OT - Why buy uninsured motorist coverage?

[Robin-535im]

Any insurance company people here today? I've got a question for you:

I have liability, comprehensive and collision on all my vehicles, yet the insurance company still wants me to have uninsured / underinsured coverage. Aren't I already covered no matter what? If someone hits me and they don't have insurance, my comprehensive will cover it, so if I get U/U coverage too I'll be paying twice for the same basic thing.

The only difference I see is that my rates might rise if I file a comprehensive claim, whereas they might not if I file an uninsured driver claim. But then again, I can use the money I save from not getting U/U coverage to cover the increase...

Anyway - wifey was pestering me about why I always decline the U/U coverage and I figured someone here might know the real scoop.

TIA,

Robin

[bahnstormer]

yeah your logic sounds right
i have only liability so i'm pissing them
off cuz they aren't getting as much $$ from me
as from you =]

[632 Regal]

Bahn, mann you should at least have comprehensive for the few bucks a month!

[crashnburn80]

[QUOTE= Aren't I already covered no matter what? If someone hits me and they don't have insurance, my comprehensive will cover it, so if I get U/U coverage too I'll be paying twice for the same basic thing.
[/QUOTE]

I could be wrong but I thought coprehensive will cover the loss or damages of your car if its your fault, where as liability will not cover loss or damages to your car. If its totally the other guys fault, I don't think comrehensive will cover your car. With uninsured insurance, if someone w/o insurance hits you, your insurance company will pay for the reapirs and will sue that person for damages. Otherwise you are left to pay for the repairs out of your pocket and you have to sue the person for damages on your own. I have comprehensive and uninsured motorist insurance.

On a related note, my mothers Mercedes SLK got rearended by someone w/o insurance. It ended up costing a couple thousand to repair. The guy was totally broke driving a $300 car. Theres no way he was ever going to be able to pay for it, especially after receiving a ticket for $500 for not having insurance. But the insuance company fronted the money for the repairs and was going to sue him for damages.

[dave b]

The way I understand it to work:

Liability - Pays for the damages to someone eles's car and body when it's your fault

Collision - Pays for the damage to your car, regardless of who's at fault. If someone else doesn't have insurance and they hit you, then it's up to your insurance company to foot the bill; shouldn't be your issue at all what kind of coverage they have. You pay the deductible and tell your insurance company to come up with the money.

Comprehensive - pays for damage not caused by a collision - hail, vandalism, theft, broken windows.

Medical - Covers your medical costs. I decline this since I have medical coverage through work.


Uninsured/Underinsured - Covers the gap between what you are paying for and what the other guy has. You may have double coverage with collision, but it's usually not much.

Comprehensive claims do not cause your insurance to increase, but collision and liability claims will. However, with a good company, your rates will stay the same. For example, my wife sideswiped a truck, but as a long time customer, the ins company gave us a discount and the rates were nto affected.


The rates are also highly negotiable. Call them up if you have questions and tell them the car is in the garage for most of the time....

dave

[darron525]

The way I understand it to work:

Liability - Pays for the damages to someone eles's car and body when it's your fault

Collision - Pays for the damage to your car, regardless of who's at fault. If someone else doesn't have insurance and they hit you, then it's up to your insurance company to foot the bill; shouldn't be your issue at all what kind of coverage they have. You pay the deductible and tell your insurance company to come up with the money.

Comprehensive - pays for damage not caused by a collision - hail, vandalism, theft, broken windows.

Medical - Covers your medical costs. I decline this since I have medical coverage through work.


Uninsured/Underinsured - Covers the gap between what you are paying for and what the other guy has. You may have double coverage with collision, but it's usually not much.

Comprehensive claims do not cause your insurance to increase, but collision and liability claims will. However, with a good company, your rates will stay the same. For example, my wife sideswiped a truck, but as a long time customer, the ins company gave us a discount and the rates were nto affected.


The rates are also highly negotiable. Call them up if you have questions and tell them the car is in the garage for most of the time....

dave

Ok I asked this question a few months ago and this is what my agent told me.
uninsured covers the passenger in the vehicle. If you have an accident and your passneger is hurt and you do not have uninsured motorist ins then your ins will not cover his or her injury.
That is how it was explained to me.

Darron

[Beemr750]

Uninsured/Underinsured - Covers the gap between what you are paying for and what the other guy has. You may have double coverage with collision, but it's usually not much.


Now this is what some brokers like to believe you,I know thru very recent experience that this is a big rip-off in SOME states.

Anyway I have only liability with pp and HAD U/U.
In my case I live in Fla and had a collision which some useless scum caused(NO drivers lic.NO tag(borrowed from ex-wife car) and NO valid insurance).

First thing my agent informed me after reporting it,the U/U in Fla only covers medical expenses caused by the guilty party,BUT ONLY if you don't have NO health coverage at all.But if you have a job and NO health insurance you have to fight them for benefits.

But that's not what I was TOLD years ago when talked into buying it,now I'm paying $55 less a year and they reluctantly had to remove this option.My bad for not asking questions initially and not reading the lawyers jumbo jumbo thoroughly.It's just another legally rip-off by misinforming the public in most cases.

[Badkrma]

I have been an insurance agent in Nevada for the last 10 years. Dave B has it right. With Uninsured motorist/ Underinsured motorist coverage this is for bodily injury and (in some states) property damage coverage, when you are in a non-at-fault accident. In Nevada the state minimum limits of Liability that are required are $15K for bodility per person, $30K per accident, and $10K in property damage (again these are liability limits and work as Dave B wrote). The problem with this as you can see is that these limits are low (check your state minimum) and in some cases would not coverage the first day in a hospital if you had anything major go wrong. Along those same lines, if you are in a car with a friend or maybe your local taxi service, and they are in an accident and they do not have enough insurance to assist with the medical needs, the UM policy will extend over for the bodily injury. For the cost ofthe insurance, it is a really good piece of mind. I also feel this way about Medical Payment coverage. One of you said that you don't purchase it because you have Medical coverage through work, but do you know all of the limitations on your policy? Or even the total out of pocket that you will have to meet before your health insurance starts paying at 100%. Again, this is a good piece of mind for the cost. (example of this was that my brother was in an accident on an rural road. They used a Air Ambulance to get him to the hospital. Total bill $8,500. Limitation on his company insurance policy $4,500 for Air Ambulance. Medical Payment on his car $5,000. Guess what assisted to pay the difference........

Hope that this helped. Sorry it is so long, but remember insurance is only a financing company for claims. If you do not have a claim you will never need someone to finance you, but when or if you do, you want the right coverages that will assist you. Talk to your current agent, but make sure that they have had a few years int he business.

Stephen

[dave b]

I also recommend that you buy umbrella insurance. Mine covers me up to a couple of million bucks in damages. I hope I will never have to use it, and for $200 a year for the wife and me, it lets me sleep at night. I can't se myself causing more than a few million dollars in damage for most things that aren't criminal, and once it's criminal, I'd have other things to worry about.

Regarding medical - I have Kaiser, so once I pay my $10 to get in the door, everything else is covered. Of course, I may get shoddy health care and get lost in the crowds, but at least it's cheap!

[Robin-535im]

Thanks for the responses - makes more sense now.

[Astroboy]

I also recommend that you buy umbrella insurance. Mine covers me up to a couple of million bucks in damages. I hope I will never have to use it, and for $200 a year for the wife and me, it lets me sleep at night. I can't se myself causing more than a few million dollars in damage for most things that aren't criminal, and once it's criminal, I'd have other things to worry about.

Regarding medical - I have Kaiser, so once I pay my $10 to get in the door, everything else is covered. Of course, I may get shoddy health care and get lost in the crowds, but at least it's cheap!

I have an umbrella policy also and also recommend it when you have your life invested in your home and family.

Now going back to the main subject thread, my thoughts are that one (we all) should seriously take a look at your premium breakdown and pay attention to how much more one would be are paying every six months....when you really look at it, it isn't all that much to make sure that you and your family will be covered in the event of some tragic or even moderate accident. It is something to really take a minute to think about. Better safe than sorry and (regretting and chasing later on). There are many unisured drivers out there and also crazy drivers out there.... (no I am not an insurance agent :) )