Uninsured Motorist Coverage. Reject?

[Bpreynolds2]

Hey all, this board is always a source of great information even aside from motorcycles; thus, I’m asking this question.  Couple years back my wife and I switched our home/car insurance to State Farm.  The other day I got a letter from them asking me to sign a form (optional in KY) if I was going to deny/reject the uninsured motorist coverage.  In KY if you don’t want this you must sign a form saying so.  What’s so bizarre is I am 49 now and don’t ever recall signing one of these forms in the past with Kentucky Farm Bureau nor even on the car policy several years ago with State Farm.  I did recently swap to an older car for myself but I have no idea if that has anything to do with it.  Anyhow, so 2 questions then.
1) Should I reject this?
2) Any ideas why I’m just now seeing one of these forms?
Thanks.  Any input much appreciated. 

[rocker59]

If there is on thing a person needs,  it's uninsured/under insured motorist coverage.

I have no idea why you'd want to waive that coverage.

To answer your question,  anytime you waive a coverage like that, they'll want a signed waiver to cover their asses.

[RinkRat II]

    Even in Arizona with mandatory insurance laws we still have a very high rate of uninsured or underinsured accidents. Catch 22/necessary evil, better to have it and not need it than theother way around. My  $.02

       Paul B

[oldbike54]

 In most states uninsured/under insured coverage only covers medical expenses . I would contact your agent and ask questions .

 Dusty

[Bpreynolds2]

In most states uninsured/under insured coverage only covers medical expenses . I would contact your agent and ask questions .

 Dusty

Good point, Dusty.  It seems obvious you’d want it if it covers the vehicle but if it only applies to medical coverage - and you have health insurance - then I dunno. 

[oldbike54]

Good point, Dusty.  It seems obvious you’d want it if it covers the vehicle but if it only applies to medical coverage - and you have health insurance - then I dunno.

 I really have no idea what Kentucky law says about uninsured coverage , it can help cover deductibles and in most cases will cover passengers in your vehicle who might not have health insurance . Once again , I would contact your agent and ask questions , laws vary a bit state to state .

 Dusty

[John Ulrich]

    Even in Arizona with mandatory insurance laws we still have a very high rate of uninsured or underinsured accidents. Catch 22/necessary evil, better to have it and not need it than theother way around. My  $.02

Correct.  You buy insurance to insure you against others. 

[Scud]

I insure for quite a bit more than the minimum for liability in case I (or one of my kids) makes a mistake. I have good health insurance and have decided to decline the uninsured coverage. I also do not carry comprehensive or collision on anything except my wife's new car, which has a loan on it. I think insurance as a whole is a waste of money - because insurance companies make a lot of profit and I don't like betting against myself. I'll probably reduce my liability once the kids have their own insurance. I can't tell you what to do, but those are my thoughts.

[GeorgiaGuzzi]

Do not reject it.

If you are struck by a hit and run driver as is too common for motorcyclists the driver who fled the scene of the accident is automatically assumed to be uninsured. You or your lawyer can then file a claim for medical AND property loss and get a settlement. I speak from personal experience as the victim of a hit and run in April of ‘19. Speak to your lawyer to confirm laws are similar in KY. I’m in GA.

[GeorgiaGuzzi]

Just a follow up. In Jan. of 19 I was hit while on my motorcycle by a driver who was driving a rented van but was not listed as an authorized driver. The renter of the vans insurance was progressive, and the renter was in the van at the time. Progressive said nope, not insured. Rental agency said nope, not liable. My insurance (also at the time progressive) would have filed a claim under my uninsured drivers policy. But it turns out the drivers insurance company would cover him. But it took me 3 months of fighting with three different insurance companies to get the settlement for my motorcycle. If he’d had cut rate insurance I would have been up a creek if I hadn’t had it. Just more food for thought.

[cookiemech]

In most states uninsured/under insured coverage only covers medical expenses . I would contact your agent and ask questions .

 Dusty

Exactly. That is true in Pennsylvania. If you have your own medical coverage, exactly HOW would the uninsured/underinsured coverage help you? You cannot "double" collect insurance money.

I'd really like to know, as I have always rejected this coverage (I have good medical insurance).

[Mayor_of_BBQ]

Exactly. That is true in Pennsylvania. If you have your own medical coverage, exactly HOW would the uninsured/under-insured coverage help you? You cannot "double" collect insurance money.

I'd really like to know, as I have always rejected this coverage (I have good medical insurance).

You must have pretty good medical insurance if you don't mind footing the bill for your deductibles, co-pays, medical equipment, ambulance ride, physical therapy co-pays etc etc etc after some uninsured jack-off hits you.  I don't have great medical insurance (more or less catastrophic policy) and i would be on the hook for thousands in 'hidden' 'extra' costs if someone hit me and they had no insurance... Because those charges arent covered by my insurance.  What about your vehicle, lost time off work, pain and suffering, rental vehicle while yours is repaired, etc??

IMHO Liability & uninsured motorist is the absolute minimum you need.

[stonelover]

I regard any form of insurance as simply a form of legalized gambling. Uninsured coverage is usually inexpensive and well worth the peace of mind. We hope to never use it, but good to have.

[blackcat]

Uninsured motorist in Floriduh is $260.00 per bike (X 5=too much money) because there are lots of uninsured motorists out there. When I changed to Progressive on the cars we stacked the coverage to the bikes and now I’m covered.  In NY state my uninsured coverage was $1.00 per vehicle/bike.

[sib]

If you are planning to die at the scene of a collision, you don't need uninsured motorist coverage.  But, if you have an extended period of hospitalization before you die, then someone in your family has to pay for all of the deductibles, etc.  Better to spare them the burden and get the insurance.

[LowRyter]

I would bet the form is rolled up into whatever medical insurance/medicare expansion rules that the state has implemented.

This is not a political statement.  This is only a possible explanation why KY is doing this now.

[oldbike54]

 Once again , insurance laws and rates vary from state to state . Any licensed agent in a state will be able answer questions . Comprehensive and collision , normally shortened to *comp* will in most states cover any property loss caused by an uninsured motorist beyond your deductible , and UM will normally cover only medical . A few minutes with an agent can answer any questions .

 Insurance is only expensive until you need it , not unusual for one big claim to run well into six figures , and most of us never pay anywhere near that much in a lifetime .

 Dusty

[acguzzi]

If I can afford to take the hit I always decline coverage, it's a numbers game, that's how the insurance companies make money, big medical bills may be above what you are comfortable with. Obviously it's your choice how much risk you are willing to take, but going through an insurance company to buffer your costs is an expense you choose whether or not to pay.

[nbags]

i have a personal experience on this i was involved in an accident and person took off , after trip to hospital and having health insurance still had to come up with over $3000 for deductible and co pay, the reason i had drop uninsured motorist 12 years prior because of the cost at that time. Looked into after the fact and uninsured motorist is very small , about $25 per year per vehicle lesson learned too late .

[Dilliw]

I regard any form of insurance as simply a form of legalized gambling. Uninsured coverage is usually inexpensive and well worth the peace of mind. We hope to never use it, but good to have.

In betting terms it has a high expected return especially in States that allow "stacking"  of converge.  When we had our "incident" we had 3 vehicles insured at $50k/ea for a stacked total of $150k.  It made the whole process of dealing with the adjuster much easier; no lawyer required!

And just to be clear, if you are not at fault in an accident these days you will most likely be dealing with your own insurance anyway.  Some States have $10k and $15k minimum coverage and that's assuming the other vehicle has at least some coverage.  When a Toyota Corolla cost more than $20k then you see that you are at risk, without underinsured/uninsured, the moment you drive off the lot.

[Scud]

Good discussion. I am going to take another look at the uninsured coverage. I don't think it was terribly expensive - but just seemed an unnecessary expense at the time that I declined it. Though somewhat small, it does add up with 5 licensed drivers in my house and one of them (me) having multiple vehicles.

Now I'm straying a bit from the original topic a bit, but the biggest savings is not carrying comp and collision if you can afford to replace the vehicle after a total loss.

[usedtobefast]

I was talking with my agent a few years back about this ... I suggested I drop all my insurance and let the other person's uninsured motorist insurance cover things ... I was messing with them, and they panicked for a few minutes.   

In CA, things are pretty bad.  First, there is really no connection between having legal license plates and insurance.  No DMV or agency checks it.  So totally easy/possible to have your car registered and have no insurance.  Add to that, insurance is very high here.  So TONS of people driving around with no insurance.  But, our uninsured motorist coverage is also pathetic.

As others have suggested, talk with your agent, discuss scenarios ... like an uninsured motorist is 100% at fault, totals your vehicle, and causes you $50,000 in medical bills ... what would the uninsured motorist insurance pay?  I don't remember the CA answer, but it was bad, like 0 on the vehicle, and like $5K on the medical, which my existing medical insurance would cover anyway ... so for me, it was just extra money for my insurance company with no real extra coverage.

[Lannis]

Good discussion. I am going to take another look at the uninsured coverage. I don't think it was terribly expensive - but just seemed an unnecessary expense at the time that I declined it. Though somewhat small, it does add up with 5 licensed drivers in my house and one of them (me) having multiple vehicles.

Now I'm straying a bit from the original topic a bit, but the biggest savings is not carrying comp and collision if you can afford to replace the vehicle after a total loss.

Since no one has a lien on any of my cars or bikes, and thus can't require me to carry insurance on them, I just have "liability" (required by the state) and "uninsured motorist" coverage.    My vehicles are at very low risk of being stolen, hence no "comprehensive", and I figure that if I dent or wreck a car or bike (which I haven't done in 50 years), then that's on me to fix, so no "collision" insurance.

So far that bet has been paying off.   I've probably saved $60,000 in insurance premiums over the years, and if I have to replace a vehicle, I'm still money ahead .... !!

In Virginia, the insurance companies and the state DMV share the same database.   If the insurance company notices that you've dropped your insurance, you will instantly get a nastygram from the DMV saying "Buy insurance now or we'll cancel your tags and registration".   Similarly, when you buy tags, the transaction won't go through unless the database says your insurance is up to date.   You CAN insure a car with no tags if you'd like to do that, but that doesn't help anyone ....

Lannis

[Bpreynolds2]

Here is the exchange with my State Farm agent:

Hey (deleted), hope the new year finds you doing well.  This is something I’ve been meaning to follow up with you (or someone there in the office) about for a while now. Apologize that I haven’t gotten back with you sooner, just want to be clear on what I’m rejecting per se.

Quick question.  In KY, the uninsured motorist coverage only applies to medical bills, is this correct?  It doesn’t apply to the auto itself or am I confused?  If it’s only with relation to medical coverage then I have our own health insurance so we will probably reject.  Just trying to be clear on what I’m rejecting. 

Any help much appreciated. 
Brian

Response:
Hope all is well with you and the family!
This coverage is for medical bills due to bodily injury in a car accident when the other person has very little insurance or no insurance it also can help with loss of wages.

In Ky you only have to purchase on one car in the household so it extends to all vehicles so the rejection form is stating that you only want to have it on one car not duplicate it. The form is worded so difficult.
Hope this helps

[LowRyter]

yadaya

Having been thrown out of a Corvette and into the ground and breaking my back, I was glad to get the $10k from insurance after my medical insurance declined my coverage when I was on my back in the hospital for a week.  It was not good news to hear the day I got home.  So the $10k turned it all around.   Luckily there was no subrogation and it worked out to my advantage.  This was "medical coverage" on my car, I wasn't driving but analogous uninsured motorist.

I would never turn down insurance coverage.  Especially if it's pennies on the hundreds of dollars from a credible company.  "Credible" is another operative term and if it's cheap, check the box.

You're not going to win or beat the system.  You'll pay up and hope to break even.  That's as good as it gets.

[Motormike]

If you have deep enough pockets, you can afford to "self-insure."  Like some here, I never carry collision after a vehicle I own free and clear depreciates down to below my personal "pain threshold" of how much money I want to lose if it's totaled or stolen.  Medical and liability exposure are another matter: how high is up?  Four figures, Five figures...six figures? There's just know way of knowing what the total costs could be so I insure accordingly.  After an accident, no one ever said, "Damn, I've got too much insurance!" 

[Ryan]

This was a hot topic on the V11 board a decade or so ago, and I see it continues. I was an insurance agent for years, and discussed this many times. While it is called "Uninsured/under-insured motorist bodily injury coverage" or something similar, it pays for expenses resulting from a bodily injury. Lost wages, medical devices, co-pays and medical deductibles all fall under this umbrella, not just doctor bills.

In some states you can get both uninsured/under-insured motorist bodily injury coverage, and uninsured motorist property damage. I carry both. I have medical coverage, but that won't replace my wages if I can't go back to work for days/weeks/months after an accident. It won't pay for modifications to my vehicles or home that I may need during my recovery or for the rest of my life.  It won't pay for the deductibles and  co-pays.  A shattered leg or pelvis, or a TBI will generate cost and lost income that can far exceed the hospital bill, and your medical insurance will cover none of it.  The UM Property Damage has a deductible of $200, a limit of $10,000 and cost me $9.70 a year. I am willing to bet the value of my Suburban that I won't wreck it, so I don't carry collision on it.  But for less than $10 to be covered if some drunk with no insurance totals it?  I am all over that.

Carrying the state minimum required liability limits on a motorcycle is a fool's errand, too. In most, if not all states, you are not allowed to provide yourself better coverage than you do anyone you hit, so your uninsured motorist coverage can't exceed your bodily injury liability limits. If your state requires $25,000 per person liability, and that is all you have, that is all you will have for uninsured motorist. That would not begin to cover your non-medical losses if you were seriously injured.  What if you had a passenger? I have reduced my limits since my kids are off my policy and my mileage has dropped to less than 8,000 miles a year, but I still have $250,000 per person $500,000 per accident so I can match that in uninsured motorist.  Why?  I have life insurance that will replace my income if I die. But what if I live but can't work?  What then?  $250,000 will only replace a few year's income, but it is better than nothing and gives us time to adjust and plan.  And if you happen to have a bad day and cause an accident that kills me, your $25,000 policy is not going to protect you from my very angry wife who will come after you for the last 10 years of my potential earnings, and any other expenses she had that exceeded your policy.  Your dreams of retirement are gone in a heartbeat.

I live in a rural area, and just about any accident while I am out and about will require a helicopter ride. $125 a year covers both my wife and I if we ever need it. I may go 10 years without using it, but at $125 a year, it would take decades to pay back the cost of a single flight, so I am willing to pay it.

Insurance is like dog food- the 25 pound bag is $20, but for just $7 more you can get 40 pounds. Additional liability, and additional uninsured motorist, is relatively cheap. Ask your agent, and then ask two others from competing companies. You will be surprised what an additional $50 a year will get you. And remember, insurance is to protect what you have, not a gamble of what you might have to pay. Cindy and I have scrimped and saved so we could have a comfortable retirement, and I am not willing to give that up to save a couple of bucks on coverage. If I never need it, it is not money wasted, it is an expense I was willing to pay  to make sure what I spent a lifetime culling together stays mine.

So please, think this over carefully. You don't want to wake up in the hospital, surrounded by your family and friends, and wish you hadn't survived so they would at least have the life insurance.

Ryan

[Dilliw]

If you are at fault in even a fender bender you can bet there will be some sort of legal action these days.  Just watch the morning news without skipping the commercials and you will understand (Dial All Nines!). In order to fit the lawyer's 40% in they will try all sorts of ways to get beyond your minimum liability converge.  So in addition to carrying additional liability coverage I would also talk to my agent to make sure there aren't any "backdoors" to increasing your liability.

[Rick in WNY]

Well, let me paint you all a picture from personal experience...

Little over four years ago, I was nearly kilt by a cager while on my motorcycle. Old dude, prior DWI, though he was sober at 9am on a Tuesday morning. His insurance was the NY minimum... all he had me covered for was $15,000. Thank God I had uninsured motorist coverage... because one week in the ICU, three weeks in the regular hospital, and two weeks in a rehab center learning how to walk again. Ended up with 15 different surgeries all told, one medical transport service bill, one ambulance ride, and a helicopter flight. I was over $200,000 worth of medical bills, thankfully, between the uninsured coverage and my medical insurance, I was covered in full.

This class of insurance is covering yourself in case someone else does something stupid and you get hurt. Yes, you could take them to court for damages. In my case, the guy that hit me had already lost everything from his prior DWI. He had a beater truck and was renting a crappy apartment that I likely wouldn't leave my dog in... so suing him, even if I won, he had nothing to pay me with, and I would have had a pile of bills to handle.

JMHO, YMMV

[kingoffleece]

Bingo.