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Old 10-25-2020, 04:32 AM   #41
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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.
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Old 10-25-2020, 06:22 AM   #42
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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.
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Old 10-25-2020, 06:28 AM   #43
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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.
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Old 10-25-2020, 07:37 AM   #44
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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?
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Old 10-25-2020, 08:25 AM   #45
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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.
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Old 10-25-2020, 08:29 AM   #46
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<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.

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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.
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Old 10-25-2020, 10:25 AM   #47
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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.
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Old 10-25-2020, 10:30 AM   #48
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Yep, FLA has many uninsured motorists and thus very high premiums for this type of coverage.
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Old 10-25-2020, 10:34 AM   #49
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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 ďletís not involve insurance companiesĒ and ďthatís not too bad of a dentĒ. If I wasnít sitting in the car Iím 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.
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Old 10-25-2020, 11:54 AM   #50
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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.
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Old 10-25-2020, 02:16 PM   #51
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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.
DH and I live in the Orlando area and carry uninsured motorist, bodily injury, non-stacked with limits of 100k/300k. That is less than the 300k/500k liability limits I must carry due to my umbrella policy. My umbrella policy does offer uninsured coverage.

The cost is $314 annually for two vehicles or 17.3% of our total premium (full coverage, low mileage). I purchase it to cover any required medical treatment not covered by DH's Medicare+Supplement or to provide my treatment of choice since I get my health care from the VA.

For awhile, I had higher medical payments coverage ($0 now) and no uninsured motorist coverage but, for some reason that I don't recall, I switched over to uninsured motorist coverage.
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Old 10-25-2020, 08:42 PM   #52
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Never had UI/UM coverage in my lifetime.
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Old 10-26-2020, 04:49 AM   #53
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Never had UI/UM coverage in my lifetime.

I never have had it either. But in order to reduce the cost of my umbrella, I'm going to get it. Also, I have just found that 26% of Florida drivers are uninsured. It comes down to, now that I have a nest egg, I want it protected.
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Old 10-26-2020, 05:52 AM   #54
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Here in Michigan insurance changed to drop the requirement for everyone to carry unlimited bodily injury coverage. After investigating we kept the unlimited coverage. The same logic we will use to buy a Medicare supplemental plan G.

Pay up to cover the possibility of a major catastrophe and skip the little stuff like extended warrantys, trip insurance for domestic travel, life insurance at our age etc.
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Old 10-26-2020, 07:13 AM   #55
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I think Florida has a silly low minimum requirement for liability.
From the Florida regs.

Must "have a minimum of $10,000 in PIP AND a minimum of $10,000 in PDL"
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Old 10-26-2020, 07:28 AM   #56
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I am a bit surprised at this discussion. Unless you have been thru a serious accident with catastrophic injuries that results in long term disabilities or pain/suffering, you may not realize the importance of these coverages, especially if you live in a state where the other party may have no insurance or is under insured.
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Old 10-26-2020, 08:06 AM   #57
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I am a bit surprised at this discussion. Unless you have been thru a serious accident with catastrophic injuries that results in long term disabilities or pain/suffering, you may not realize the importance of these coverages, especially if you live in a state where the other party may have no insurance or is under insured.
I agree- if you have decent health insurance I suppose they get stuck with the medical bills if the at-fault driver is uninsured or under-insured, but that doesn't pay for home help (cleaning, cooking) if you need it, wage loss or other damages not covered by a standard medical insurance policy.
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Old 10-26-2020, 08:57 AM   #58
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I agree- if you have decent health insurance I suppose they get stuck with the medical bills if the at-fault driver is uninsured or under-insured, but that doesn't pay for home help (cleaning, cooking) if you need it, wage loss or other damages not covered by a standard medical insurance policy.
True, but do I need $500k coverage for home help, et al... wage loss doesn't apply if retired... or would $100k be enough?
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Old 10-26-2020, 09:07 AM   #59
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True, but do I need $500k coverage for home help, et al... wage loss doesn't apply if retired... or would $100k be enough?
When my son was almost killed by a 15 yo fleeing the police in a high speed chase who T-boned him, I had $300K and immediately after that bumped my coverage to $500K. The kid had taken his parents car and they were significantly under-insured and had no assets. This is a no-brainer for me.
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Old 10-26-2020, 10:58 AM   #60
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When my son was almost killed by a 15 yo fleeing the police in a high speed chase who T-boned him, I had $300K and immediately after that bumped my coverage to $500K. The kid had taken his parents car and they were significantly under-insured and had no assets. This is a no-brainer for me.


I agree! I was in the insurance industry for many years. One claim that stuck with me. Insuredís daughter and two of her girlfriends (all 17) were out late playing bingo. Stopped at a red light on way home, uninsured drunk driver plowed into the back of her car, none of the girls survived. The $500,000 uninsured limit under the policy was paid out within 30 days. Very important coverage, regardless of any other possible insurance that may apply.
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