Business History Books » Business Consultant » Uninsured Motorist Ins: Why?
Uninsured Motorist Ins: Why?
Question:
>Who will pay for any passengers injured in your car? Ans. — you >might get sued if the other driver has no coverage to pay for them. >That’s where uninsured motorist coverage kicks in. Same way with >property damage. Say someone hits you and knocks you into another >person’s car. If the person hitting you has no insurance, and the >accident is not your fault, I don’t think your liability will pay, >although I could be wrong about this.
Quoting from my State Farm Policy: "Section I – Liability We will: 1. Pay damages which an insured becomes legally liable to pay because of: a. Bodiliy injury to others, and b. damage to or destruction of property including loss of its use, caused by accident resulting from the ownership, maintenance or use of your car; and 2. defend any suit against an insured for such damages with attorneys hired and paid by us." Notice it doesn’t say who is at fault, or where the injured party was (i.e. your car, the other’s car, pedestrian). Of course if your passenger is injured and the other party has no insurance, they will sue you to cover their expenses. In this case, YOU are legally liable for their damages, and your insurance company will defend you. (Sorry, Mom, but you’ll have to sue me. 
) Insurance companies push medical and uninsured insurance to save THEM the cost of defending YOU in court in a lawsuit, by paying injured parties directly. Mark A. Woyna | Advanced Computer Applications Center | "I love my country – Decision & Information Sciences Division | I fear my government" Argonne National Laboratory | Argonne IL 60439 | |
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– Hide quoted text — Show quoted text ->Waste of money. Read your policy. My collision coverage coversa damage to my >car due to an accident. Period. No mention about who caused the accident. Of >course if the other person is at fault, their liability coverage will pay >for the damage to my car. However, if the other driver is UNinsured or >UNDERinsured, my collision will cover the damage to my car. The additional >coverage of under/uninsured driver is money in your agents pocket. >As far as the car goes, this is true. Uninsured motorist coverage >(AKA underinsured motorist coverage) is like buying liability >insurance for the other guy who might hit you and not have his own (or >enough) coverage. It covers your pain and suffering and injury to you >(not your car). Some say that it is a "waste of money" since it >app4ears redundant if you have medical insurance. If you have a >serious accident with very high medical bills you might think >otherwise. Of course, coverages are optional (in most states) and one >can opt to take this risk.
My medical coverage has a $1 Million limit. The uninsured motorist coverage usually covers ~20-60K. I don’t see how this offers me anything additional. Also, I believe most policies will only pay out for the difference between your costs and any other money you may get (e.g. your own medical coverage) Mark A. Woyna | Advanced Computer Applications Center | "I love my country – Decision & Information Sciences Division | I fear my government" Argonne National Laboratory | Argonne IL 60439 | |
Response:
>>If the accident is the other person’s fault, your collision and >comprehensive don’t cover your damage; that’s what the other >person’s liability insurance is for. If that person has no >insurance, your uninsured motorist coverage would pay for your >damage and for your injuries. > I don’t think you’re correct. Comp and Collision cover your car, if you are > at fault. If you’re not at fault, they will still cover your car, and your > insurance company will [hopefully] get reimbursed by the at-fault party’s > property damage insurance.
This is my understanding too. Several years ago I talked to my insurance agent about uninsured coverage can came to the conclusion that the only thing is was good for was it would let me sue my insurance company for "pain & suffering" if I was at fault. It may also cover medical for one’s self, but since most folks have medical insurance already… (Which is another place to save on your policy.) Check it out with your insurance agent — a good one will tell it like it is, it your’s won’t, it’s probably a good time to find a new one… BTW, if you’ve got a car that’s several years old and not worth much consider dropping comp & collision — especially if you have the money to replace the car. Why not earn some of those profits for yourself, plus you might even become a better driver! You can save quite a bit if you have one of those nasty sports cars that cost a lot to insure… > Property damage is what your insurance company will pay to the other driver > if you’re at fault. That’s why it’s risky to only carry $5000 in property > damage. You hit a Lexus, and you’re up shit’s creek.
Good point, especially if you don’t want to buy someone a new car…
Response:
->>Waste of money. Read your policy. My collision coverage coversa damage to my ->>car due to an accident. Period. No mention about who caused the accident. Of ->>course if the other person is at fault, their liability coverage will pay ->>for the damage to my car. However, if the other driver is UNinsured or ->>UNDERinsured, my collision will cover the damage to my car. The additional ->>coverage of under/uninsured driver is money in your agents pocket. -> ->As far as the car goes, this is true. Uninsured motorist coverage ->(AKA underinsured motorist coverage) is like buying liability ->insurance for the other guy who might hit you and not have his own (or ->enough) coverage. It covers your pain and suffering and injury to you ->(not your car). Some say that it is a "waste of money" since it ->app4ears redundant if you have medical insurance. If you have a ->serious accident with very high medical bills you might think ->otherwise. Of course, coverages are optional (in most states) and one ->can opt to take this risk. -> ->as far as repair to the car — Mark is correct, the collision will ->cover the damage. ->– One reason to carry uninsured motorist coverage is to cover your passengers who if injured could hold you liable for their injuries even if you are not the guilty party. Other things your medical insurance might not cover would be lost wages, pain and sufferring, etc. It seems that most people responding to this thread are more concerned with who is liable (or pays) for damage to the vehicle and have ignored the much more significant personal injury problems. Cars can easily and relatively cheaply be replaced, but personal injuries can result in significant costs. -Bob
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>So what is the minimum medical coverage you can get? I know Illinois only >requires 25k.
There is no requirement in Illinois that you have medical coverage, only liability, which covers your passengers. >The uninsured insurance also is important in the case of hit and run >accidents. Something no one has mentioned here.
Your collision and liability will cover damages caused by uninsured or hit- and-run drivers. Again, uninsured insurance is redundant. Mark A. Woyna | Advanced Computer Applications Center | "I love my country – Decision & Information Sciences Division | I fear my government" Argonne National Laboratory | Argonne IL 60439 | |
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: Insurance companies push medical and uninsured insurance to save THEM the : cost of defending YOU in court in a lawsuit, by paying injured parties directl I think there are two additional points to add here: 1) "Pain and Suffering" are not something you can generally collect on from your standard medical coverage. I think you can try to collect on that from your insurance company via your uninsured motorist coverage. Probably varies by state, I’m speaking for CO. 2) Are your passengers sufficiently covered, that is, do they have reasonable medical coverage of their own? If not, are you really comfortable with them having to sue you to address their medical bills? Will your liability cover those bills? #2 seems a bit sticky. If I regularly car-pooled with friends that didn’t have great medical coverage, I would be very reluctant to drop the uninsured motorist coverage. Also, you probably want to make sure that your liability coverage is sufficiently high that your insurance company is "well motiviated" to provide you good legal defense! Or if nothing else, I think you want to make sure your liability is at least high enough to cover your passengers medical bills. (It doesn’t take much of a wreck to chew up $100K in medical bills, per person). While I think Mark is technically correct, or at least close to it, the above two items have remained my flimsy excuse for continuing to pay for "uninsured motorist" coverage. Stuart Remember: "Legal advice" on the net is worth considerably less than what you paid for it …
Response:
- Hide quoted text — Show quoted text – >[snip] >I only have collision on my car, no comprehensive, so I have UNinsured >motorist coverage so that in case some idiot without insurance hits me, >I’m covered. If I hit someone, my car is not covered, just the other >person’s car. Makes me want to drive much safer. 
>Waste of money. Read your policy. My collision coverage coversa damage to my >car due to an accident. Period. No mention about who caused the accident. Of >course if the other person is at fault, their liability coverage will pay >for the damage to my car. However, if the other driver is UNinsured or >UNDERinsured, my collision will cover the damage to my car. The additional >coverage of under/uninsured driver is money in your agents pocket. >Check you policy.
What about the person that carries only liability insurance, but does not carry collision? >Mark A. Woyna | >Advanced Computer Applications Center | "I love my country – >Decision & Information Sciences Division | I fear my government" >Argonne National Laboratory | >Argonne IL 60439 | > |
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>Waste of money. Read your policy. My collision coverage coversa damage to my >car due to an accident. Period. No mention about who caused the accident. Of >course if the other person is at fault, their liability coverage will pay >for the damage to my car. However, if the other driver is UNinsured or >UNDERinsured, my collision will cover the damage to my car. The additional >coverage of under/uninsured driver is money in your agents pocket.
As far as the car goes, this is true. Uninsured motorist coverage (AKA underinsured motorist coverage) is like buying liability insurance for the other guy who might hit you and not have his own (or enough) coverage. It covers your pain and suffering and injury to you (not your car). Some say that it is a "waste of money" since it app4ears redundant if you have medical insurance. If you have a serious accident with very high medical bills you might think otherwise. Of course, coverages are optional (in most states) and one can opt to take this risk. as far as repair to the car — Mark is correct, the collision will cover the damage. — Addiction Studies Pgm : Seattle University : Phone : (206) 296-5350
Response:
: [snip] : >I only have collision on my car, no comprehensive, so I have UNinsured : >motorist coverage so that in case some idiot without insurance hits me, : >I’m covered. If I hit someone, my car is not covered, just the other : >person’s car. Makes me want to drive much safer. : > : Waste of money. Read your policy. My collision coverage coversa damage to my : car due to an accident. Period. No mention about who caused the accident. Of : course if the other person is at fault, their liability coverage will pay : for the damage to my car. However, if the other driver is UNinsured or : UNDERinsured, my collision will cover the damage to my car. The additional : coverage of under/uninsured driver is money in your agents pocket. : Check you policy. : : Mark A. Woyna | : Advanced Computer Applications Center | "I love my country – : Decision & Information Sciences Division | I fear my government" : Argonne National Laboratory | : Argonne IL 60439 | : | Who will pay for any passengers injured in your car? Ans. — you might get sued if the other driver has no coverage to pay for them. That’s where uninsured motorist coverage kicks in. Same way with property damage. Say someone hits you and knocks you into another person’s car. If the person hitting you has no insurance, and the accident is not your fault, I don’t think your liability will pay, although I could be wrong about this.
Response:
– Hide quoted text — Show quoted text – >: >> I live in California, where uninsured motorist coverage is sold to you >: >> along with your liability coverage unless you decline it in writing. >: >> I’ve been taking the coverage for years, but now I’m starting to wonder >: >> if it is really worth it. My own cars are already covered by my comprehensive >: >> and collision coverage, and my health related expenses (and those of my >: >> family) are already covered by an HMO. So, I ask, what is the uninsured >: >> motorist coverage going to pay for that is not already covered by >: >> something else? >: >> >: >> >: >I think that’s underinsured motorist. I had a claim against another >: >insurance company (my stepson was rear-ended) and my insurance picked >: >up the difference from the other person’s (minimum) coverage up to >: >my coverage. Here in Illinois, I think the minimum is $25K/person >: >and I have $100K, so my company would pick up the difference ($75K). >: > >: > >: Underinsured/uninsured coverage is a scam! Unfortunately, in Illinois, a >: minimum amount of coverage is mandated by law. (Hmm, the Insurance industry >: wouldn’t be padding the politician pockets with PAC money, would they?) >: Damage to your car is covered by Collision insurance. Check out your policy. >: Also, medical coverage is a waste if you have health insurance. If someone >: is injured in your car, your liability coverage will pay their medical bills. >: >: Mark A. Woyna | >: Advanced Computer Applications Center | "I love my country – >: Decision & Information Sciences Division | I fear my government" >: Argonne National Laboratory | >: Argonne IL 60439 | >: | >Your liability will pay nothing if you were not at fault. If you >don’t have uninsured motorist protection, and the person who hits >you has no insurance, you and your passengers will get no medical >coverage from your policy. We just went through this in GA when >no-fault was changed to make personal injury optional.
This is not true in Illinois. Your liability covers you in case someone sues you for damages, even if the person was one of you passengers. I dragged this piece of information out of my State Farm agent when I pressed him as to why I need uninsured/underinsured and medical coverage. He said that medical coverage will pay immediately for injury to your passengers, and that to collect for damages from your liability coverage, your passengers would have to sue. I said, "Too bad. You (the insurance company) will be defending me in court, anyway." Again, read your policy. Mark A. Woyna | Advanced Computer Applications Center | "I love my country – Decision & Information Sciences Division | I fear my government" Argonne National Laboratory | Argonne IL 60439 | |
Response:
[snip] >I only have collision on my car, no comprehensive, so I have UNinsured >motorist coverage so that in case some idiot without insurance hits me, >I’m covered. If I hit someone, my car is not covered, just the other >person’s car. Makes me want to drive much safer.
Waste of money. Read your policy. My collision coverage coversa damage to my car due to an accident. Period. No mention about who caused the accident. Of course if the other person is at fault, their liability coverage will pay for the damage to my car. However, if the other driver is UNinsured or UNDERinsured, my collision will cover the damage to my car. The additional coverage of under/uninsured driver is money in your agents pocket. Check you policy. Mark A. Woyna | Advanced Computer Applications Center | "I love my country – Decision & Information Sciences Division | I fear my government" Argonne National Laboratory | Argonne IL 60439 | |
Response:
– Hide quoted text — Show quoted text – >: > I live in California, where uninsured motorist coverage is sold to you >: > along with your liability coverage unless you decline it in writing. >: > I’ve been taking the coverage for years, but now I’m starting to wonder >: > if it is really worth it. My own cars are already covered by my comprehensive >: > and collision coverage, and my health related expenses (and those of my >: > family) are already covered by an HMO. So, I ask, what is the uninsured >: > motorist coverage going to pay for that is not already covered by >: > something else? >: > >: > >: I think that’s underinsured motorist. I had a claim against another >: insurance company (my stepson was rear-ended) and my insurance picked >: up the difference from the other person’s (minimum) coverage up to >: my coverage. Here in Illinois, I think the minimum is $25K/person >: and I have $100K, so my company would pick up the difference ($75K). >: RC >If the accident is the other person’s fault, your collision and >comprehensive don’t cover your damage; that’s what the other >person’s liability insurance is for. If that person has no >insurance, your uninsured motorist coverage would pay for your >damage and for your injuries.
Your Collision coverage covers damage to your car. Uninsured motorist coverage is redundant and therefore not needed. Mark A. Woyna | Advanced Computer Applications Center | "I love my country – Decision & Information Sciences Division | I fear my government" Argonne National Laboratory | Argonne IL 60439 | |
Response:
– Hide quoted text — Show quoted text – >: >> >: >>If the accident is the other person’s fault, your collision and >: >>comprehensive don’t cover your damage; that’s what the other >: >>person’s liability insurance is for. If that person has no >: >>insurance, your uninsured motorist coverage would pay for your >: >>damage and for your injuries. >: >> >: > >: >I don’t think you’re correct. Comp and Collision cover your car, if you are >: >at fault. If you’re not at fault, they will still cover your car, and your >: >insurance company will [hopefully] get reimbursed by the at-fault party’s >: >property damage insurance. >: > >: Collision is insurance that covers your car in case of an accident that >: occurs while driving the car. Comprehensive covers things like hail storms, >: vandalism, theft, fire. >: >Property damage is what your insurance company will pay to the other driver >: >if you’re at fault. That’s why it’s risky to only carry $5000 in property >: >damage. You hit a Lexus, and you’re up shit’s creek. >: I thought that the absolute minimum you could get was 100k/300k coverage. I >: know most insurance agents suggest 250k/500k. >: — >No, GA, for example, stupidly required 25/50! Ridiculously low. >And the people who take the minimum probably haven’t got any other >assets to pay for damage or injury above that amount either.
So what is the minimum medical coverage you can get? I know Illinois only requires 25k. The uninsured insurance also is important in the case of hit and run accidents. Something no one has mentioned here. —
Response:
: >> I live in California, where uninsured motorist coverage is sold to you : >> along with your liability coverage unless you decline it in writing. : >> I’ve been taking the coverage for years, but now I’m starting to wonder : >> if it is really worth it. My own cars are already covered by my comprehensive : >> and collision coverage, and my health related expenses (and those of my : >> family) are already covered by an HMO. So, I ask, what is the uninsured : >> motorist coverage going to pay for that is not already covered by : >> something else? : >> : >> : >I think that’s underinsured motorist. I had a claim against another : >insurance company (my stepson was rear-ended) and my insurance picked : >up the difference from the other person’s (minimum) coverage up to : >my coverage. Here in Illinois, I think the minimum is $25K/person : >and I have $100K, so my company would pick up the difference ($75K). : > : > : Underinsured/uninsured coverage is a scam! Unfortunately, in Illinois, a : minimum amount of coverage is mandated by law. (Hmm, the Insurance industry : wouldn’t be padding the politician pockets with PAC money, would they?) : Damage to your car is covered by Collision insurance. Check out your policy. : Also, medical coverage is a waste if you have health insurance. If someone : is injured in your car, your liability coverage will pay their medical bills. : : Mark A. Woyna | : Advanced Computer Applications Center | "I love my country – : Decision & Information Sciences Division | I fear my government" : Argonne National Laboratory | : Argonne IL 60439 | : | Your liability will pay nothing if you were not at fault. If you don’t have uninsured motorist protection, and the person who hits you has no insurance, you and your passengers will get no medical coverage from your policy. We just went through this in GA when no-fault was changed to make personal injury optional.
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– Hide quoted text — Show quoted text -> I live in California, where uninsured motorist coverage is sold to you > along with your liability coverage unless you decline it in writing. > I’ve been taking the coverage for years, but now I’m starting to wonder > if it is really worth it. My own cars are already covered by my comprehensive > and collision coverage, and my health related expenses (and those of my > family) are already covered by an HMO. So, I ask, what is the uninsured > motorist coverage going to pay for that is not already covered by > something else? >I think that’s underinsured motorist. I had a claim against another >insurance company (my stepson was rear-ended) and my insurance picked >up the difference from the other person’s (minimum) coverage up to >my coverage. Here in Illinois, I think the minimum is $25K/person >and I have $100K, so my company would pick up the difference ($75K).
Underinsured/uninsured coverage is a scam! Unfortunately, in Illinois, a minimum amount of coverage is mandated by law. (Hmm, the Insurance industry wouldn’t be padding the politician pockets with PAC money, would they?) Damage to your car is covered by Collision insurance. Check out your policy. Also, medical coverage is a waste if you have health insurance. If someone is injured in your car, your liability coverage will pay their medical bills. Mark A. Woyna | Advanced Computer Applications Center | "I love my country – Decision & Information Sciences Division | I fear my government" Argonne National Laboratory | Argonne IL 60439 | |
Response:
>>If the accident is the other person’s fault, your collision and >comprehensive don’t cover your damage; that’s what the other >person’s liability insurance is for. If that person has no >insurance, your uninsured motorist coverage would pay for your >damage and for your injuries. >I don’t think you’re correct. Comp and Collision cover your car, if you are >at fault. If you’re not at fault, they will still cover your car, and your >insurance company will [hopefully] get reimbursed by the at-fault party’s >property damage insurance.
Collision is insurance that covers your car in case of an accident that occurs while driving the car. Comprehensive covers things like hail storms, vandalism, theft, fire. >Property damage is what your insurance company will pay to the other driver >if you’re at fault. That’s why it’s risky to only carry $5000 in property >damage. You hit a Lexus, and you’re up shit’s creek.
I thought that the absolute minimum you could get was 100k/300k coverage. I know most insurance agents suggest 250k/500k. —
Response:
: >> : >>If the accident is the other person’s fault, your collision and : >>comprehensive don’t cover your damage; that’s what the other : >>person’s liability insurance is for. If that person has no : >>insurance, your uninsured motorist coverage would pay for your : >>damage and for your injuries. : >> : > : >I don’t think you’re correct. Comp and Collision cover your car, if you are : >at fault. If you’re not at fault, they will still cover your car, and your : >insurance company will [hopefully] get reimbursed by the at-fault party’s : >property damage insurance. : > : Collision is insurance that covers your car in case of an accident that : occurs while driving the car. Comprehensive covers things like hail storms, : vandalism, theft, fire. : >Property damage is what your insurance company will pay to the other driver : >if you’re at fault. That’s why it’s risky to only carry $5000 in property : >damage. You hit a Lexus, and you’re up shit’s creek. : I thought that the absolute minimum you could get was 100k/300k coverage. I : know most insurance agents suggest 250k/500k. : — No, GA, for example, stupidly required 25/50! Ridiculously low. And the people who take the minimum probably haven’t got any other assets to pay for damage or injury above that amount either.
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: I think that’s underinsured motorist. I had a claim against another : insurance company (my stepson was rear-ended) and my insurance picked : up the difference from the other person’s (minimum) coverage up to : my coverage. Here in Illinois, I think the minimum is $25K/person : and I have $100K, so my company would pick up the difference ($75K). : RC In such a situation I might as well claim that it was my fault. They will raise my insurance but for 3 years it will never be $75K; yet I will receive the $75K from my company for damages. Nitin
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>If the accident is the other person’s fault, your collision and >comprehensive don’t cover your damage; that’s what the other >person’s liability insurance is for. If that person has no >insurance, your uninsured motorist coverage would pay for your >damage and for your injuries.
I don’t think you’re correct. Comp and Collision cover your car, if you are at fault. If you’re not at fault, they will still cover your car, and your insurance company will [hopefully] get reimbursed by the at-fault party’s property damage insurance. Property damage is what your insurance company will pay to the other driver if you’re at fault. That’s why it’s risky to only carry $5000 in property damage. You hit a Lexus, and you’re up shit’s creek. -Cougar | Dan Neuwirth | Does anybody really read these stupid | | Symantec Peter Norton Group| disclaimers anyway? I speak for myself. | | 2500 Broadway Suite 200 | 91 Ford Mustang 5.0 LX Hatchback | | Santa Monica, CA 90404 USA | 94 Saturn SL2, Everything but the Sunroof | | GCS -d+ H++ s+ g+ p? au+ a23 w v C++ N++ K- W++ M– po+ t+ 5 j tv b- D+ | | B– e -u h— f+ r+++ n+ x+++ < GC 2.1 > |
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It’s going to pay for your agent’s new inground swimming pool! Mark A. Woyna | Advanced Computer Applications Center | "I love my country – Decision & Information Sciences Division | I fear my government" Argonne National Laboratory | Argonne IL 60439 | |
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: : > I live in California, where uninsured motorist coverage is sold to you : : > along with your liability coverage unless you decline it in writing. : : > I’ve been taking the coverage for years, but now I’m starting to wonder : : > if it is really worth it. My own cars are already covered by my comprehensive : : > and collision coverage, and my health related expenses (and those of my : : > family) are already covered by an HMO. So, I ask, what is the uninsured : : > motorist coverage going to pay for that is not already covered by : : > something else? : : > : : > : : I think that’s underinsured motorist. I had a claim against another : : insurance company (my stepson was rear-ended) and my insurance picked : : up the difference from the other person’s (minimum) coverage up to : : my coverage. Here in Illinois, I think the minimum is $25K/person : : and I have $100K, so my company would pick up the difference ($75K). : : RC : If the accident is the other person’s fault, your collision and : comprehensive don’t cover your damage; that’s what the other : person’s liability insurance is for. If that person has no : insurance, your uninsured motorist coverage would pay for your : damage and for your injuries. Lloyd, did you read his post? He said UNDERinsured motorist coverage, which, as he says, covers what the other person’s insurance does not in case the claim exceeds his coverage. UNinsured motorist coverage is for those cases where motorists who have no coverage at all hit you. I only have collision on my car, no comprehensive, so I have UNinsured motorist coverage so that in case some idiot without insurance hits me, I’m covered. If I hit someone, my car is not covered, just the other person’s car. Makes me want to drive much safer. — –Michael Barnett UCS Consultant, Business Site Group, Indiana University
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: > I live in California, where uninsured motorist coverage is sold to you : > along with your liability coverage unless you decline it in writing. : > I’ve been taking the coverage for years, but now I’m starting to wonder : > if it is really worth it. My own cars are already covered by my comprehensive : > and collision coverage, and my health related expenses (and those of my : > family) are already covered by an HMO. So, I ask, what is the uninsured : > motorist coverage going to pay for that is not already covered by : > something else? : > : > : I think that’s underinsured motorist. I had a claim against another : insurance company (my stepson was rear-ended) and my insurance picked : up the difference from the other person’s (minimum) coverage up to : my coverage. Here in Illinois, I think the minimum is $25K/person : and I have $100K, so my company would pick up the difference ($75K). : RC If the accident is the other person’s fault, your collision and comprehensive don’t cover your damage; that’s what the other person’s liability insurance is for. If that person has no insurance, your uninsured motorist coverage would pay for your damage and for your injuries.
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- Hide quoted text — Show quoted text -> I live in California, where uninsured motorist coverage is sold to you > along with your liability coverage unless you decline it in writing. > I’ve been taking the coverage for years, but now I’m starting to wonder > if it is really worth it. My own cars are already covered by my comprehensive > and collision coverage, and my health related expenses (and those of my > family) are already covered by an HMO. So, I ask, what is the uninsured > motorist coverage going to pay for that is not already covered by > something else? >I think that’s underinsured motorist. I had a claim against another >insurance company (my stepson was rear-ended) and my insurance picked >up the difference from the other person’s (minimum) coverage up to >my coverage. Here in Illinois, I think the minimum is $25K/person >and I have $100K, so my company would pick up the difference ($75K). >RC
There are two possibilities to what you’re talking about. The first is if it’s "Uninsured Motorist deductible Waiver". I would _HIGHLY_ recommend getting this. I was involved in an accident on 3/10/94. I was at fault (I rear-ended somebody after they slammed on the brakes). I am insured with 20th Century, IMO one of the better insurance companies. The guy I hit A) was "borrowing" the car from a friend, B) was an illegal alien, and C) was completely uninsured. My collision deductable was $1000—a bit hefty. 3 days later, 20th Century called me and informed me that I didn’t have to pay my deductible, because I hit an uninsured motorist. Saved me $1000 for the $4/term I was paying. I got my car fixed (over $5000 worth of damage) without paying a penny out of pocket. Now, the other possibility is that it’s "Uninsured Motorist" Insurance. This is basically a substitute for medical insurance, and has nothing really to do with your collision insurance. If you’re in an accident, and incur for example $10K in medical costs, your uninsured motorist insurance will pay that if the other part(y|ies) are uninsured for your medical coverage. Uninsured motorist is useless if you already have medical insurance separately–you’ll be double-paying. I don’t carry it, as my company is kind enough to furnish a complete medical benefits package for me and my wife. -cougar | Dan Neuwirth | Does anybody really read these stupid | | Symantec Peter Norton Group| disclaimers anyway? I speak for myself. | | 2500 Broadway Suite 200 | 91 Ford Mustang 5.0 LX Hatchback | | Santa Monica, CA 90404 USA | 94 Saturn SL2, Everything but the Sunroof | | GCS -d+ H++ s+ g+ p? au+ a23 w v C++ N++ K- W++ M– po+ t+ 5 j tv b- D+ | | B– e -u h— f+ r+++ n+ x+++ < GC 2.1 > |
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I live in California, where uninsured motorist coverage is sold to you along with your liability coverage unless you decline it in writing. I’ve been taking the coverage for years, but now I’m starting to wonder if it is really worth it. My own cars are already covered by my comprehensive and collision coverage, and my health related expenses (and those of my family) are already covered by an HMO. So, I ask, what is the uninsured motorist coverage going to pay for that is not already covered by something else? Ira Leventhal California Semiconductor Test Operation Hewlett-Packard Telephone: (408) 553-3153 Fax: (408) 553-6839
Response:
> I live in California, where uninsured motorist coverage is sold to you > along with your liability coverage unless you decline it in writing. > I’ve been taking the coverage for years, but now I’m starting to wonder > if it is really worth it. My own cars are already covered by my comprehensive > and collision coverage, and my health related expenses (and those of my > family) are already covered by an HMO. So, I ask, what is the uninsured > motorist coverage going to pay for that is not already covered by > something else?
I think that’s underinsured motorist. I had a claim against another insurance company (my stepson was rear-ended) and my insurance picked up the difference from the other person’s (minimum) coverage up to my coverage. Here in Illinois, I think the minimum is $25K/person and I have $100K, so my company would pick up the difference ($75K). RC