nasa60

I'm with you. It's not a big add if you have one car. I have four and you have to have the UIM coverage on all cars or no cars. They quoted me $200k of coverage at $55 per car per six months so $440 per year. No thanks.

lawguy

...but, if your state is one that permits "stacking" of UIM benefits (which many do - it multiplies your coverage by the number of insured vehicles), you essentially have provided yourself $800k in coverage for just $440 per year. Sure, its a hypothetical that you most likely wont need, but I'm just saying that in certain situations, espcially for 1 and 2 car households, adding extra UIM coverage is a cheap way to cover yourself.

I suppose the better analysis is to ask is whether you could live on the amount of your monthly disability benefits in the event of a very serious auto injury leaving you 100% disabled. With increasingly expensive & often limited health care coverage options at that point (and, the need to pay for your own coverage, if you're now recieving it via employment benefits), as well as lifetime maximum healthcare benefits limits on many policies, and a total loss of income (assuming a total disability), is $440/year worth an extra $200k in tax free recovery to you (or $800k, depending on state law), assuming the person who creams you has little to no coverage?

Some would say yes, some would say no. Neither answer is right or wrong...as with most insurance issues, its just a question of evaluating risk. My point was simply that its something worth considering, regardless of what decision you ulimately reach.

In other words, just food for everyone's thought. My point is that I see so many people who say "darn....if I had only known", so I wanted to pass on the message.

bmw093

Again, I respect everybody's opinion--but imagine being paralyzed as a result of a drunk driver with no insurance. Forget paralysis, imagine they fracture your neck, vertebrae, legs--anything serious. Then imagine that $440 would have given you $200K for your lifetime of suffering. Again, I don't sell insurance, I just see people (as recently as yesterday in fact) who suffered terrible injuries (multiple fractures, surgery with installation of hardware) and the guy who caused the accident was unlicensed, uninsured, and unregistered. The guy covered himself with $300,000 UM. Think he regrets the premium? We all make our own choices, and every choice has a consequence. All I'm saying, is think it through from all angles.

ExGMan

How about the idea of an umbrella policy to cover the liability area from say $300K to $2M? I have this from USAA but don't believe the UM and UIM is affected by this coverage. The umbrella seems to be a pretty cheap way to get a large liability coverage limit.

bmw093

Umbrellas are great for liability--but, just like you said, most don't provide UM and UIM coverage. I have USAA also, and I raised my UM/UIM to 1 million--I see too much terrible s#@% to have any less. I hate insurance, I hate spending money for something I may never need, but life and health are too important. Some people will spend $$ to get an extended warranty on a TV, but won't have enough protection for their health. Bad things happen to good people all the time so be safe.

Veight

When my son turned 16 last April, I checked with Geico and also added the umbrella policy. And of course un and under insured motorist.

This is no joke Geico saved me over $2,000 a year with my son on the policy. With my former insurance company I would have paid $4,800 a year for 3 cars with my son attached to one. With Geico, 3 cars, my son on one car, I pay $2,300 a year and that includes the umbrella policy which also covers my homeowners policy. Someone slips on my sidewalk Im covered to a million.

lawguy

My point exactly.

The analogy about the extended warranty on your TV is a great one - I may have to add it to my schpiel next time I lecture to a group...just dont sue me for infringement!

vern

+ 1 Thats what we have thru State Farm and it reduces the cost of liability on the auto insurance.
cheers
vern

steveo242

Great advice,

Yet another area where our country cares more about money than the right thing to do...

Thanks for positing!

bmw093

Just let me know who will accept service of process