Why do we carry uninsured motorist insurance?

10-22-2006, 09:44 AM

One of my buds who's brother is a claims manager with a major carrier and the bro said he thinks UMI is duplicative. He rarely processes a claim on UMI and if an accident occurs to one of his insured with the other person at fault and uninsured, he pays on his insured's collision coverage.

I realize other states are different, but for TX I think it makes sense to cancel my UMI. I can save close to $100 per month by doing so. Any insurance guys out there care to comment?

red-beard · red-beard's Garage

I did exactly this. My agent suggested it.

widgeon13 · 10-22-2006, 10:07 AM

I think if the insurance company pays on the collision portion of the policy, your collision premium will go up. The question is " will the increase exceed what you were paying for uninsured motorist coverage?"

I just checked my policy and I pay a flat $19 per 6 month premium and that is for each vehicle. I have three vehicles insured so that's $57 for half a year.

Hugh R · 10-22-2006, 10:17 AM

Just checked, I pay about $400 per year for UMI. But if an uninsured hits me, I get my collision deductable of $1,000 waived. In los angeles, the uninsured/underinsured is most likely to be illegal, or at any rate have no money or assets. Also, the state minimum is $10,000 for liability and collision. I carry $250K/$500K. I'd like to get an umbrella, but I can't with my house under another policy, and since I'm in a fire zone, I'm stuck with the home insurer that I can get and their auto is too expensive. In short, I carry UMI because of where I live and that I have enough assets to make it worthwhile for some schmuck to sue me.

10-22-2006, 11:19 AM

With 3 cars, looks like I'll save about $200 per year. I'm carrying a $500 collision but think I'll bump that up to $1K.

RoninLB · 10-22-2006, 11:20 AM

A rider for UMI is around $100/yr in NY for $500k [less your policy coverage]. If you have med expenses over their coverage it kicks in. NYS auto med accident charges for specifics is limited by the NYS ins bureaucracy.

I know a auto accident guy who was in a serious coma w/brain injury. If non-auto his med bill would have been $1.4M. Auto ins bureauracy said he could only be charged around $.5M. Without his UMI coverage he would now be staring at a wall and being fed drugs in his wheelchair forever instead of walking around and faking who he used to be now.

Rick V · 10-22-2006, 11:35 AM

I think UMI shouldn't be an option. If you can't afford insurance you shouldn't get tags. Yet again another way "the man" is breaking it off in those of us who follow the rules.................oh and work for a living.

campbellcj · 10-22-2006, 12:25 PM

I added the uninsured coverage after being at the wrong-end of a multi-car incident years ago caused by an unlicensed, uninsured young woman with a POS car. My agent said they would indeed pay under my policy w/o it but I'd be on the hook for the deductible, which the UMI covers. I don't recall the cost of the UMI rider but it's silly cheap in my case.

yasir · 10-22-2006, 04:21 PM

Had uninsured coverage,got nailed by this POS under insured girl,AIG paid the claim and then refused the renewal

My .02 cents are,**** the un insured,**** the undersinsured and above all **** these damn insurance companies

greglepore · 10-22-2006, 05:38 PM

Uninsured Motorist Coverage has nothing to do with collision-if you've sustained property damage by an UM, your collision coverage pays.

UM covers you for bodily injury (pain and suffering and meds in excess of your med coverage) which is caused by an uninsured motorist. Likewise Underinsured motorist coverage, which steps in after the liable party's liability coverage is exhausted. UM is optional in most states.

trekkor · 10-22-2006, 06:54 PM

I was driving with a trailer load of sheet goods once.
A piece "helicoptered" out onto the windshield of an oncoming SUV.

He didn't stop, let alone slow...No insurance?

KT

Por_sha911 · Por_sha911's Garage

Quote:

Originally posted by greglepore
Uninsured Motorist Coverage has nothing to do with collision-if you've sustained property damage by an UM, your collision coverage pays.

UM covers you for bodily injury (pain and suffering and meds in excess of your med coverage) which is caused by an uninsured motorist. Likewise Underinsured motorist coverage, which steps in after the liable party's liability coverage is exhausted. UM is optional in most states.

What if you don't have collision ins?

Zero10 · 10-22-2006, 07:05 PM

WHAT? The minimum PLPD coverage in california is $10k?!
Around here it is $100k, and most companies won't offer less than $500k.
Most of the time $10k doesn't pay for the car you hit, let alone the person's injuries....

I have un/under insured motorist coverage on my policy, it costs me $22/year. I've been hit by one person without valid insurance, but his insurance company was nice and paid out anyways. If you carry collision it is somewhat unneeded, but around here it pays you for your injuries as well as your vehicle.
Well it is more complicated than just that, Section B pays your medical bills, then UMI pays your vehicle damages and if it is a serious accident they pay you for your injuries (a lot less than what the other insurance company would pay though).