Author Topic: Uninsured Motorist Coverage?  (Read 3044 times)

FLBiker

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Uninsured Motorist Coverage?
« on: November 03, 2016, 09:51:25 AM »
TL, DR - we have good health insurance but live in a state with lots of uninsured motorists.  We are currently paying about $600 (per year) for 25,000/50,000 coverage.  I'd like to drop it.  What do you think?

If you've got more time and are willing to double check my thinking, here's our whole auto insurance picture.  I'm 40, DW is 36, clean driving records.
Cars are a 1999 Ford Explorer Sport (no comp or collision) and a 2009 Corolla (currently w/ comp and collision).

                                            Current Coverage      Thoughts
Bodily Injury                        100,000/300,000        keep - most of ~500K stash is in retirement accounts which are protected in FL
Property Liability                  100,000                      keep
PIP Insured and Relative     10,000 (500 deduct)   raise deductible to 1000 (highest) - 10000 is the state minimum. (saving ~$60 per year)
Stacked Unins. Mot.             25,000/50,000            drop - we have good health insurance (savings ~$600 per year)
Comprensive (Corolla)         500 deduct                 drop - can afford replacement car (savings~$80 per year)
Collision (Corolla)                500 deduct                  drop - can afford replacement car (savings ~$150 per year)

I hesitate to drop comp / collision on the Corolla because they are so cheap.  Also, my folks recent had an accident that wasn't their fault, and since they didn't have this coverage, their insurance company didn't help them get the other insurance company to pay to replace the car (so they got a lawyer).  Still, if our plan is to replace the car ourselves (with something in the 5-6000 range) it's not such a big deal.  And I thought about raising the comp / coll deductibles to 2500, but then I'm halfway to a replacement car.  Clearly, though, the big issue is Uninsured Motorist Coverage.

The GEICO quote replicating our current coverage is $2100.  If I make the changes above, it's $1280.

Grateful for any thoughts, and please don't hesitate to ask questions.

Thanks!

BlueMR2

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Re: Uninsured Motorist Coverage?
« Reply #1 on: November 03, 2016, 09:54:39 AM »
I might consider bumping the 300k to 500k.  I'm in a similar situation where the bulk of my money is in various accounts that offer some degree of protection, but going to 500k cost me so little (about half what you're paying for comprehensive, which you consider cheap!)...

FLBiker

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Re: Uninsured Motorist Coverage?
« Reply #2 on: November 03, 2016, 09:59:51 AM »
Interesting, thanks!  It looks like it would be $150 per year to do that, which isn't terrible.  Would you suggest doing the property damage one up to 250 then as well?  That would cost almost nothing.

Dezrah

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Re: Uninsured Motorist Coverage?
« Reply #3 on: November 03, 2016, 10:23:26 AM »
This is more a PSA than specific advice.

Most of us are aware that liability coverage is for medical coverage for either yourself or the other injured party.  In many states it is legal for hospitals to decline health insurance and insist they be paid by you through the auto insurance settlement.  If you or the other party is insufficiently covered, you could be liable for significant medical bills. 

Accident settlement can take a long time and those bills will stay there on your record.  Hopefully they don't send you to collections, but it's not unheard of.  It's the stupidest thing.  Some states have outlawed this practice (hospitals have to accept your health insurance if you have it regardless of liability and it's up to your health plan to sue your auto for settlement if they want to) but not all.

For this reason, my husband insists we have to get a stupid amount of liability and uninsured motorist coverage. 

TheInsuranceMan

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Re: Uninsured Motorist Coverage?
« Reply #4 on: November 03, 2016, 10:37:26 AM »
Okay, I'm biased, because as you can see from my username, I'm an insurance guy.

UM/UIM is to cover YOU and YOUR passengers in the event you are in an accident caused by someone under insured or uninsured (which you appear to understand).  $600 a year seems outrageous for 25k/50k thought, so I understand your viewpoint on it.  However, I'd be real hesitant to drop the coverage completely, as it really is there for you and any expenses you might incur in the event of an accident like I listed above.  Also, part of that rate is because FL is stupid expensive in the insurance world.

Just pulled up my policy as an example - based on a 12 month premium.  2 drivers, me (male) 28, wife 27.  Two vehicles, 2012 Chevy Traverse and a 2008 Ford F150, yearly premium of $1,033.04, with full coverage on both vehicles, and 500k/500k liability limits (100k PD - probably low).
My UM/UIM total yearly premium for 500k of coverage costs us $74.08.  No brainer for me to keep it on the policy, but your situation is different.


ohsnap

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Re: Uninsured Motorist Coverage?
« Reply #5 on: November 03, 2016, 10:39:26 AM »
You mentioned good health insurance twice.  UM isn't just for medical payments.  It will cover you for disability, death, lost wages, pain & suffering, collision deductible, etc.  We keep ours at $100k/$300k. 

FLBiker

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Re: Uninsured Motorist Coverage?
« Reply #6 on: November 03, 2016, 10:42:15 AM »
You mentioned good health insurance twice.  UM isn't just for medical payments.  It will cover you for disability, death, lost wages, pain & suffering, collision deductible, etc.  We keep ours at $100k/$300k.

Sure, I understand, but the fact that I'm just getting 25/50000 makes it much less meaningful -- if I'm dead, 50000 isn't going to make a big difference.  And I've got a secure job with good benefits that I could do with significant physical injuries, so I'm not so worried about disability or lost wages.  To me, the only thing that could get expensive w/ an uninsured motorist is medical bills (and 25/50000 wouldn't go so far in that direction).

ohsnap

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Re: Uninsured Motorist Coverage?
« Reply #7 on: November 03, 2016, 10:57:53 AM »
Well, I feel your pain...we have 3 cars & drivers covered, and our $100k/$300k is only $18/month!  Your cost is pretty crazy for coverage that isn't really meaningful.

rulesofacquisition

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Re: Uninsured Motorist Coverage?
« Reply #8 on: November 04, 2016, 07:46:25 AM »
http://livingstingy.blogspot.com/2011/11/uninsured-motorists-insurance-its-not.html


OK, maybe I'm dense or getting bad info, but if I didn't have uninsured motorist coverage, wouldn't my collision cover the damage to the car? I don't have health insurance, I have a christian share plan, but I did ask them if I was required to sue anyone before they covered bills and they said no. So unless I dropped full coverage does this even matter?

sailinlight

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Re: Uninsured Motorist Coverage?
« Reply #9 on: November 04, 2016, 08:17:44 AM »
Wow, Florida must be some strange outlier regarding uninsured motorists.  I pay less than $100 for 300k/500k coverage.  One would think that if it is that expensive where you live, the chances of getting injured by an uninsured/inadequate insured person must not be so low.  Also just looked up that the minimum liability coverage there is only $10k!  I would definitely get it.

financiallypossible

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Re: Uninsured Motorist Coverage?
« Reply #10 on: November 04, 2016, 10:34:45 AM »
TL, DR - we have good health insurance but live in a state with lots of uninsured motorists.  We are currently paying about $600 (per year) for 25,000/50,000 coverage.  I'd like to drop it.  What do you think?

If you've got more time and are willing to double check my thinking, here's our whole auto insurance picture.  I'm 40, DW is 36, clean driving records.
Cars are a 1999 Ford Explorer Sport (no comp or collision) and a 2009 Corolla (currently w/ comp and collision).

                                            Current Coverage      Thoughts
Bodily Injury                        100,000/300,000        keep - most of ~500K stash is in retirement accounts which are protected in FL
Property Liability                  100,000                      keep
PIP Insured and Relative     10,000 (500 deduct)   raise deductible to 1000 (highest) - 10000 is the state minimum. (saving ~$60 per year)
Stacked Unins. Mot.             25,000/50,000            drop - we have good health insurance (savings ~$600 per year)
Comprensive (Corolla)         500 deduct                 drop - can afford replacement car (savings~$80 per year)
Collision (Corolla)                500 deduct                  drop - can afford replacement car (savings ~$150 per year)

I hesitate to drop comp / collision on the Corolla because they are so cheap.  Also, my folks recent had an accident that wasn't their fault, and since they didn't have this coverage, their insurance company didn't help them get the other insurance company to pay to replace the car (so they got a lawyer).  Still, if our plan is to replace the car ourselves (with something in the 5-6000 range) it's not such a big deal.  And I thought about raising the comp / coll deductibles to 2500, but then I'm halfway to a replacement car.  Clearly, though, the big issue is Uninsured Motorist Coverage.

The GEICO quote replicating our current coverage is $2100.  If I make the changes above, it's $1280.

Grateful for any thoughts, and please don't hesitate to ask questions.

Thanks!

That does seem a steep price for uninsured motorist for the amount of coverage/benefits. Have you modeled raising the deductibles on comprehensive and collision instead of dropping them entirely?

FLBiker

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Re: Uninsured Motorist Coverage?
« Reply #11 on: November 08, 2016, 10:49:40 AM »
That does seem a steep price for uninsured motorist for the amount of coverage/benefits. Have you modeled raising the deductibles on comprehensive and collision instead of dropping them entirely?

Yes.  I might end up doing that, thanks!  I'm quite sure I'm going to get rid of the uninsured motorist coverage.  I spoke with a GEICO agent, and it's really just for healthcare.  DW, DD and I all have good health insurance (work for the state).