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Old 09-28-2014, 01:11 PM   #21
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Back in the 1990s, I worked on several rate revisions for UMBI in response to state law changes. Using some publications from outside vendors, we saw a correlation between the ratio of UM/BI claims and the method(s) of enforcement of a state's mandatory insurance laws. With computer technology rising rapidly in the 1990s, we saw that there were 2 big factors which increased compliance of a state's mandatory insurance law: One was the state linking their DMV with the insurer's cancellation reports. The other was having cops ask for proof of insurance at any traffic stop, not just at accidents. This was ~20 years ago so I am not sure how true this is today.
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Old 09-28-2014, 06:17 PM   #22
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Back in the 1990s, I worked on several rate revisions for UMBI in response to state law changes. Using some publications from outside vendors, we saw a correlation between the ratio of UM/BI claims and the method(s) of enforcement of a state's mandatory insurance laws. With computer technology rising rapidly in the 1990s, we saw that there were 2 big factors which increased compliance of a state's mandatory insurance law: One was the state linking their DMV with the insurer's cancellation reports. The other was having cops ask for proof of insurance at any traffic stop, not just at accidents. This was ~20 years ago so I am not sure how true this is today.
Georgia has really cracked down on this. If your coverage lapses, your license gets suspended. I learned this in 1993 when I went in the service and let the insurance lapse on an old car I wasn't using. The state promptly suspended my licence!

As I understand it now, if you don't have insurance, there is a fine that is levied DAILY. I am not really sure of this, but I do know that through registration your insurance must be updated and all the vehicle's go through your account which happens to be your driver license number...so it's a real pain to not have insurance.

Also, I noticed many of you have really good rates on your UIM coverage...mine is pretty pricy, even higher than the liability coverage.

Sent from my mobile device so please excuse grammatical errors.
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Old 09-28-2014, 08:43 PM   #23
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Flyboy, I don't recall which type of UIM coverage exists in Georgia, but if you have the broadest type then it can get rather costly. The least broad coverage doesn't cost nearly as much. I can't see UIMBI being more expensive than BI Liability BUT.......because UIMBI is not class-rated (i.e. age/sex/marital status/driver record don't matter), most discounts you have applied to your BI Liability coverage won't be applied to your UIM coverage.

Yes, states have found new, creative ways to increase compliance with mandatory insurance laws. I remember when I bought a car for the second time in 1992, 6 years after I bought my first car. I had to provide the car dealer with a copy of a valid insurance card before they would release the car to me. In 1986 I did not have to do that.
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Old 09-29-2014, 06:37 AM   #24
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the Financial and Safety Responsibility Act protects you. It does this by:

Suspending the operating and registration privileges of a driver or owner who has not been able to show immediate financial responsibility following an accident; and

By requiring anyone whose driver's license has been suspended or revoked because of a conviction, unsatisfied judgment or violation of the OWI law to prove financial responsibility for any future damages or injuries that driver may cause.[/I]
Do you really think that people without a driver's license do not drive? I would guess less than 1 out of 10, without licences, do not drive. Al they do is fine you, and if you do not pay the fine, suspend your license (again).

I doubt than any figure for uninsured motorists that is less than 20% is accurate. My insurance agent said MN has a rate of 27% of people without insurance. In the recession or 2008, it was as high as 34%. The chart shows 10.8%

It is the law to carry uninsured motorist coverage here in MN. BUT, if you have nothing, I would say skip all insurance and get a crappy old car.
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Old 09-29-2014, 09:34 AM   #25
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Senator, the chart you linked to shows uninsured motorists estimates by state, including Minnesota which has an estimate of 10.8%. That makes far more sense to me than what your agent's best guess is. I mentioned the use of UM/BI claim frequencies which has been standard practice for estimating the % of uninsured motorists. In my career, we used our own claim frequencies and IRC data to develop our estimates.

You can see in the first IRC chart how the countrywide estimated dropped quickly throughout the 1990s as computer technology increased. The booming economy also contributed. The ~12-13% ratio which was a low point in the 1990s has also returned in recent years.
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Old 09-29-2014, 02:03 PM   #26
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As someone whose whole career was in the auto insurance business, I view Uninsured Motorist and Under-Insured Motorist as the most important coverages on my policy besides Bodily Injury Liability coverage.

Why most important? Because UM and UIM is coverage for injuries to me and my family, not to others. As noted by other posts there is a large % of Uninsured vehicles. And when you add the equally high or higher % of vehicles covered only to the low state minimum coverage there's a high probability of the other party not being adequately insured to cover serious injuries they may cause. Yes, after the accident I could sue if they didn't have adequate coverage, but its doubtful I'd recover much, so I buy a high limit for UM/UIM equal to my Umbrella cov limit.
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Old 09-29-2014, 04:29 PM   #27
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My experience in police work was that if 10% of the drivers in your state are uninsured, they cause 30% of the accidents.

I do have a fair amount of un/underinsured coverage.
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Old 09-29-2014, 09:38 PM   #28
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That makes far more sense to me than what your agent's best guess is.
It was a link to the chart someone else posted above.

It wasn't the agent's best guess. It was American Families statistics. Do you really think most people on public assistance have auto insurance?

Do you think people with multiple DWIs have auto insurance? With the background checks I see, there are a bunch of people without licenses, or insurance.

He also said a great trick people with large families do is this. The best driver has all the cars registered to them. They are the only driver, until there is an accident. Then, the new person was only borrowing the car. Of course their rates skyrocket, but then they go to a different company.

Or, they have a decent car with just the minimal coverage. Once it gets into an accident, they tow it home and take out full coverage and make a claim.
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Old 10-01-2014, 12:15 AM   #29
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Personal note - someone hit my parked car (across the street from my house) over the weekend. This is considered a hit and run in my state (Texas). Because of my uninsured/underinsured collision insurance, my deductible is only $250 instead of $500 and all expenses incurred for my rental car are paid. In all honesty I didn't realize what this insurance does until I had to use it.


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Old 10-01-2014, 08:46 AM   #30
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I would probably get UM coverage to protect myself from the crowd of uninsured sc*mb*gs out there, if it were priced lower, but in my state it would double my premium ! I can't believe UM coverage is so cheap in other states. ($13 a year in a previous post !! )
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