Got hit by an underinsured driver!

[jaedaliu]

I don't think insurance companies even offer that much for normal policies in the US. Maybe if you're insuring a Veyron, but otherwise that just seems insane to me.

The most my insurance company even offers on a normal policy is 300/500/100 and when I asked about it my agent said it was excessive and that no-one needed coverage that high. When a guy who works on commission tells you that you'll never need the higher priced option, that says something.

ZV

Yeah, the American standard seems to be to get umbrella coverage if you need to go that high. I guess if you live somewhere that you can expect to crash into 5 $1M cars, or plan on running your tank through someone's garage, living room, bedrooms, and kitchen, then the $5M for replacement of house may come into play.

 

[Midwayman]

Yeah, the American standard seems to be to get umbrella coverage if you need to go that high. I guess if you live somewhere that you can expect to crash into 5 $1M cars, or plan on running your tank through someone's garage, living room, bedrooms, and kitchen, then the $5M for replacement of house may come into play.

Its mostly for medical. Say you are found at fault for running a bus full of kids off the road and they all die/get seriously injured. You're looking at a ton of medical lawsuits for pain/suffering, medical bills, etc. My brother was in car accident where he and the driver were killed, but so was one of the other parties. Since it was our car they went after our insurance for close to a million with all sorts of charges.

 

[rommelrommel]

I don't think insurance companies even offer that much for normal policies in the US. Maybe if you're insuring a Veyron, but otherwise that just seems insane to me.

The most my insurance company even offers on a normal policy is 300/500/100 and when I asked about it my agent said it was excessive and that no-one needed coverage that high. When a guy who works on commission tells you that you'll never need the higher priced option, that says something.

ZV

Yeah, the American standard seems to be to get umbrella coverage if you need to go that high. I guess if you live somewhere that you can expect to crash into 5 $1M cars, or plan on running your tank through someone's garage, living room, bedrooms, and kitchen, then the $5M for replacement of house may come into play.

Its mostly for medical. Say you are found at fault for running a bus full of kids off the road and they all die/get seriously injured. You're looking at a ton of medical lawsuits for pain/suffering, medical bills, etc. My brother was in car accident where he and the driver were killed, but so was one of the other parties. Since it was our car they went after our insurance for close to a million with all sorts of charges.

Yup, it's all about medical. I have seen a good number of 2-4 million dollar settlements in the news over injuries. The brokers here highly recommend 2 million because serious claims are routinely exceeding 1 million.

 

[smackababy]

Uninsured Motorist Bodily Injury (UM) Coverage
Covers you for your bodily injury caused by a hit-and-run driver or an at-fault driver who has no auto liability insurance. Currently, Illinois law requires uninsured motorist limits of at least $20,000 per person and $40,000 per accident.
Uninsured Motorist Property Damage Insurance (UMPD)
Covers damage to your vehicle caused by an identified, at-fault, uninsured driver. This option is only offered if you choose not to purchase collision coverage. Currently, Illinois law requires that the company offer at least a $15,000 minimum with a $250 deductible.

From the department of insurance in Illinois. This will vary by state, but UMPD isn't even a thing if you have collision. If you're in a shared fault state its probably similar elsewhere.

I said underinsured, not uninsured.

 

[Zenmervolt]

I said underinsured, not uninsured.

I can't speak for other companies, but I've had Allstate in the past and State Farm now and both lump un/under-insured together as one thing. So if you have uninsured coverage with them, you also have underinsured coverage.

ZV

 

[smackababy]

I can't speak for other companies, but I've had Allstate in the past and State Farm now and both lump un/under-insured together as one thing. So if you have uninsured coverage with them, you also have underinsured coverage.

ZV

Geico has it as an additional feature (and charge, even though the minimum is only $1.30 over 6 months). I don't have much additional (25/50) underinsured, as that should only apply to myself, and that along with the minimum should cover enough cost for my car should something happen. Or, at least enough, that I can take the hit on the rest while I sue the driver for the remaining.

 

[Rebel44]

Yup, it's all about medical. I have seen a good number of 2-4 million dollar settlements in the news over injuries. The brokers here highly recommend 2 million because serious claims are routinely exceeding 1 million.

Same here + insurance compansate for lost income - so in case of death or disability that number alone can go over €1M per person.

Liability insurance coverage starts around €1.5M and standart policy can go up to €6M. Liability insurance for semi trailers, buses etc. go much much higher.

 

[jlee]

I don't think insurance companies even offer that much for normal policies in the US. Maybe if you're insuring a Veyron, but otherwise that just seems insane to me.

The most my insurance company even offers on a normal policy is 300/500/100 and when I asked about it my agent said it was excessive and that no-one needed coverage that high. When a guy who works on commission tells you that you'll never need the higher priced option, that says something.

ZV

My gf was surprised when she came here (from Alberta). Her policy is over $1mil as well.

 

[heymrdj]

If you don't have the coverage OP you're simply SOL. I mean you can attempt to sue, but even if you win, you'll never actually get a judgement executed that ends with you having some cash, and not just lining the pockets of involved lawyers. But you only had liability so that means you had the cash on hand to replace the car at any time right?

 

[Zorba]

Geico has it as an additional feature (and charge, even though the minimum is only $1.30 over 6 months). I don't have much additional (25/50) underinsured, as that should only apply to myself, and that along with the minimum should cover enough cost for my car should something happen. Or, at least enough, that I can take the hit on the rest while I sue the driver for the remaining.

Un/Under is for medical, not for property. You can tell by the limits, too, property limits are only one number where medical are two numbers (One Person/Total for Event).

Collision pays for property damage on un/under insured drivers.

 

[Zorba]

I don't think insurance companies even offer that much for normal policies in the US. Maybe if you're insuring a Veyron, but otherwise that just seems insane to me.

The most my insurance company even offers on a normal policy is 300/500/100 and when I asked about it my agent said it was excessive and that no-one needed coverage that high. When a guy who works on commission tells you that you'll never need the higher priced option, that says something.

ZV

Put someone in the ICU, that 300K goes out the window very quickly. I carry 100/300/100 plus a 1M umbrella. Last time I had a $2M umbrella quoted it was priced about 3x the $1M.

 

[Zenmervolt]

Collision pays for property damage on un/under insured drivers.

No. At least, not with State Farm.

There are two un-/under-insured additions to my policy. One for personal injury ($54.45/6 months) and one for property damage ($1.80/6 months).

Collision does NOT cover property damage from un-/under-insured drivers.

ZV

 

[fstime]

I don't think insurance companies even offer that much for normal policies in the US. Maybe if you're insuring a Veyron, but otherwise that just seems insane to me.

The most my insurance company even offers on a normal policy is 300/500/100 and when I asked about it my agent said it was excessive and that no-one needed coverage that high. When a guy who works on commission tells you that you'll never need the higher priced option, that says something.

ZV

Sure you do; get into an accident and cause severe injury or injuries or even kill someone and get ready for a lawsuit easily over 100K, 250K, or 500K.

If you don't have any assets worth protecting, you can make an argument, otherwise expect a marshall to knock on your door to inform you a lien is put on all your real estate until the case is resolved.

If you have a lot of assets, I wouldn't skimp on coverage, even better, get an umbrella policy for 2M+.

And you can get 1M liability policies in the US if you don't want to go the umbrella route, usually need to go through an agent though.

 

[Zenmervolt]

Sure you do; get into an accident and cause severe injury or injuries or even kill someone and get ready for a lawsuit easily over 100K, 250K, or 500K.

Or, better yet, don't drive like a dumbass in the first place.

If you don't have any assets worth protecting, you can make an argument, otherwise expect a marshall to knock on your door to inform you a lien is put on all your real estate until the case is resolved.

That's not how judicial liens work. You don't get a lien until after the case has settled. They don't grant liens prior to settlement.

But what would I know about the legal process. This certificate of bar admission doesn't really mean anything.

And you can get 1M liability policies in the US if you don't want to go the umbrella route, usually need to go through an agent though.

I do go through an agent. That's why I said my agent told me the 300/500/100 policy was excessive.

ZV

 

[fstime]

Or, better yet, don't drive like a dumbass in the first place.

ZV

Not very good logic there. It's called an "accident" for a reason.

Do you have your family under your policy? How can you be so sure everyone is as superb of a driver as yourself?

Someone who wants to protect their assets is not going to cheap out the measly ~$500 for a nice umbrella policy.

Like I said, if you don't have anything anyone can go after, go ahead with a moderate 250K/500K policy, poor decision otherwise.

I do go through an agent. That's why I said my agent told me the 300/500/100 policy was excessive.

Yes, that's not the point I was making. You said policies over 500K are not available through your company, but they are available through others which you usually need to go through an agent to acquire.

 

[smackababy]

Not very good logic there. It's called an "accident" for a reason.

And, calling it an accident is incredibly stupid. It implies nobody is at fault. Want to avoid having to use your insurance? Don't drive like an idiot. Sure, there may be an actually accident from some freak, out of your control incident. But, more than likely, you not paying attention or driving with excessive risk is what causes accidents.

 

[fstime]

And, calling it an accident is incredibly stupid. It implies nobody is at fault. Want to avoid having to use your insurance? Don't drive like an idiot. Sure, there may be an actually accident from some freak, out of your control incident. But, more than likely, you not paying attention or driving with excessive risk is what causes accidents.

Oh sorry, forgot not everyone can always be perfect like yourself. In fact, we should only allow perfect specimens like yourself to drive, then we can get rid of auto insurance all together and get rid of the 5th leading cause of death in the USA.

 

[rommelrommel]

And, calling it an accident is incredibly stupid. It implies nobody is at fault. Want to avoid having to use your insurance? Don't drive like an idiot. Sure, there may be an actually accident from some freak, out of your control incident. But, more than likely, you not paying attention or driving with excessive risk is what causes accidents.

Or, you could get hit by an idiot driver and have no witnesses and be deemed partially/totally at fault. You don't have insurance with the intention of using it, you hope that you don't need to.

 

[Zenmervolt]

Not very good logic there. It's called an "accident" for a reason.

The likelihood of a person driving within legal limits causing an accident that severe is staggeringly small. I might as well insure myself against lightning strikes or insure property in Montana against hurricane damage.

There are some risks that are too small to worry about.

Do you have your family under your policy? How can you be so sure everyone is as superb of a driver as yourself?

Because I'm single.

Yes, that's not the point I was making. You said policies over 500K are not available through your company, but they are available through others which you usually need to go through an agent to acquire.

So the reason my agent didn't mention these other policies that you claim are available only through agents is...?

And yes. I'm sure that the largest automotive insurance company in the United States is a horrible company to use as my baseline. The fact that the largest automotive insurer in the nation maxes out at 500k is surely not an indication that coverage beyond that is excessive for pretty much everyone and can only mean that they're some crappy, fly-by-night operation. I'll look into a policy from an overpriced, niche-market company through an independent broker right away.

ZV

 

[Zenmervolt]

Or, you could get hit by an idiot driver and have no witnesses and be deemed partially/totally at fault.

As my father says, "and if my aunt had nuts she'd be my uncle."

You can posit ridiculously unlikely hypotheticals if it pleases you to do so, but that doesn't make them even remotely likely to ever occur in the real world. Accident reconstruction is extremely good these days. You have better chances of being attacked by a shark than you do of having the scenario you describe actually play out.

ZV

 

[Midwayman]

As my father says, "and if my aunt had nuts she'd be my uncle."

You can posit ridiculously unlikely hypotheticals if it pleases you to do so, but that doesn't make them even remotely likely to ever occur in the real world. Accident reconstruction is extremely good these days. You have better chances of being attacked by a shark than you do of having the scenario you describe actually play out.

ZV

AYS? I've had a couple minor accidents where the other person just lied about what happened and despite being completely in the right, I ended up being deemed partially at fault. Maybe in a multi-million dollar accident a little more effort is given, but in my experience being in the right has little to do with who is deemed provably at fault.

 

[rommelrommel]

As my father says, "and if my aunt had nuts she'd be my uncle."

You can posit ridiculously unlikely hypotheticals if it pleases you to do so, but that doesn't make them even remotely likely to ever occur in the real world. Accident reconstruction is extremely good these days. You have better chances of being attacked by a shark than you do of having the scenario you describe actually play out.

ZV

Seeing as I actually did have it occur (guy blew a red light and hit me) I guess I'll keep my own counsel. God forbid anyone rustle your jimmies by suggesting that you might want to protect your assets with insurance.

Seeing as the only provider in my province available starts at 250k and maxes out at 5 million, and recommends 2 million....

Here's some info on Germany:

The minimum coverage defined by German law for car liability insurance / third party personal insurance is: 7.5 million euro for bodily injury (damage to people), 1 million euro for property damage and 50,000 euro for financial/fortune loss which is in no direct or indirect coherence with bodily injury or property damage. Insurance companies usually offer all-in/combined single limit insurances of 50 Million Euro or 100 Million Euro (about 141 Million Dollar) for bodily injury, property damage and other financial/fortune loss (usually with a bodily injury coverage limitation of 8 to 15 million euro for EACH bodily injured person).

And the UK:

Road Traffic Act Only Insurance differs from Third Party Only Insurance (detailed below) and is not often sold. It provides the very minimum cover to satisfy the requirements of the Act. For example Road Traffic Act Only Insurance has a limit of £1,000,000 for damage to third party property – third party only insurance typically has a greater limit for third party property damage. As a result of costly claims, insurance companies can now no longer place a limit on the amount that they are liable for in the event of a claim by 3rd parties against a legitimate policy.

And if you go look at the EU most of the member countries require you to have somewhere between 5 million Euro and completely unlimited policies.

But hey, the topic is obviously unworthy of discussion since you say that someone at state farm said you're cool with a fraction of what people in most countries carry.

 

[fstime]

And yes. I'm sure that the largest automotive insurance company in the United States is a horrible company to use as my baseline. The fact that the largest automotive insurer in the nation maxes out at 500k is surely not an indication that coverage beyond that is excessive for pretty much everyone and can only mean that they're some crappy, fly-by-night operation. I'll look into a policy from an overpriced, niche-market company through an independent broker right away.

ZV

The reason your company (but certainly not all) maxes out at 500K is because most people who have assets to protect and are looking for more coverage will purchase a separate umbrella policy which is supplemental to your auto and home insurance liability limits. I am sure your insurance policy offers umbrellas.

Umbrella policies are not uncommon, and do the same thing as choosing a policy over 500K (if available) in giving you additional coverage if you need it.

You only purchase insurance for things you cannot afford to replace. If there is a chance 500K+ can be taken from you in a single lawsuit, it is not unreasonable to spend a few hundred dollars on additional coverage.

If your assets are not valued high enough to justify this coverage, then you can also make an argument as is the case with many Americans.

The reason your logic is flawed is you are saying "this policy is good enough for everyone unless you drive a Veyron" or "don't always drive perfectly," way too much of a blanket statement.

 

[heymrdj]

I feel my accident a little over a year ago is a great example. Le me in a 2013 Civic LX with a few factory addons (Worth 18K), car is 9 months old. Other guy in a 1992 Grand Marquis station wagon. I'm in the farthest right lane, that forces a right turn in about 200ft, into a shopping center I need to get into. He's in the lane to the left. Suddenly he just veers into my lane, hits me broadside, and sends me into a ditch and into a phone pole, where a box is also mounted at the bottom of the pole.

My back is hurting, I'm disoriented, driver door can't open as it's been crushed in my the impact with the pole, and the guy is out of his car screaming that he didn't see me, sorry sorry are you ok ect. I end up getting removed by firemen and straight trip by ambulance to the hospital.

Obviously he admitted fault, that was easy. But he only had 30K of coverage. Thank god i had full covered with underinsured coverage. His car was totaled, my car was totaled. That was 21K there. The box at the base of the phone pole? 47K. Damaged sign, curb, and grass? 3K. Medical? 12K. Car rental reimbursement? 1K. Damaged property in car? 9K (work items)

Basically 100K accident for a 35mph impact involving someone merging into my lane and just 2 cars. I ended up missing all the parked cars in the parking lot I ended up in, and the one person who was in the parking lot was able to scurry out of the way soon enough. Had either of those two variables been involved, the cost would have skyrocketed.

 

[Rebel44]

Over here (Czechia) if liability coverage isnt high enough, insurance company of (at fault) driver still have to pay it - after that, they can try to recover that from the driver (good luck with that....).

Liability insurance is mandatory by law and you are charged automatic fee for each day your car is not insured. Minimum coverage for liability insurance is currecntly around €1.5M and will likely soon increased to €2M.