I pay $60/month, but that includes renter's insurance of around $15, so my yearly full coverage, above-minimum car premiums are under $600/year. And that's State Farm. What are you people doing?

It does help to live in the county next to the big city instead of the county the big city is in, but that's not the difference between $600 and $4500.
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Re: Uninsured Motorist on Auto Ins.
Old 06-06-2005, 11:21 AM   #8
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Re: Uninsured Motorist on Auto Ins.

Tozz...ok i'll bite...why are you paying more for one toyota than I am for house, 2 cars and a huge umbrella liability policy? By about a factor of two?
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Re: Uninsured Motorist on Auto Ins.
Old 06-06-2005, 11:26 AM   #9
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Re: Uninsured Motorist on Auto Ins.

Quote:
Originally Posted by tozz
... and 2) to make everyone else think that, maybe, they have a great deal on auto insurance:

My yearly insurance for one car (modest Toyota) is $4500.
We think you should start checking into public transportation. Or hire a limo!
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Re: Uninsured Motorist on Auto Ins.
Old 06-06-2005, 11:33 AM   #10
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Re: Uninsured Motorist on Auto Ins.

Quote:
Originally Posted by Arin38
Decided to ditch collision and comp. on my 1994 Toyota which will save me a few and seems to make sense. Liberty Mutual has some great rates so it looks like I'll switch and save hundreds a year on the 2 cars.

I've never had uninsured motorist coverage. I've always gone under the assumption that any medical issues that I might face from some uninsured driver hitting me and causing injuries would be bourne by my health insurance (not yet at catastrophic coverage as we are still working and have good plans). A friend commented yesterday that they would not cover it. Not sure about that and plan to investigate.* Hmmmmm.

Your thoughts:

1. Uninsured motorist coverage - yea or nay

1a. Uninsured motorist coverage if you have only catastrphic health coverage (let's say $5k deduct) - yea or nay
Ditching the collision & comp is a great idea.

Switching insurance companies might ratchet down the levels of support & service. If you're hearing great things about the company then it's probably fine. As a Berkshire shareholder I'm required to ask if you've obtained your GEICO quote...

Every medical plan should have some sort of ombudsman or patient advocate who can tell you the rules for auto accidents (as well as showing you the references). But disability & lost income are generally not covered by auto or medical policies. Spouse and I are covered medically, and so is our kid up until her low 20s, but we keep UM/UIM in case some derelict puts her into a lifetime of disability and we need the funding to support her care. When she's on her own we'll probably drop the UM/UIM.

It's estimated that as many as 25% of Hawaii's drivers do not have insurance. (Another reason to pay at the pump?)
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Re: Uninsured Motorist on Auto Ins.
Old 06-06-2005, 11:36 AM   #11
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Re: Uninsured Motorist on Auto Ins.

Try the uninsured rate in CA... :P

Having the UM coverage here is practically essential.

Dropping your coverage to bare minimum to save a hundred or two a year when you have six figures in assets and several pieces of property is the second dumbest thing I've heard of in my life.
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Re: Uninsured Motorist on Auto Ins.
Old 06-06-2005, 11:50 AM   #12
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Re: Uninsured Motorist on Auto Ins.

Quote:
Originally Posted by th
Dropping your coverage to bare minimum to save a hundred or two a year when you have six figures in assets and several pieces of property is the second dumbest thing I've heard of in my life.
C'mon, I'm a nuke. Self-insurance is a decision that depends on analyzing the dollars, and we determined that investing the premium savings would pay for replacement vehicles. Of course this math only works for used cars and not new SUVs. And you still have to sleep at night.

Besides, it really hurts to shell out money to insure an asset whose depreciated value reached zero in the last millenium. Not that it takes long for a Taurus.

And it's great practice. It's being able to analyze those "hundred or two a year" situations that enables people to get to the "six figures & several pieces of property"...

OK, I give up. What's the dumbest?!?
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Re: Uninsured Motorist on Auto Ins.
Old 06-06-2005, 12:11 PM   #13
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Re: Uninsured Motorist on Auto Ins.

Actually it was the part about dropping the liability to the bare minimum, which John has brought up before. He was only held up by his agent refusing to do it, which makes him a darn good agent.

Quote:
Originally Posted by Nords
OK, I give up. What's the dumbest?!?
There isnt a dumber one. I just wanted to slot this into #2 in case something dumber came along so I didnt have to come back and readjust this from #1 to #2. I'm that lazy.
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Re: Uninsured Motorist on Auto Ins.
Old 06-06-2005, 12:47 PM   #14
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Re: Uninsured Motorist on Auto Ins.

Quote:
Originally Posted by Nords
Ditching the collision & comp is a great idea.

Switching insurance companies might ratchet down the levels of support & service.* If you're hearing great things about the company then it's probably fine.* As a Berkshire shareholder I'm required to ask if you've obtained your GEICO quote...

Every medical plan should have some sort of ombudsman or patient advocate who can tell you the rules for auto accidents (as well as showing you the references).* But disability & lost income are generally not covered by auto or medical policies.* Spouse and I are covered medically, and so is our kid up until her low 20s, but we keep UM/UIM in case some derelict puts her into a lifetime of disability and we need the funding to support her care.* When she's on her own we'll probably drop the UM/UIM.*

It's estimated that as many as 25% of Hawaii's drivers do not have insurance.* (Another reason to pay at the pump?)
Nords: Dropping your collision and comp. on a car at worst is a small mistake. (Not a bad idea generally).
I can only assume that TH was assuming that you were talking about reducing "Liability" limits.
Actually, for a high net worth individual, "high limits of liability" are an excellent idea, and in fact an "umbrella policy" in addition is a damn good idea.
Your point is well-taken, self insure for the losses you can take care of, and insure yourself for a loss that would be life changing.
Again, I'm sure that TH must have mis-understood you. I agree with your reasoning, and I was in that business for a number of years.
Also as Martha pointed out, Uninsured Motorists
on an auto policy, allows you an opportunity to collect from an irresponsible driver in the event that someone looses an arm or a leg, etc.
Anyway, you are on the right track re: insurance.


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Re: Uninsured Motorist on Auto Ins.
Old 06-06-2005, 01:12 PM   #15
 
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Re: Uninsured Motorist on Auto Ins.

Living in gritty high-claim part of the major city in a limited no-fault state will do it to you!

Last year I observed the the immediate whereafter of an "accident" between a VW Jetta and an MBTA (local transit) bus a couple of blocks from where I live.* The VW rear-ended the bus, causing no perceptible damage to the bus, and oh, dunno, maybe $1500 in bumper/fender damage to the Jetta.* The airbag didn't even inflate fer crissakes.* Anyhow, the bus doors opened and the casualties came streaming out, clutching their necks, looking every bit like a casualty march from the civil war.* Oh the wailing!* Actually, it was moms who were putting on the performance--the kids walked out and seemed to be having fun with all the excitement.* More than a dozen ambulances arrived before I walked away

Now could there have been a couple of legitimate injuries on the bus?* Maybe.* But I have about $4500 per year that says otherwise!

(To return to the topic, I feel fairly confident that buried deep within my policy is some form of uninsured motorist coverage.)

Quote:
Originally Posted by th
Tozz...ok i'll bite...why are you paying more for one toyota than I am for house, 2 cars and a huge umbrella liability policy?* By about a factor of two?
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Re: Uninsured Motorist on Auto Ins.
Old 06-06-2005, 01:48 PM   #16
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Re: Uninsured Motorist on Auto Ins.

Quote:
Originally Posted by tozz
(To return to the topic, I feel fairly confident that buried deep within my policy is some form of uninsured motorist coverage.)
At that cost, Jimmy Hoffa is probably buried deep within your policy.

(Sorry, I'm in lame joke mode lately...it will pass sooner or later.)
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Re: Uninsured Motorist on Auto Ins.
Old 06-06-2005, 01:56 PM   #17
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Re: Uninsured Motorist on Auto Ins.

Uninsured/Underinsured motorist insurance is vital. I had $250 K when I had a mc vs car accident. Other driver had $100,000 limit. I no longer have a very useful left arm and my insurance came in handy. I now carry 1/2 million. Still not too much. The number of underinsured/uninsured motorists out there is staggering. You have a serious accident with one and you'll be left holding the financial bag.
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Re: Uninsured Motorist on Auto Ins.
Old 06-06-2005, 07:15 PM   #18
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Re: Uninsured Motorist on Auto Ins.

I would not be without either of them. I should be talking to my ins agent re: increasing the amount of my ins. I was involved in a 4 car accident in the last year and all 4 cars had to be towed and I think that my car was the only 1 not totalled. I was sitting at a red light minding my own business.

My 16 1/2 year old is driving and seems to be a good driver, but at 16 you just don't have that much experience. I do not allow her to drive any of her friends yet.

Anyway, if you were the cause of a 4 vehicle wreck and there were expensive cars or SUVs involved, I worry that we would not have enough insurance.


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Re: Uninsured Motorist on Auto Ins.
Old 06-06-2005, 07:19 PM   #19
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Re: Uninsured Motorist on Auto Ins.

Quote:
Originally Posted by ex-Jarhead
Nords:* Dropping your collision and comp. on a car at worst is a small mistake.* (Not a bad idea generally).
I can only assume that TH was assuming that you were talking about reducing "Liability" limits.
Actually, for a high net worth individual, "high limits of liability" are an excellent idea, and in fact an "umbrella policy" in addition is a damn good idea.
Sorry, guys, I missed John's comment. Didn't mean to sound so prickly.

It always worries me that people buy liability insurance for their net worth instead of their gross worth. I don't think the court is going to take your mortgages & other debt into consideration when awarding damages...
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Re: Uninsured Motorist on Auto Ins.
Old 06-06-2005, 08:01 PM   #20
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Re: Uninsured Motorist on Auto Ins.

Quote:
Originally Posted by BigMoneyJim
At that cost, Jimmy Hoffa is probably buried deep within your policy.

(Sorry, I'm in lame joke mode lately...it will pass sooner or later.)
Yes! The requisite annual jimmy hoffa joke!!!
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