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I am helping my brother with his auto insurance
Old 05-13-2020, 07:02 PM   #1
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I am helping my brother with his auto insurance

He has a net worth of 1 million. He asked me is there anything on his policy he can reduce? How about the uninsured/underinsured does it need to be that high? Here is his policy.

Umbrella 1 million


Bodily Injury Liability
$250,000 per person/$500,000 per accident

Property Damage Liability
$50,000 per accident

Uninsured Motorist Bodily Injury
$250,000 per person/$500,000 per accident

Underinsured Motorist Bodily Injury
$250,000 per person/$500,000 per accident

Medical Payments
$10,000 per accident
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Old 05-13-2020, 07:36 PM   #2
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Those levels seem reasonable. Has he thought about letting other companies provide quotes for similar coverage. We used to do that every three years. One time it dropped our cost by 25 %.
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Old 05-13-2020, 08:11 PM   #3
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Does he have comprehensive & collision insurance?

I was advised that if I had collision, comprehensive and my own health insurance, I could skip the Uninsured/underinsured insurance. Whether you can do that or not depends on your state. In Colorado, by default, you get that insurance & have to opt out. Obviously, you need to be aware of your deductibles & maximum out-of-pocket healthcare expenses. Dropping the uninsured motorist insurance is a risk.
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Old 05-13-2020, 08:19 PM   #4
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Does he have comprehensive & collision insurance?

I was advised that if I had collision, comprehensive and my own health insurance, I could skip the Uninsured/underinsured insurance. Whether you can do that or not depends on your state. In Colorado, by default, you get that insurance & have to opt out. Obviously, you need to be aware of your deductibles & maximum out-of-pocket healthcare expenses. Dropping the uninsured motorist insurance is a risk.
He does not have comprehensive & collision insurance (old car) He does have health insurance.
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Old 05-13-2020, 11:09 PM   #5
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What minimum limits are required by his umbrella insurance?

Those may explain the amounts he currently has, which to me are reasonable.
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Old 05-13-2020, 11:20 PM   #6
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I use a local insurance broker who gets me the best price. Right now I'm with Safeco for everything; home, cars, motorcyces, RV's, umbrella, etc. Because one carrier covers both auto and home, I get a significant discount. Why do all the calling if a broker can get a better price?
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Old 05-14-2020, 05:27 AM   #7
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These are the only things he can change with the Umbrella. With health insurance are these three needed?

Uninsured Motorist Bodily Injury
$250,000 per person/$500,000 per accident

Underinsured Motorist Bodily Injury
$250,000 per person/$500,000 per accident

Medical Payments
$10,000 per accident
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Old 05-14-2020, 05:32 AM   #8
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I use a local insurance broker who gets me the best price. Right now I'm with Safeco for everything; home, cars, motorcyces, RV's, umbrella, etc. Because one carrier covers both auto and home, I get a significant discount. Why do all the calling if a broker can get a better price?
Same here.
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Old 05-14-2020, 07:08 AM   #9
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I would work on the competition angle before lowering or dropping coverage. Price shopping the same coverage will have just as good a chance of lowering premiums as dropping those coverages.
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Old 05-14-2020, 07:12 AM   #10
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I think his property damage is on the low side when some cars cost well over 50K. Not to mention it is not that hard to wind up in a multi-car accident.
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Old 05-14-2020, 08:06 AM   #11
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I think his property damage is on the low side when some cars cost well over 50K. Not to mention it is not that hard to wind up in a multi-car accident.
The Umbrella will kick in after 50k. He had to have 50k for the Umbrella.
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Old 05-14-2020, 08:15 AM   #12
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I had an idea to tell him to drop Medical Payments but his ACA deductible is 7500 so that might not be a wise move. Is Uninsured/Underinsured really needed?
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Old 05-14-2020, 01:29 PM   #13
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I had an idea to tell him to drop Medical Payments but his ACA deductible is 7500 so that might not be a wise move. Is Uninsured/Underinsured really needed?
Well that is up to you but I think so personally. Ask your agent what happens if someone with no insurance is at fault and you DON'T have it.

In my state med pay over 5k has to be paid back (or so I was told). But insurance is very state specific so what is going to work for me may not work for you.

Agree as stated above with the person that said price shopping is a generally a better bet than dropping coverage.
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Old 05-14-2020, 02:16 PM   #14
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OP - You didn't say how much would he save for these various items ?

As others have said, get quotes from other companies, remembering that companies often give discounts for bundles (home,auto,umbrella).

Did something change to make your relative suddenly need cheaper auto insurance ?
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Old 05-14-2020, 03:58 PM   #15
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As others have said, SGOTI is not the person to ask about this. Copy the "deck" (declaration) pages, which describe each coverage, for every insurance policy he has, including his home and his umbrella. Black out the premium amounts, and copy again - two or three sets of copies to be given to independent agents for shopping.

Then ask them your questions.
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Old 05-14-2020, 07:09 PM   #16
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Deductibles? I went to $1,000 several years ago but haven't checked to see how much a difference it makes lately. Having a couple relatively new cars has made my insurance bill not that nice lately... Maybe it's time to check that again.
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Old 05-14-2020, 07:23 PM   #17
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I had an idea to tell him to drop Medical Payments but his ACA deductible is 7500 so that might not be a wise move. Is Uninsured/Underinsured really needed?


Medical payments also covers other people in your vehicle. We keep ours at $50k, and sometimes wonder if thatís enough since so many people have high deductibles these days.
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Old 05-14-2020, 08:04 PM   #18
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Medical payments also covers other people in your vehicle. We keep ours at $50k, and sometimes wonder if thatís enough since so many people have high deductibles these days.
Is either 10k or 50k enough? Will standard health insurance cover an auto wreck injury? Anybody know?
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Old 05-16-2020, 11:31 PM   #19
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I just checked with my Bluecross/Blueshield health insurance, and found that they do cover my injuries if caused by auto accident, and standard deductibles apply. Since collision insurance will pay for my crashed car regardless of fault, I dropped UIM. Still trying to figure out if I want to keep Personal injury protection for riders in my car. I don't know anybody that doesn't have health insurance. Also, kind of an introvert, so seldom have passengers besides wife.
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Old 05-16-2020, 11:47 PM   #20
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I just checked with my Bluecross/Blueshield health insurance, and found that they do cover my injuries if caused by auto accident, and standard deductibles apply. Since collision insurance will pay for my crashed car regardless of fault, I dropped UIM. Still trying to figure out if I want to keep Personal injury protection for riders in my car. I don't know anybody that doesn't have health insurance. Also, kind of an introvert, so seldom have passengers besides wife.
I never understood Uninsured and Underinsured much because you are insuring the other guy.
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