Involved in a car accident. Who to file your claim with?
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Regarding uninsured/underinsured motorist coverage. Generally, this does not cover physical damage to your vehicle unless you choose "UM/UIM PD" coverage in addition.
UM/UIM is generally to protect YOU and those in your vehicle for the damage that a uninsured or underinsured (as in your above example) driver causes to you or those in your vehicle
It's always a good idea to carry UM/UIM coverage because there are so many irresponsible people out there. If you can no longer work or are permanently impaired, that money can go along ways to help you and your family.
I understand that but the coverage premise is based around the fact that many are uninsured or underinsured. Why not raise the minimum laibility high enough for other underinsured driver's so I dont need to pay a seperate policy just to protect myself against them. It's comical that a lot of states including mine have a $5,000 minimum liability for property damage. Getting uninsured drivers off the road is another story.
Whether you want the physical damage coverage protection for UM/UIM is a personal choice. You are already carrying comp/collision so your vehicle would be covered.
The real concern is when you have a bit older vehicle that you choose not to cover for comp/collision. Then if that uninsured or underinsured driver hits you and its their fault, you are now stuck without a vehicle and must now fork over cash for a new one out of your own pocket or go get a loan to buy one.
On my current vehicle I don't cover UM/UIM PD because my car is older and not worth it to begin with.
So, if I'm in decent financial shape and carry full coverage, I don't buy UM/UIM PD. But I would ALWAYS buy UM/UIM coverage with auto insurance.
It is fairly inexpensive and covers you for the catastrophic and let's be clear......catastrophic is really why we buy insurance.
1. I agree with you and I realize that the laws are ridiculous. the minimum liability required is much, much too low. That's why it's important to have a good, responsible agent. That still doesn't prevent people from driving without insurance at all in the first place. Thus the need.
Also, even if you carry, let's say, $250,000 of liability coverage and but I am disabled permanently and have hundreds of thousands of medical bills caused by you, there is obviously still an underinsured situation.
It's not a one sized fits all deal and is still a valuable coverage. But yes, I agree 100%, the crazy low liability limit requirements are horrible.
2. Yep, that's the way it is designed. Just know that if you are hit by an uninsured driver you are out of a vehicle. so long as you are aware and able to with stand that financial hit, then you are golden.
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