Uninsured/Underinsured Motorist Coverage... yea or nea?

[CardsFan]

Just got my insurance bill today. UIM/UM $100/ year for 2 cars and drivers. 100/300 coverage. Just under 10% of total insurance bill.

I would not think about eliminating it, but 500k (per OP) may be on the high side of coverage.

 

[street]

^ It isn't a hard decision for me. A young person gets killed or two young people get killed in a car accident that 500 might not even be enough.

Any insurance you buy is a gamble. If I had nothing I would have as little insurance as I could get by on. The more you have the more I would be afraid to gamble.

 

[Sunset]

Just checked and I am paying 17.00 every 6 months for 250/500 on UM/UIM.

It is a money decision and I would not change to save 17 bucks in my case.

It may be you need to re-shop your rates if you are over paying for UM/UI

Not fair...
I also live in IL, and I pay twice that rate:
250/500/15 for $31 on an old car that has no collision. (22%)
250/500 for $35 on a 5 yr old vehicle with collision (11%)

I'm not sure why I have UIPD on the old car and not the newer one

May have to phone my agent. as I'd rather have it on the newer vehicle that is worth $$

 

[athena53]

I'm still not sure about how the interplay between UM/UIM and Medicare works and hope someone with expertise can answer this.

Let's say I have liability coverage of $500K per person/$1 million per accident and have bought UM and UIM at those limits as well. Someone with $25,000/$50,000 coverage injures me in an at-fault accident and my medical bills are $750,000. Medicare pays it all but then goes after the at-fault driver for the first $25,000. They can also get $475,000 from my UIM coverage. Medicare has no way to recover the remaining $250K, right? (Let's assume the at-fault driver is judgment-proof.)

If that's true, buying UM/UIM is more to protect Medicare than to protect me. I'll still buy it anyway.

 

[pb4uski]

^^^ I'm guessing that in the situation that you describe that Medicare might get $25k from the underinsured at-fault driver and either nothing or $500k from your UIM.... but if you only had $100k UM/UIM then at best they would only get $100k from your insurer.

But I'm not buying insurance to protect Medicare but it does raise an interesting issue.

I would buy UI/UIM to cover me for the potential costs in the OP. Is it possible that if I had the situation that athena outlines that I would have to share my UI/UIM with Medicare so there would be less money available to me for the items outlined in the OP?

 

[mystang52]

$160/a year. I'm too close to NYC and a few other metropolitan areas where exposure to uninsured motorists is significant enough that I'm keeping the coverage.

 

[Sunset]

Not fair...
I also live in IL, and I pay twice that rate:
250/500/15 for $31 on an old car that has no collision. (22%)
250/500 for $35 on a 5 yr old vehicle with collision (11%)

I'm not sure why I have UIPD on the old car and not the newer one

May have to phone my agent. as I'd rather have it on the newer vehicle that is worth $$

Numbers above are for 6 months coverage.

I checked my last year policy and see that the removal of collision coverage seems to have added on the UIPD coverage of $15,000 at a cost of $5

 

[VanWinkle]

Not fair...
I also live in IL, and I pay twice that rate:
250/500/15 for $31 on an old car that has no collision. (22%)
250/500 for $35 on a 5 yr old vehicle with collision (11%)

I'm not sure why I have UIPD on the old car and not the newer one

May have to phone my agent. as I'd rather have it on the newer vehicle that is worth $$

The newer vehicle has collision coverage so does not need UMPD which is for damage to your vehicle caused by an uninsured motorist. UMBI is for bodily injury caused by an uninsured or underinsured motorist. UMPD coverage
can be useful for an older vehicle without collision coverage, but not if the cost of the coverage is prohibitive.

I shop rates every year, so I hope to find the lowest rates. Service is not a priority for me as I am retired from Insurance claims, and know how to get paid.

 

[Sunset]

The newer vehicle has collision coverage so does not need UMPD which is for damage to your vehicle caused by an uninsured motorist. UMBI is for bodily injury caused by an uninsured or underinsured motorist. UMPD coverage
can be useful for an older vehicle without collision coverage, but not if the cost of the coverage is prohibitive.

I shop rates every year, so I hope to find the lowest rates. Service is not a priority for me as I am retired from Insurance claims, and know how to get paid.

Now I know, and feel the $5 cost is worth it, since we live in an area with lots of UI motorists, even if they would simply write off my car which is worth maybe $2,500

Thanks ...

 

[Walt34]

90 degrees to this discussion (what else is new for Ko'olau?): Not sure here in Paradise, but in my last state, insurance companies were required to contact the state or DMV or whatever whenever someone dropped their insurance coverage.

This only works of course if the now-uninsured person stops driving when the insurance stops, which I strongly believe is the exception and not the rule. In MD, where I worked as a police officer, the state only sent a letter to the recently uninsured person to return the license plates but if they failed to do so no further direct action was taken other than to "flag" the tags as being uninsured. This meant that they only popped up on the radar if a police officer happened to have reason to get a listing or check for stolen on the tags. From time to time I did come across one of those and we'd take the tags (later returned to MVA) and tow and impound the vehicle, and they'd get a ticket that (I think) was a "must appear in court" violation - no set fine. And brother, you'd dang well better have a good story! Chances were good you'd see the inside of a jail cell for at least a few days.

If I had nothing I would have as little insurance as I could get by on. The more you have the more I would be afraid to gamble.

+1

As one insurance agent put it "Insurance is only for those who have something to lose".

 

[MarieIG]

I haven't done auto since dinosaurs roamed the earth, and only NY, so take this with a grain of salt.

There is a lot on that list that Medicare won't pay. For example pain and suffering. Moreover, doesn't the insurance for the (medical) under the auto policy kick-in first, i.e. primary to Medicare? (If Medicare isn't paying the bill in the first place, they don't get paid back for it.)

Secondly, (and again, my knowledge is limited) say you are badly injured, and the party who causes the accident has a wopping 15k in BI limits or (State requirements differ), flees the scene or is uninsured.

Your attorney settles with the carrier for the tort feasor for their policy limits and then (again this is NY) submits a demand for arbitration for the policy limits of your Under Insured Policy. That may result in a settlement with your carrier; or it may go to Arbitration.

But - like life insurance - better if you never need it.

But - this is kinda like life insurance - better if you never need it.

Can Medicare get involved, yes, although typically their liens are much smaller than you might expect and are negotiable by your attorney. (Yes, you most likely would want an attorney to deal with this so you don't make any missteps which could either cost you access to your policy or fail to iron out any Medicare issues; such as whether or not a Medicare set aside is necessary.

 

[Koolau]

Just to keep everything in perspective: The old adage (recommendation, or whatever) regarding insurance is: Insure for what you can't afford to cover out of pocket. In reality, a lot of insurance is a "pay as you go" sort of deal - with the insurance company tacking on their prophet. This would NOT be true for liability. Most of us would struggle if we suddenly had to write a check for $100K or $250K to a pedestrian, dressed in black who walked out in front of us between corners - but won a suit against us!

More to the point would be roadside assistance. Cost me about $3/month IIRC. I could afford a tow any time I need it. So why would I do the pay-as-you-go roadside assistance? I think it's as simple as KNOWING if I need a tow, I don't have to worry about what it will cost. I whip out my insurance card and call the 800 number on the back. From then on, it's not my problem.

I've dropped collision on 2 of my 3 cars since they are at least 20 years old. One collision and they are junk (or I can drive them as-is!)

As far as u/um coverage: I think it probably makes sense to keep it if it isn't too expensive. From the discussion, I think many of us aren't even too certain what all it covers. I guess that should be my next discussion with insurance lady but YMMV.

 

[MrsHaloFIRE]

Based on thr amount of uninsured drivers in my city I would not consider dropping it as long as I live here

 

[Koolau]

Based on thr amount of uninsured drivers in my city I would not consider dropping it as long as I live here

I don't have a good feeling for how many uninsured we have here, BUT you not only have to be insured to get your yearly tags but also when you go for your State inspection. Newer cars are usually "synchronized" for these two blessed events, but if a car has sat on a used car lot for a month or more, the synchronization is lost - which means TWO chances for the State to insist that you be insured. I'm sure all states are different on how they deal with insurance so YMMV.

 

[MarieIG]

We were hit 2x by uninsureds in NYC. (No injuries, thank goodness.)

 

[audreyh1]

Insurance agent here. Some states require uninsured motorist coverage, so you may not have a choice about paying for it. This covers injuries to you and passengers if you’re in a car accident caused by:

• A driver who doesn’t carry any liability car insurance.
• A driver who doesn’t have enough liability insurance to cover your medical bills.
• A driver whose insurance company denies coverage or goes out of business.

Uninsured motorist coverage can pay for:

• Medical bills.
• Lost wages if you can’t w*rk because of the car accident.
• Pain and suffering compensation.
• Funeral expenses.

I strongly recommend the coverage for all of my clients. About 15% of drivers carry no insurance and a significant percentage carry state minimum limits. Medicare or health insurance will not cover long term nursing care, nor will it compensate for life changing injuries.

It covers other passengers in my vehicle as well as me and my property. We pay quite a bit for it added to our umbrella policy. TX is rife with uninsured/underinsured drivers. State minimums are low for affordability reasons.

 

[INTJ10]

Very strange. I talked to my FL agent, and it appears that uninsured motorist coverage is almost half of my total premium. I looked into dropping it from $1M/$1M to $100K/$100K, and it would decrease the cost by about 35%. Basically from $360/year/vehicle to $220/year/vehicle. That's significant but I'm not sure if it's worth the decrease in coverage. I'll have to think about it.



I'm assuming there's a major issue with uninsured motorists in FL, compared to what I'm seeing others here talking about.

In Florida, there are low insurance minimums so you basically are paying for insurance for someone who injures you but has little coverage.

 

[grasshopper]

Going to town for me means shopping within one mile of Mexico. I pay $95 for under/uninsured every 6 months. That said my car insurance is still very inexpensive. If I go into Mexico I just walk.

 

[jim584672]

I haven't done auto since dinosaurs roamed the earth, and only NY, so take this with a grain of salt.

There is a lot on that list that Medicare won't pay. For example pain and suffering. Moreover, doesn't the insurance for the (medical) under the auto policy kick-in first, i.e. primary to Medicare? (If Medicare isn't paying the bill in the first place, they don't get paid back for it.)

Secondly, (and again, my knowledge is limited) say you are badly injured, and the party who causes the accident has a wopping 15k in BI limits or (State requirements differ), flees the scene or is uninsured.

Your attorney settles with the carrier for the tort feasor for their policy limits and then (again this is NY) submits a demand for arbitration for the policy limits of your Under Insured Policy. That may result in a settlement with your carrier; or it may go to Arbitration.

But - like life insurance - better if you never need it.

But - this is kinda like life insurance - better if you never need it.

Can Medicare get involved, yes, although typically their liens are much smaller than you might expect and are negotiable by your attorney. (Yes, you most likely would want an attorney to deal with this so you don't make any missteps which could either cost you access to your policy or fail to iron out any Medicare issues; such as whether or not a Medicare set aside is necessary.

Wouldn't OOP Medicare costs be picked up by your Medigap policy?

 

[CRLLS]

It covers other passengers in my vehicle as well as me and my property. We pay quite a bit for it added to our umbrella policy. TX is rife with uninsured/underinsured drivers. State minimums are low for affordability reasons.

Back to the original question WRT dropping the coverage if you are on Medicare. UIM and UM coverage covers the passengers, which includes your children and grandkids while in your car. They don't have Medicare. I will keep that coverage, thank you.

In the above situation, I wonder if Umbrella insurance would cover the children's and grandkids' expenses even though it was found you were not at fault, i.e. legally liable. Another question, which is primary in insurance, the auto policy or Medicare? How are multiple people allocated to the limits? Could you choose to use Medicare for yourself, leaving the full limits of the auto policy for the kids and grandkids? Or is there some other method?

BTW, our costs are $40 per 6 months for 2 cars, both with collision coverage.

 

[athena53]

<snip>
In the above situation, I wonder if Umbrella insurance would cover the children's and grandkids' expenses even though it was found you were not at fault, i.e. legally liable. Another question, which is primary in insurance, the auto policy or Medicare? How are multiple people allocated to the limits? Could you choose to use Medicare for yourself, leaving the full limits of the auto policy for the kids and grandkids? Or is there some other method?

Ooh, full employment for lawyers! Auto coverage is primary but I'm guessing Medicare will tell you how much reimbursement they want before you and any passengers collect under the policy.

In Florida, there are low insurance minimums so you basically are paying for insurance for someone who injures you but has little coverage.

I know- it kinda sucks. I'm paying to protect myself from people who don't buy insurance (or enough insurance) but if I injure someone in an accident they've won the friggin' lottery since I have an Umbrella policy under high underlying limits.

When I was in consulting we had a prospective client that wanted to develop an auto insurance product that was pretty much aimed at people who intended to drop coverage. You paid in monthly installments, you got your insurance card after the first installment so you could get your tags or renew registration, then you stopped paying. We never did get their business and were just as glad.

 

[Time2]

At the moment I don't have UI/UIM coverage, I'm adding it tomorrow.
I recently applied for an Umbrella policy. It came back with stipulations regarding uninsured motorist. I could get those covered, but the additional premium was
91% of the cost of the original Umbrella.
So I'm going to get the UI/UIM coverage on my auto and see what else I can do to lower the cost of the umbrella. As it stands they want $559 for $1M of coverage.

 

[Dtail]

Yep, FLA has many uninsured motorists and thus very high premiums for this type of coverage.

 

[1242Vintage]

Only used my uninsured coverage once. Uninsured driver in a parking lot reversed all the way across the lot right into my legally parked car while I was sitting in it. I knew he was uninsured when he said “let’s not involve insurance companies” and “that’s not too bad of a dent”. If I wasn’t sitting in the car I’m pretty sure he would have driven away after caving in the rear quarter panel of my nearly new Subaru.

Two good things came out of this. I turned him into Dept of Motor vehicles and they put a hold on his license so he cannot renew again until he shows proof of insurance. And no deductible or hassle with the other driver to pay to get my car fixed. Insurance company handled all that.

 

[Sunset]

Only used my uninsured coverage once. ..

Two good things came out of this. I turned him into Dept of Motor vehicles and they put a hold on his license so he cannot renew again until he shows proof of insurance. And no deductible or hassle with the other driver to pay to get my car fixed. Insurance company handled all that.

Too bad it was not the law when UI motorists are caught/found, seizure and forfeiture of the vehicle is mandatory.
Otherwise, they just go driving the next day.