Do I Really Need Uninsured Motorist Protection?

by realistic user » Sun Nov 18, 2012 10:23 pm

This has probably been kicked around a thousand times here, so I apologize in advance as a new member for boring you! The way I understand my auto insurance is as follows (and this is assuming high/adequate limits in each category):

If I cause an accident, I have insurance for the harm I cause as follows:

I've got property liability insurance that covers the car I hit in an accident.
I've got bodily injury liability that covers the people in the car I hit in an accident.

If I don't cause the accident I'm not liable for either.

Now, for damages to my vehicle, whether I cause the accident or not:

I've got collision insurance to cover damage to my car in a collision.
and,
I've got comprehensive insurance to cover damage to my car from vandalism or a flood, etc.

Now for injury to myself or occupants:

I've got medical insurance that takes care of me in the event I'm injured in an accident, regardless of whose fault it is.

I've also got PIP--personal protection insurance--that takes care of my medical bills, deductibles included, in the event I'm in an accident, on top of my medical insurance, regardless of who is at fault.

So now, can someone tell me why I need uninsured or under-insured motorist protection?
Please don't get me wrong, I'm not being crass. But this seems to me triple insuring myself. And it seems to be only to benefit the insurance company.
Think about it this way: if they can collect from the other party that's the first thing they will do, and they normally won't pay anything. The other party is going to pay for all my medical bills and repairs to the extent of their policy.
If they can't collect from the other party then they've got to start paying. The odds are far more than 50/50 that they won't pay, even if the state is no fault. In a no fault state they pay you and then go and settle up with the other company.

Regardless, the more insurance they get you to buy, the more in the profit pot for payouts, and most importantly to them, the more left over for the bottom line.

Uninsured motorist pays when the other party is to blame and has no insurance. But your own medical insurance, and your own PIP, both take care of your medical bills. And your car is covered under collision insurance.

Under-insured: ditto, the policy just makes up the balance.

But both these just types of insurance are double/triple insuring yourself, and benefit the insurance companies primarily.
Of course, there's nothing wrong with going to Africa and back insuring yourself. But do you really need this coverage?

Anyone disagree, or have other thoughts/opinions?

Total Comments: 7

Posted: Mon Nov 19, 2012 01:37 am Post Subject:

So now, can someone tell me why I need uninsured or under-insured motorist protection?



It's not like anyone drives without insurance or they always have high limits, right? Some states only require something like $15,000 in BI coverage. You can burn though that in an ER visit, an MRI and about 2 months of treatment. This might be only for a soft tissue injury.

You mention PIP. That usually only addresses a percentage of medical bills and limited loss wages. You mention health insurance. That only addresses actual medical expenses, usually has a deductible and co-insurance and does not address loss wages. None of the above addresses pain and suffering.

Think about it this way: if they can collect from the other party that's the first thing they will do, and they normally won't pay anything


Collect what? If the other person is driving without paying for insurance you think that person is going to have something to collect? In the case of UM and UIM, your carrier pays up front. They don't wait for the other person to start paying nickles and dimes. Your carrier pays and then they attempt to collect money that will never be paid.

But both these just types of insurance are double/triple insuring yourself, and benefit the insurance companies primarily.


Nope. As mentioned above, none of those coverage address pain and suffering, most do not address loss wages and most mention will cost you something out of pocket.

UM and UIM does not come into play very often. For that reason it's dirt cheap. What is your states minimum for BI coverage? How much PIP does your policy provide? What if you cannot work for 2 months... who is going to pay your loss wages?

Up to you if you obtain the coverage.

Posted: Mon Nov 19, 2012 12:18 pm Post Subject: UM/UIM - unnecessary?

UM and UIM coverage pays for the hit-and-run accidents as well - those accidents for which you're not at fault. If you can't even get hold of the at-fault party, how can you expect him to pay or his insurer?

Posted: Mon Nov 19, 2012 01:33 pm Post Subject:

UM and UIM coverage pays for the hit-and-run accidents as well


Technically UIM does not.

Posted: Mon Nov 19, 2012 09:31 pm Post Subject:

My medical insurance doesn't have a deductible or a cap on anything. If I'm injured it pays for 90% of everything.
My automobile personal injury is $100,000 limit and has a $500 deductible. That's the most I can get.

All I'm asking is:
1) If injuries are covered under my medical insurance up to 90%.
2) If my personal injury coverage pays my medical insurance deductibles and another $100,000
3) Do I need to carry uninsured motorist bodily injury and under-insured motorist bodily injury coverage? I currently carry it, up to $300,000. But I'm wondering if it's really necessary with all the other coverage.
I UNDERSTAND THAT ONE CAN NEVER HAVE TOO MUCH INSURANCE. As an airline pilot we have a saying: the only time you have too much fuel is when you're on fire. So I understand, but could I be wasting a lot of money on premiums that are extremely unlikely to ever be needed?

Posted: Tue Nov 20, 2012 02:20 am Post Subject:

If I'm injured it pays for 90% of everything.


Not pain and suffering and not loss wages.

My automobile personal injury is $100,000 limit and has a $500 deductible.

I've never heard of PIP with a $500 ded or a $100k limit. What state is this?

You are not required to carry UM coverage. However, it does provide coverage that those others do not.

Posted: Tue Nov 20, 2012 05:20 am Post Subject:

I'm in Hawaii and I have Geico Insurance. $100k is the max here.

I'm laughing at the 'pain and suffering.' How would anyone ever collect for pain and suffering. That's insurance salesman talk!!!!
No one gets settlements for that stuff without several years in court. GET REAL!!

What bothers me is that no one has answered my question. Everyone has posted sarcasm after sarcasm when I' asking a legitimate question.

Big help this forum is.. . . .... ...... ..

Posted: Wed Nov 21, 2012 01:48 am Post Subject:

I'm in Hawaii and I have Geico Insurance. $100k is the max here


And the minimum is $10,000. So let me see if I have this correct... you don't want to pay more for UM coverage as you already are paying for other coverage to address your injury in an accident. But, in addition to your health coverage, you are paying for an extra $90,000 in PIP coverage.

I also don't see any mention of a $500 deductible on PIP in HI. Perhaps you are confusing the $5000 thresshold for a BI claim with a $500 deductible.

I'm laughing at the 'pain and suffering.' How would anyone ever collect for pain and suffering. That's insurance salesman talk!!!!
No one gets settlements for that stuff without several years in court. GET REAL!!

I did not know this. This will certainly make my job much easier knowing I don't have to simply pay out on UM claims and can instead pay defense counsel tens of thousands of dollars to defend a claim and only then pay out what I would have paid in a timely manner. Good to know.

You clearly don't understand how insurance claims work. In HI if your treatment exceeds $5000 then you have right of recovery against the at fault party and if they don't have insurance (or enough), then under your own UM/UIM. This certainly does include pain and suffering. I have news for you... those claims are paid each and every day. Don't let the ambulance chaser commercials fool you (they want nothing more then to take 33% of your settlement for a few hours worth of work).

What bothers me is that no one has answered my question. Everyone has posted sarcasm after sarcasm when I' asking a legitimate question.

Then perhaps you are not reading the replies as your question was answered in a very simply manner. We explained _exactly_ when UM would come into play, what it addressed and what it covered that others coverage would not consider. You were also told it was up to you to decide if you needed/wanted it. If you can't make up your own mind... blame yourself, not others. If you still don't fully understand what UM then you may want to have a sit down with your agent.

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