Recently did a Defensive driving course - you know the drill with them - I learned something very helpful

Not many ins. companies tell people about it - gee I wonder why! Here is the information!
Uninsured and Underinsured Motorist Insurance Coverage

When you’re injured in a car accident caused by the other driver, you can legally sue the other driver in most states to collect the fair value of your injury. If that driver has auto liability coverage, his policy pays you on his behalf, up to the liability policy limit he purchased. The economic value of your injury equals your out-of-pocket expenses plus compensation for your pain and suffering. But what if the other driver has no insurance at all? Or what if the insurance limit he has is less than the value of your injury? You can get a legal judgment against him and try to collect from him personally. But that can be an expensive, long, drawn-out process. Plus if he’s not worth very much and has a limited income, you may not collect very much at all.
Fortunately, your own car insurance policy can solve the problem, if you buy Uninsured Motorists and Underinsured Motorists coverage:

Uninsured Motorists: When the other driver is unidentified ( hit and run) or has no liability insurance at all
Underinsured Motorists: When the other driver has less auto liability coverage than you and the economic value of your injury exceeds the other driver’s liability limit
I see these two coverages as a form of reverse liability in that you collect some or all of the economic value of your injuries caused by another driver from your own insurance company, almost as if they were the other driver’s insurer. In short, Uninsured and Underinsured coverage make up the gap between the other driver’s liability coverage and the amount of liability coverage he would have needed to pay your claim in full.

How do the two coverages work? Say you’re injured in a car accident by another driver who runs a stop sign. The economic value of your injury is $450,000. Further, assume that you bought $500,000 of both Uninsured and Underinsured Motorists coverage under your own auto policy. For an under-insured motorist, first, you collect for your injury from the other driver’s insurance in the amount of the other driver’s liability limit, say $100,000. Then, you collect the balance of $350,000 from your own insurance company under your Underinsured Motorists coverage. Had the other driver been without any insurance, you would have collected all $450,000 under your Uninsured Motorists coverage.
I'm definitely going to look into this!!

Re: Recently did a Defensive driving course - you know the drill with them - I learned something very helpful

This coverage is so important!!

This is perfect for someone like my brother, who got hit/hurt by someone with no license and no insurance... and especially those who are hurt bad - Kenneth can collect on his own policy to make up for the fact that this inconsiderate jerkoff who hit him had no license, job, insurance, and doesn't even own ANYTHING. So, there's nothing for my brother to get from him financially to make up for all he has put him through. For an average person things like lost wages, special surgery costs that you get with serious injury (because insurance doesn't cover everything or you might have to front the money first and be reimbursed all or just part later) but all that stuff can bankrupt someone... that is where this coverage becomes a lifesaver.

Luckily, my brother has great private insurance (workman's comp) that covers everything. What if he just had regular insurance... or even GOOD insurance?? This is the type of insurance that only covers 2-4 *WEEKS* of inpatient care at a facility like Kessler if you are hurt badly... My brother was there for SIX MONTHS. The average stay is 18 *DAYS*... and that's for GOOD insurance!! People we met there were paying OUT OF POCKET for their son which was about $75,000 for one MONTH. They are also laying out over 60 grand for him to have a surgery on his foot so he has a chance to walk again (he has a TBI - was hit by a hit and run drunk driver). This "special" surgery is not covered by insurance - they need to front the money and then they MIGHT get a small part back later on!

So, the key is to call your car insurance company and max out your Uninsured or Underinsured Motorist Bodily Injury coverage so you can collect on that if need be -- UNDERinsured covers the MORON who only takes minimum bodily injury coverage which is (in NY) only 10 grand. So, when this jacka$$ hits you going 90 mph my guess is your bills and lost wages and everything else is going to be more than just 10 grand. That is where you can go and make a claim on your own UMBI coverage. So, if you are hurt bad or miss work you can use that money to help with living expenses as well as whatever your health insurance won't cover... stuff like chair glides for the stairs, bathroom modifications, specialized treatments health insurance companies consider "experimental", etc. All that stuff! My brother's treatment which has made a night and day difference in him (the one in Jersey) is NOT covered whatsoever by any insurance. So, this is when this UMBI coverage money would really come in handy.

I tell everyone I know - max out your coverage in that area. It helps for those who have only the state minimum AND for those real GEMS who have no insurance at all. It won't cost you that much for the year -- you'll be surprised at how little you will pay for this increase -- but it will be the biggest lifesaver if, God forbid, something serious were to happen to you. I believe mine is $1,000,000.

HTH!!!


ETA: Yes, this also covers hit and run or "phantom" drivers like the douchebag that hit my husband a few years back, ran him off the road into trees and a pole, and left him there. Please excuse the bitter undertones of this post lol careless drivers who have little to no insurance and hurt people really get me going!

Message edited 4/9/2009 1:48:59 AM.

Re: Recently did a Defensive driving course - you know the drill with them - I learned something very helpful

yup..

the thing is many people carry around a low bodily injury liability limit.... and you can not select an uninsured/underinsured limit higher than than your bodily injury limit...

Re: Recently did a Defensive driving course - you know the drill with them - I learned something very helpful

yes, we have it! thanks!

Re: Recently did a Defensive driving course - you know the drill with them - I learned something very helpful

Something I happen to discuss with my clients.

Very Important!

Re: Recently did a Defensive driving course - you know the drill with them - I learned something very helpful

thanks for posting this- we have a bit of underinsured but not nearly enough based on what was written- I will definately increase it! thanks!

Re: Recently did a Defensive driving course - you know the drill with them - I learned something very helpful

Posted by DaniRella

I believe mine is $1,000,000.

HTH!!!

Re: Recently did a Defensive driving course - you know the drill with them - I learned something very helpful

We have this one all vehicles and it was a god send when I got into my accident 2 years ago because the guy that hit me had the crappiest insurance. His would not have covered half my medical. Mine covered all medical and treatments and I didn't have to pay a dime. I am so glad I had it. I recommend everyone to get it.

Re: Recently did a Defensive driving course - you know the drill with them - I learned something very helpful

Posted by MrsFab

Posted by DaniRella

I believe mine is $1,000,000.

HTH!!!

I just checked ours and we have 100,000/300,000- how do you know how much is enough?

Re: Recently did a Defensive driving course - you know the drill with them - I learned something very helpful

SO important to keep your limits high for all the reasons above. And the great part is, the increase to your premium is negligible.

In addition, if you have auto and home, ESPECIALLY if you have children of driving age, an umbrella is a very good idea. Again - negligible cost - I think mine is $200. a year for a million in coverage. It ties into both policies and pays out liability in excess of your premiums in the case of a lawsuit.

When I worked at a broker years ago, the owner of a well known car dealership in Massapequa had all his policies with us, including an umbrella. His 17 year old daughter caused a very bad car accident with her friend who was seriously hurt and the ONLY thing that saved their house, cars, and dealership was that umbrella policy. I learned from their lesson.