Auto Insurance Claims/insurance policy

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Expert: webfoot - 9/28/2006


Question
What is uninsured motorist coverage for?

We have 2 cars.  Do we really need uninsured motorist coverage? if yes how much is minimun.

Answer
Uninsured motorist (UM)is just as important as liability coverage and is a must have.  

If someone without insurance or with very little insurance damages your vehicle and/or person, UM will stand in place of the non-existent or inadequate policy.  It covers the cost of repairing or the value of your vehicle, rental car expenses, medical bills, lost wages, pain and suffering etc.  It generally carries a lower deductible than collision coverage and allows you to make a claim in an uninsured loss, without using your collision.  While collision claims can be counted against you, UM claims are generally not.  

Recently, I had ear surgery.  The hospital bill for "day surgery" was nearly $20,000.  If someone runs into and causes serious injury, the medical bills can hit six figures within a week.  Even if you have health insurance, imagine what the out of cost expenses would be on such an event.  
Now what if, God forbid, you or a passenger in your vehicle are killed by an uninsured or underinsured motorist?  Most people only carry the state minimum required liability.  In Georgia for example, it is $25,000 per person.  I think that my life is worth a whole lot more than $25,000.  

Generally, UM limits of liability will follow whatever Liability limits you already have.  If your basic liability limits are $25/$50,($25,000 per person or a maximum of $50,000 per accident) then if you elect UM, it will be the same.  Adding to these limits is relatively inexpensive and I recommend at least $100,000.  Personally, I carry a whole lot more than that.  Not am I concerned about what would happen to me in a UM situation, but I've so often seen liability limits exhausted on other people's policies.  When that happens, those people are on the hook personally for the difference.

Good luck and I'd appreciate your feedback.

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webfoot

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Auto damage, liability, insurance fraud. I am a full time auto insurance adjuster with experience in collision, theft, liability and fraud investigation. I am also an ASE Master Auto Tech and I-Car Collision Platinum certified. My experience includes 15 years in the auto repair industry, a B.S. in Criminal Justice, Law enforcement and auto insurance. ****** NO "PRIVATE" QUESTIONS WILL BE ANSWERED. I HAVE FOUND THAT NEARLY ALL PRIVATE QUESTIONS COME FROM PEOPLE WHO ARE CONSIDERING OR ATTEMPTING TO COMMIT FELONY INSURANCE FRAUD AND I'M NOT HERE TO HELP YOU! ****** I AM HERE TO ANSWER AUTOMOTIVE REPAIR, CLAIMS PROCESS AND SOME SIMPLE LIABILITY QUESTIONS. I CANNOT ADDRESS COMPLEX LIABILITY SCENARIOS WITHOUT HAVING ALL OF THE INFO FROM BOTH SIDES IN FRONT OF ME. QUESTIONS ABOUT PREMIUMS OR HOW INSURANCE IS RATED SHOULD BE ADDRESSED TO YOUR PERSONAL INSURANCE AGENT WHO KNOWS A WHOLE LOT MORE ABOUT YOUR HISTORY THAN I DO. I'VE NEVER SOLD INSURANCE AND DO NOT KNOW IF YOUR INDIVIDUAL INSURANCE RATES WILL GO UP IF YOU MAKE A CLAIM. THOUGH I'VE HANDLED SOME VERY MINOR SOFT TISSUE INJURY SETTLEMENTS, I PREFER NOT TO ANSWER INJURY RELATED QUESTIONS. I'M NO INJURY EXPERT AND I'LL LIKELY SAY SOMETHING TO HURT SOMEONE'S FEELINGS AS I BELIEVE THAT MANY SOFT TISSUE PAIN AND SUFFERING CLAIMS ARE OVER DRAMATIZED. UNLIKE MANY OTHERS, I AM ON THIS FORUM AS A VOLUNTEER WITH NO PRODUCTS OR SERVICES TO SELL AND PROMISE AN UPFRONT ANSWER BASED ON MY EXPERIENCE IN BOTH SIDES OF THE INDUSTRY. IF YOU PROVIDE ME WITH A HONEST VERSION OF EVENTS, I PROMISE A CANDID AND HONEST ANSWER IN RETURN. I CANNOT ADDRESS ALL CLAIM SCENERIOS DUE TO DIFFERING STATE LAWS AND REGULATIONS, BUT WILL DO MY BEST. PLEASE REMEMBER THAT AN HONEST ANSWER MAY BE ONE THAT YOU DON'T LIKE SO IF THAT IS GOING TO BE A PROBLEM, PLEASE DON'T ASK THE QUESTION. LASTLY, I DO NOT ACCEPT RATINGS AS I DON'T DO THIS FOR RATINGS AND WISH TO SPEAK FREELY.

Experience

20 years in automotive industry, Currently in insurance claims, worked actively as technician and shop owner until about 10 years ago. Current ASE Master Auto Tech and I-Car Platinum Collision Certifications, B.S. Criminal Justice and 10 year auto insurance/extended warranty background

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