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

[Buckeye]

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.

 

[F.I.R.E User]

Never had UI/UM coverage in my lifetime.

 

[Time2]

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.

 

[foxfirev5]

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.

 

[Time2]

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"

 

[eytonxav]

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.

 

[athena53]

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.

 

[pb4uski]

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?

 

[eytonxav]

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.

 

[Time2re]

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. Insured’s 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.

 

[MrsHaloFIRE]

Whoa that's high for 1m

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.

 

[Time2]

Whoa that's high for 1m

I thought so to, I have a friend and his cost was $274 a year. I'll be checking to see why it so high. I have vacant lot and 1/2 of my deceased mothers home that my sister lives in and, 3 cars. I don't know if any of those bump the rate.

 

[wanaberetiree]

I was talking with a friend this morning comparing notes as we are both shopping for car insurance. He said that his agent asked him whether they were on Medicare and he responded yes, and the agent said that many of his customers on Medicare were dropping UI coverage. It sort of makes sense, though there would be some risks that one might want coverage for. I found this: https://www.weshopinsurance.com/new...you for injuries,driver (not enough insurance).



I'm thinking of at least reducing my coverage from $500k to $100k rather than eliminating it entirely. What do y'all think? Have any of you dropped UI because you have Medicare?

UI is not only for someone with no insurance but for under-insured as well.

Consider an accident with your friends in your car and somebody hit you and had only 10K UI, but your passengers needed medical help. Your friends will have to go after you and your insurance. If you had good UI that's what it's for.

In my opinion, UI is a must and has to me a maximum (which is your policy limit) and cost almost nothing !

 

[street]

OP that decision of lower or not having it, is what you feel comfortable with. Asking if XX# of $ is sufficient is your choice.

I haven't made a claim on home owners insurance in about 40 years. Should I drop it, should try to save 100$ a year to have less coverage Decisions decision!!!! LOL

 

[Splash]

Cost for 6 months per vehicle:

Uninsured Motorists Bodily Injury $150,000/300,000 = $11.80
Underinsured Motorists Bodily Injury $150,000/300,000 = $11.10

Seems reasonable. I'm keeping it.

 

[Koolau]

It seems to me that this discussion might best be had with a (trusted?) insurance agent. Knowing exactly what/when is covered, how much, scenario discussion, local 'conditions' (% not covered/under-covered), how much for how much (my guess: difference in cost/coverage goes down as coverage goes up (IOW 500K may not be dramatically more expensive than 100K).

I'm really spitballing here, but as I think about this for my personal situation, a 15 minute sit-down with agent seems in order - well, in the age of Covid, maybe on the phone. Once again, those who know this subject inside and out, probably need not consider my suggestion. YMMV

 

[Stormy Kromer]

I was on a professional rescue squad for 23 years responding to auto accidents and was also involved in the auto insurance industry. I spent more than a few days in court as a witness testifying in auto accident law suits.


Please everyone trust me on this, there are much better ways to save money in your annual budget than to reduce your Uninsured and Underinsured Motorist coverages(there is a difference, but you need them both) I'm talking about Bodily Injury, not Property Damage.


I could write a few paragraphs on this, but to keep it short. Trust me, don't do it. And, I hope you never need to use it.

 

[pb4uski]

Cost for 6 months per vehicle:

Uninsured Motorists Bodily Injury $150,000/300,000 = $11.80
Underinsured Motorists Bodily Injury $150,000/300,000 = $11.10

Seems reasonable. I'm keeping it.

If I could get it at those rates I would keep it too and would have never started this thread.

 

[Chuckanut]

My Camry was totaled by an under insured driver. My insurance paid me and went after the other guy. Without the coverage I would have had problems collecting.

 

[scrabbler1]

Also worth pointing out is that if you have No-Fault (PIP), that coverage will pay for some of the same economic damages (medical, some non-medical) as UM/UIMBI, the same way Collision will pay for damages the way UM/UIMPD will. If you don't have Collision, I would suggest buying UMPD if that coverage is available in your state, s you have some cheap Physical Damage coverage on your car. (In some states, UMPD is only available to non-Collision buyers.)

 

[meleana]

Some states require minimum coverage, like NY. Other states like NH don’t require car insurance at all- except liability.

I would take out the minimum at the very least just in case.

And-,What does being on Medicare have to do with it?

 

[MrsHaloFIRE]

Search ER for "umbrella" Not too long ago we crowdsourced what we pay for comparison

I thought so to, I have a friend and his cost was $274 a year. I'll be checking to see why it so high. I have vacant lot and 1/2 of my deceased mothers home that my sister lives in and, 3 cars. I don't know if any of those bump the rate.

 

[Buckeye]

Cost for 6 months per vehicle:

Uninsured Motorists Bodily Injury $150,000/300,000 = $11.80
Underinsured Motorists Bodily Injury $150,000/300,000 = $11.10

Seems reasonable. I'm keeping it.

That is crazy cheap! About $2 per month?

Or $11.80 per month for six months equal to about $70?

 

[dixter]

[MOD EDIT]

you think that old honda with the paper tags , spewing out the smoke as it goes past you at 90 mph has insurance when he runs into you

Last year I had a friend that took an older woman in the neighborhood out for a ride on his scooter.. shortly after they left they stopped at a stop light waiting for it to turn green when they got rear ended by another woman in a car texting, she claims she didn't even see them sitting there at the red light... the scooter was a total, the woman ended up with a broken hip that has now taken over a year to heal... she most likely will never be the same... so only one person had insurance, my friend with the scooter... he is very lucky the rider could have sued him and the woman texting... I'd say in this case insurance was worth the money spent...

This year my insurance company gave out discounts due to the virus... so I'm paying less for the exact coverage anyway...

why be a penny pincher tight wad...

 

[Time2]

I just ask Amica about an Umbrella policy.
Minimum on auto 250K/500k. Covers my 3 cars, one vacant lot and home.
The policy does not cover UIM.
Price $318, I can add UIM.
With that the total cost is $876.
If you have an Amica Umbrella policy and think you have UIM, you better make sure.
It is not standard.
PS, My son read this and said I should use asked as the 3rd word in my 1st sentence, what do you say?