Uninsured motorist insurance.
- Thread starter horizonchaser
- Start date
R_W_B
Senior Member
Thanks for the clarification but either way I pay over $200 more for my (un and under).
Having been an independent insurance agent for over 27 years, my perspective may or may not have some value to some of the community members here. While I've had a property & casualty license for over 25 years, my main focus has been handling employee benefits, although I have done all sorts of individual insurance planning for many years.
In my opinion, if you have full coverage on your auto or motorcycle policy (which includes the state required liability coverage, as well as comprehensive and collision coverages), uninsured/underinsured motorists coverage is not necessary, if you have all of the rest of the important coverages in place. What these other coverages are is as follows.....
Everyone should have medical insurance coverage either individually, or via an employer sponsored group plan. True, this coverage will have some out of pocket exposure depending on the plan design, but the point is to get catastrophic coverage in place. Long term disability income insurance coverage is probably THE most important type of insurance coverage we all should have. How long can you go without a paycheck if you can't work due to a disability? Disability income coverage replaces your earning capacity if you cannot work due to disability. Long term care insurance coverage also is crucial as we all get older. Long term care coverage will help to keep you out of the nursing home by paying for things like home health care, etc. As the baby boomer generation moves into the retirement phase, our country's ability to care for seniors will be tested immensely. Personally controlled long term care coverage will pay for care when you cannot care for yourself, either partially or wholly, depending on the extent of your situation.
Lastly, you can all purchase what we refer to as supplemental coverages from carriers like Aflac (and other better carriers) that pay $ to the policyholder in the event of an accident to offset all sorts of expenses. If you're concerned about out of pocket exposures that the other types of coverages I've outline above don't completely cover, these supplemental coverages will provide for all of most of the exposure. In addition, the benefits get paid regardless of whether it was a real specific event such as a motorcycle or car accident.... it could simply be an accident where you fell off a ladder, got injured and incurred medical expenses from the fall in the back yard, etc. All of the above described benefits would provide benefits even though it didn't involve an accident on your motorcycle.
I would buy some sort of supplemental accident plan long before I paid for any PIP coverage on my auto or motorcycle insurance policy.
In my opinion, if you have full coverage on your auto or motorcycle policy (which includes the state required liability coverage, as well as comprehensive and collision coverages), uninsured/underinsured motorists coverage is not necessary, if you have all of the rest of the important coverages in place. What these other coverages are is as follows.....
Everyone should have medical insurance coverage either individually, or via an employer sponsored group plan. True, this coverage will have some out of pocket exposure depending on the plan design, but the point is to get catastrophic coverage in place. Long term disability income insurance coverage is probably THE most important type of insurance coverage we all should have. How long can you go without a paycheck if you can't work due to a disability? Disability income coverage replaces your earning capacity if you cannot work due to disability. Long term care insurance coverage also is crucial as we all get older. Long term care coverage will help to keep you out of the nursing home by paying for things like home health care, etc. As the baby boomer generation moves into the retirement phase, our country's ability to care for seniors will be tested immensely. Personally controlled long term care coverage will pay for care when you cannot care for yourself, either partially or wholly, depending on the extent of your situation.
Lastly, you can all purchase what we refer to as supplemental coverages from carriers like Aflac (and other better carriers) that pay $ to the policyholder in the event of an accident to offset all sorts of expenses. If you're concerned about out of pocket exposures that the other types of coverages I've outline above don't completely cover, these supplemental coverages will provide for all of most of the exposure. In addition, the benefits get paid regardless of whether it was a real specific event such as a motorcycle or car accident.... it could simply be an accident where you fell off a ladder, got injured and incurred medical expenses from the fall in the back yard, etc. All of the above described benefits would provide benefits even though it didn't involve an accident on your motorcycle.
I would buy some sort of supplemental accident plan long before I paid for any PIP coverage on my auto or motorcycle insurance policy.
R_W_B
Senior Member
Well forgive me since I don't want to offend you, but your state must have different mininum required coverages than Florida for you to say the above things. In fact, in Florida insurance agents have be sued in a court of law for presenting the NON need of underinsured coverage to a new signee as you stated above. The minimum coverages in Florida are downright negligent. The legislators have that guilt. They have been the same for the last 30yrs and health care costs have risen astronomically during the same time. All agents in Florida are aware of this and are careful to make a new signee aware of all his options.
If you have a lock down secure job with a fantastic health insurance plan that covers just about everything with very minimal copays, then I might go along with your idea (never with a castrophic policy). But what about compensation for loss of wages and future complications for a serious injury. Are you saying that Aflac etc is a better price, buy etc than the extra cost of underinsured and uninsured coverage ? I know of cases where the injury caused the person to be unable to continue in his current vocation. The court settled for payment of schooling to retrain him for a different vocation. If he had not had underinsured insurance he would have been out of luck (since the person at fault had no money to sue for). Last time I checked Aflac does not settle like that.
R_W_B
Senior Member
Carlin wrote (.... Everyone should have medical insurance coverage either individually, or via an employer sponsored group plan. True, this coverage will have some out of pocket exposure depending on the plan design, but the point is to get catastrophic coverage in place........)
Also just to clarify any ambiguity in my previous reply, if you have a employer provided plan (that does not cost you much in premiums or copays) then I could concede it's validity with the exception of specific future need issues that are not covered in a health plan but can be settled in a court of law with underinsured and/or uninsured coverage.
And as far as an individual (non employer provided) purchase catastrophic 'might' be somewhat finanically practical IF you were very young with no health issues. Insurance companines love to write cheap premium health policies to young healthy people. As you grow older the premiums increase 200 to 600 hundred percent accordingly. There is no way I can purchase a Castastrophic heath policy for the cost of my uninusured coverage. I know because I have both. When the economy fell out my employer stopped providing health ins for all employees, ever before the lay offs started. At 58 yrs (at the time) a castastopic policy was all I could afford, but it is way more than my uninsured coverage.
I'm glad you brought all this up though since it's always good to display ALL the options and aspects for anything.
Also just to clarify any ambiguity in my previous reply, if you have a employer provided plan (that does not cost you much in premiums or copays) then I could concede it's validity with the exception of specific future need issues that are not covered in a health plan but can be settled in a court of law with underinsured and/or uninsured coverage.
And as far as an individual (non employer provided) purchase catastrophic 'might' be somewhat finanically practical IF you were very young with no health issues. Insurance companines love to write cheap premium health policies to young healthy people. As you grow older the premiums increase 200 to 600 hundred percent accordingly. There is no way I can purchase a Castastrophic heath policy for the cost of my uninusured coverage. I know because I have both. When the economy fell out my employer stopped providing health ins for all employees, ever before the lay offs started. At 58 yrs (at the time) a castastopic policy was all I could afford, but it is way more than my uninsured coverage.
I'm glad you brought all this up though since it's always good to display ALL the options and aspects for anything.
I agree with R_W_B, the minimum insurance required would not necessarily cover the cost of some vehicles, and in many cases, (at least that I have seen) the difference of having under insured coverage is only a few dollars difference in the policy. I don't remember the specifics for Ohio, but we just spoke with our agent recently and it the minimum requirement wouldn't cover the cost of replacing our vehicles. Even if you have $50,000 coverage, but you wipe out an $80,000 car, do you think the owner of that $80,000 dollar car would take the hit for the $30,000 dollar difference? I don't think they would like that. For us, the difference to up our coverage AND add the under insured coverage was less than $5/vehicle. Just something to think about.
Sounds like $5.00 well spent IMO.
Forgive me please for apparently not being clear enough.... I am not advocating maintaining minimum liability coverage at all. I am also not trying to imply that uninsured/underinsured motorist liability coverage and health insurance cover the same things. If you have assets to protect, maintain enough liability coverage to cover those assets in the event of a catastrophe. That includes motorcycle liability. Health insurance, whether individual or group generally is catastrophic in nature. Differing plans will most certainly have differing out of pocket exposures come claim time. My point had been that if you have comp and collision coverages on your motorcycle policy, as well as health insurance, maintaining long term disability income coverage, as well as long term care insurance (which we all should have) will encompass far more risk coverage than the limited in scope motorcycle policy's uninsured/underinsured coverage. To be specific, the UM/UN coverage will only provide coverage if some uninsured/underinsured driver damages you or your vehicle. The comp and collision coverage already cover your bike's damage. Your health insurance, long term disability income and long term care cover you for medical care, loss of income due to disability, as well as cost of care if you are unable to care for yourself. Going one step further, a supplemental policy will pay for miscellaneous expenses to you in cash, REGARDLESS OF WHETHER IT HAPPENED ON A MOTORCYCLE OR NOT. The covered risk is rather all encompassing, as opposed to being very limited in scope.
If I came off as argumentative, I apologize. I simply do not feel that UN/UM coverage is a prudent expenditure of premium dollars if you have comp and collision, as well as the other proper personal health insurance coverage I've mentioned above. Naturally, everyone has a personal financial budget they must live within. Choosing the appropriate coverages within each person's budget is their own choice and hopefully there is an unbiased, knowledgeable insurance agent available to provide educated perspective on the choices one has.
If I came off as argumentative, I apologize. I simply do not feel that UN/UM coverage is a prudent expenditure of premium dollars if you have comp and collision, as well as the other proper personal health insurance coverage I've mentioned above. Naturally, everyone has a personal financial budget they must live within. Choosing the appropriate coverages within each person's budget is their own choice and hopefully there is an unbiased, knowledgeable insurance agent available to provide educated perspective on the choices one has.
I might add that we felt the same way.
I may have taken some offence though when my husband looked at me and said 'yeah, if she were going to take out a car, it would be a $100,000 Mercedes instead of an 87 buick'. :dknow:dknowCarlin, I get what you are saying too however, it did seem a bit misleading in your original post. :s No biggie, BTW, I am insured pretty good thanks to the benefits of (as my husband says) 'being burdened by gainful employment'.
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