Uninsured Motorist on Auto Ins.

[Arin38]

I'm looking at my car insurance for the first time in a few years - State Farm keeps going up and up and up. Decided to ditch collision and comp. on my 1994 Toyota which will save me a few and seems to make sense. Liberty Mutual has some great rates so it looks like I'll switch and save hundreds a year on the 2 cars.

I've never had uninsured motorist coverage. I've always gone under the assumption that any medical issues that I might face from some uninsured driver hitting me and causing injuries would be bourne by my health insurance (not yet at catastrophic coverage as we are still working and have good plans). A friend commented yesterday that they would not cover it. Not sure about that and plan to investigate. Hmmmmm.

Your thoughts:

1. Uninsured motorist coverage - yea or nay

1a. Uninsured motorist coverage if you have only catastrphic health coverage (let's say $5k deduct) - yea or nay

 

[Martha]

Absolutely vote for uninsured and underinsured coverage. Insurance doesn't just provide for your medical costs. What if you are unable to work and have lost wages for a period of time? What if you never can work again? Your health insurance won't cover that.

I view this coverage as a necessity.

 

[BigMoneyJim]

I dropped Personal Injury Protection once expecting my health insurance to cover, but I didn't save much at all. A few bucks. I have it back now. Besides, many health plans have $1mil lifetime limits, and having health bills from a wreck could add up to a few tens of thousands or more fast and might require ongoing costs like back pain medicine or therapy. I hadn't thought about lost wages.

You probably already know to buy more than the required minimum. $25k doesn't cover a lot of medium-ranged new cars, and there are a lot of Hummers and Lexuses out there. Come to think of it I might need to bump up from $50k property coverage.

 

[Mr._johngalt]

I'm looking at my car insurance for the first time in a few years - State Farm keeps going up and up and up. Decided to ditch collision and comp. on my 1994 Toyota which will save me a few and seems to make sense. Liberty Mutual has some great rates so it looks like I'll switch and save hundreds a year on the 2 cars.

I've never had uninsured motorist coverage. I've always gone under the assumption that any medical issues that I might face from some uninsured driver hitting me and causing injuries would be bourne by my health insurance (not yet at catastrophic coverage as we are still working and have good plans). A friend commented yesterday that they would not cover it. Not sure about that and plan to investigate.  Hmmmmm.

Your thoughts:

1. Uninsured motorist coverage - yea or nay

1a. Uninsured motorist coverage if you have only catastrphic health coverage (let's say $5k deduct) - yea or nay

I have uninsured motorist and comp. and towing (high deductible on the comp). Thinking about rolling the dice and switching to the minimums
required by Illinois to be legal. Risky, but so is living.

JG

 

[BigMoneyJim]

Thinking about rolling the dice and switching to the minimums
required by Illinois to be legal. Risky, but so is living.

Been a few years since I priced, but I don't recall the extra coverage adding much at all. In fact I went for $500 deductible over $1000 just because the difference in premiums was so tiny. I don't remember what the extra coverage cost, but I recall being surprised at how little it cost. That first $25k is what you pay for more than anything else.

 

[tozz]

This has absolutely nothing to do with the thread, but I post this periodically for 1) pity, and 2) to make everyone else think that, maybe, they have a great deal on auto insurance:

My yearly insurance for one car (modest Toyota) is $4500.

 

[BigMoneyJim]

My yearly insurance for one car (modest Toyota) is $4500.

I pay $60/month, but that includes renter's insurance of around $15, so my yearly full coverage, above-minimum car premiums are under $600/year. And that's State Farm. What are you people doing?

It does help to live in the county next to the big city instead of the county the big city is in, but that's not the difference between $600 and $4500.

 

[cute fuzzy bunny]

Tozz...ok i'll bite...why are you paying more for one toyota than I am for house, 2 cars and a huge umbrella liability policy? By about a factor of two?

 

[Nords]

... and 2) to make everyone else think that, maybe, they have a great deal on auto insurance:

My yearly insurance for one car (modest Toyota) is $4500.

We think you should start checking into public transportation. Or hire a limo!

 

[Nords]

Decided to ditch collision and comp. on my 1994 Toyota which will save me a few and seems to make sense. Liberty Mutual has some great rates so it looks like I'll switch and save hundreds a year on the 2 cars.

I've never had uninsured motorist coverage. I've always gone under the assumption that any medical issues that I might face from some uninsured driver hitting me and causing injuries would be bourne by my health insurance (not yet at catastrophic coverage as we are still working and have good plans). A friend commented yesterday that they would not cover it. Not sure about that and plan to investigate.  Hmmmmm.

Your thoughts:

1. Uninsured motorist coverage - yea or nay

1a. Uninsured motorist coverage if you have only catastrphic health coverage (let's say $5k deduct) - yea or nay

Ditching the collision & comp is a great idea.

Switching insurance companies might ratchet down the levels of support & service. If you're hearing great things about the company then it's probably fine. As a Berkshire shareholder I'm required to ask if you've obtained your GEICO quote...

Every medical plan should have some sort of ombudsman or patient advocate who can tell you the rules for auto accidents (as well as showing you the references). But disability & lost income are generally not covered by auto or medical policies. Spouse and I are covered medically, and so is our kid up until her low 20s, but we keep UM/UIM in case some derelict puts her into a lifetime of disability and we need the funding to support her care. When she's on her own we'll probably drop the UM/UIM.

It's estimated that as many as 25% of Hawaii's drivers do not have insurance. (Another reason to pay at the pump?)

 

[cute fuzzy bunny]

Try the uninsured rate in CA...

Having the UM coverage here is practically essential.

Dropping your coverage to bare minimum to save a hundred or two a year when you have six figures in assets and several pieces of property is the second dumbest thing I've heard of in my life.

 

[Nords]

Dropping your coverage to bare minimum to save a hundred or two a year when you have six figures in assets and several pieces of property is the second dumbest thing I've heard of in my life.

C'mon, I'm a nuke. Self-insurance is a decision that depends on analyzing the dollars, and we determined that investing the premium savings would pay for replacement vehicles. Of course this math only works for used cars and not new SUVs. And you still have to sleep at night.

Besides, it really hurts to shell out money to insure an asset whose depreciated value reached zero in the last millenium. Not that it takes long for a Taurus.

And it's great practice. It's being able to analyze those "hundred or two a year" situations that enables people to get to the "six figures & several pieces of property"...

OK, I give up. What's the dumbest?!?

 

[cute fuzzy bunny]

Actually it was the part about dropping the liability to the bare minimum, which John has brought up before. He was only held up by his agent refusing to do it, which makes him a darn good agent.

OK, I give up. What's the dumbest?!?

There isnt a dumber one. I just wanted to slot this into #2 in case something dumber came along so I didnt have to come back and readjust this from #1 to #2. I'm that lazy.

 

[Jarhead*]

Ditching the collision & comp is a great idea.

Switching insurance companies might ratchet down the levels of support & service.  If you're hearing great things about the company then it's probably fine.  As a Berkshire shareholder I'm required to ask if you've obtained your GEICO quote...

Every medical plan should have some sort of ombudsman or patient advocate who can tell you the rules for auto accidents (as well as showing you the references).  But disability & lost income are generally not covered by auto or medical policies.  Spouse and I are covered medically, and so is our kid up until her low 20s, but we keep UM/UIM in case some derelict puts her into a lifetime of disability and we need the funding to support her care.  When she's on her own we'll probably drop the UM/UIM. 

It's estimated that as many as 25% of Hawaii's drivers do not have insurance.  (Another reason to pay at the pump?)

Nords: Dropping your collision and comp. on a car at worst is a small mistake. (Not a bad idea generally).
I can only assume that TH was assuming that you were talking about reducing "Liability" limits.
Actually, for a high net worth individual, "high limits of liability" are an excellent idea, and in fact an "umbrella policy" in addition is a damn good idea.
Your point is well-taken, self insure for the losses you can take care of, and insure yourself for a loss that would be life changing.
Again, I'm sure that TH must have mis-understood you. I agree with your reasoning, and I was in that business for a number of years.
Also as Martha pointed out, Uninsured Motorists
on an auto policy, allows you an opportunity to collect from an irresponsible driver in the event that someone looses an arm or a leg, etc.
Anyway, you are on the right track re: insurance.

 

[tozz]

Living in gritty high-claim part of the major city in a limited no-fault state will do it to you!

Last year I observed the the immediate whereafter of an "accident" between a VW Jetta and an MBTA (local transit) bus a couple of blocks from where I live.  The VW rear-ended the bus, causing no perceptible damage to the bus, and oh, dunno, maybe $1500 in bumper/fender damage to the Jetta.  The airbag didn't even inflate fer crissakes.  Anyhow, the bus doors opened and the casualties came streaming out, clutching their necks, looking every bit like a casualty march from the civil war.  Oh the wailing!  Actually, it was moms who were putting on the performance--the kids walked out and seemed to be having fun with all the excitement.  More than a dozen ambulances arrived before I walked away

Now could there have been a couple of legitimate injuries on the bus?  Maybe.  But I have about $4500 per year that says otherwise!

(To return to the topic, I feel fairly confident that buried deep within my policy is some form of uninsured motorist coverage.)

Tozz...ok i'll bite...why are you paying more for one toyota than I am for house, 2 cars and a huge umbrella liability policy?  By about a factor of two?

 

[BigMoneyJim]

(To return to the topic, I feel fairly confident that buried deep within my policy is some form of uninsured motorist coverage.)

At that cost, Jimmy Hoffa is probably buried deep within your policy.

(Sorry, I'm in lame joke mode lately...it will pass sooner or later.)

 

[Rich]

Uninsured/Underinsured motorist insurance is vital. I had $250 K when I had a mc vs car accident. Other driver had $100,000 limit. I no longer have a very useful left arm and my insurance came in handy. I now carry 1/2 million. Still not too much. The number of underinsured/uninsured motorists out there is staggering. You have a serious accident with one and you'll be left holding the financial bag.

 

[Dreamer]

I would not be without either of them. I should be talking to my ins agent re: increasing the amount of my ins. I was involved in a 4 car accident in the last year and all 4 cars had to be towed and I think that my car was the only 1 not totalled. I was sitting at a red light minding my own business.

My 16 1/2 year old is driving and seems to be a good driver, but at 16 you just don't have that much experience. I do not allow her to drive any of her friends yet.

Anyway, if you were the cause of a 4 vehicle wreck and there were expensive cars or SUVs involved, I worry that we would not have enough insurance.


Dreamer

 

[Nords]

Nords:  Dropping your collision and comp. on a car at worst is a small mistake.  (Not a bad idea generally).
I can only assume that TH was assuming that you were talking about reducing "Liability" limits.
Actually, for a high net worth individual, "high limits of liability" are an excellent idea, and in fact an "umbrella policy" in addition is a damn good idea.

Sorry, guys, I missed John's comment. Didn't mean to sound so prickly.

It always worries me that people buy liability insurance for their net worth instead of their gross worth. I don't think the court is going to take your mortgages & other debt into consideration when awarding damages...

 

[cute fuzzy bunny]

At that cost, Jimmy Hoffa is probably buried deep within your policy.

(Sorry, I'm in lame joke mode lately...it will pass sooner or later.)

Yes! The requisite annual jimmy hoffa joke!!!

 

[Tadpole]

Arin38
I've never had uninsured motorist coverage. I've always gone under the assumption that any medical issues that I might face from some uninsured driver hitting me and causing injuries would be bourne by my health insurance.

Car accidents can cause a lot of damage to your body, even with airbags. I was crippled for life by an underinsured driver. I have one of the best medical insurance policies available and my husband has insurance which covers some things more than my policy does (rehab). Nevertheless, after the accident we raised our uninsured/underinsured to $300K. It had been $50K. However, State Farm or Maryland requires that this amount not exceed the coverage on the other driver should the fault be ours.

The driver was a 19 year old boy who, after 48 hours without sleep, fell asleep on the front bumper of my car. He was unharmed; I was severely injured (wish I had been asleep). He had a cheep policy from MD called "high-risk driver insurance". You get the maximum of the two coverages (his or yours). Even when your medical insurance covers most of the costs, if your health insurance has a subrogation clause, they get first dibs on the car insurance money. So, for expensive injuries, you can get stuck with a lot of expense if there isn't enough for both you and your medical insurer. The increase in the underinsured driver insurance was quite cheap and we decided that it was worth it.

So I advise talking to your medical insurer about subrogation. I am sure that they all cover emergencies but you could ask them anyway. Also examine in-patient and out-patient rehab coverage and coverage in a nursing home/care facility/hospice just for good measure.

 

[Arin38]

Thanks for all of the comments and advice. You have given me something to think about - we've both got LTD coverage at work but you've got me leaning towards spending the add'l $$$ on uninsured. Also going to price out higher coverage (especially while working) but will ditch the coll/comp on the older car.

Given the high rate at State Farm right now, I may be able to bump up coverage and pay somewhat less.