Do You REALLY Need Uninsured Motorist Coverage?

Do you REALLY Need Uninsured Motorist Coverage? Or is it just another way for an insurance agent to make your policy more expensive? THE TRUTH EXPOSED in this episode.
#AskWoodyWednesday
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Hi! My name is Woody Brown (yes, that's my real name). I live somewhere in-between city and hills just north of Atlanta, Georgia. New videos on my channel EVERY SINGLE DAY!
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[@jesusisking0123]

You don't need uninsured motorist coverage.

[@SpynCycle57]

I've never seen an uninsured/underinsured policy that covers property damage.

[@WoodyBrown]

You will definitely want to explore your policy jacket to read/review the policy terms for your state’s specific coverage. Uninsured/Underinsured here in Georgia is designed specifically to cover the insureds vehicle if/when the other at-fault party’s policy limits are exceeded. So, the property damage to your vehicle (here in Georgia) is what the coverage is for - along with any bodily injury you may have as well that go above the at-fault party’s BI limits. Certainly worth giving your current agent a call to make sure you understand how your own policy in your state works and covers you though :) Thank you for watching!

[@SpynCycle57]

@@WoodyBrown Isn't that what Collision coverage is for?

[@WoodyBrown]

​@@SpynCycle57 speaking in general terms since auto ins policies differ from state to state: but yes Collision is designed to cover damage to your vehicle regardless of who is at fault. That Collision claim however will certainly affect your rate differently than an uninsured motorist claim. Also, you'll want to review whether your uninsured motorist coverage on your current policy would be used in a hit-and-run scenario. Generally, that would be a comp claim if not (again affecting future rates differently) Ultimately having coverage for the potential bodily injury for you and your passengers is the piece of the coverage that matters most to me as an insurance agent, when advising customers. Having that protection is vital, in my experience.

[@aireonathompson2691]

@@SpynCycle57 This was my same thought too?

[@tedlawrence1348]

So, scare tactics ? What are the % of accidents that happen that are involved with Uninsured Motorist? And of those what % actually resulted in a case where the Uninsured Motorist coverage would have covered the issue. I bet the risk is pretty low overall. If insurance companies had good will they would add the coverage for free. Seems it's just another way to take money.

[@WoodyBrown]

In the state of Georgia, I believe it's between 12-13% of drivers driving around uninsured according to iii.org. Depending on the state you live in - that can vary from 7.4% (South Dakota) or as high as 29.4% (Mississippi). That's just the % of people driving without insurance entirely. But, a better question would perhaps be: how many people are driving around with insurance liability limits that won't pay enough for the injuries they cause me (and my passengers) AND the damage to my vehicle. I wouldn't think of it as a scare tactic - rather I would encourage you to think about the % of your own personal NET worth that you have set aside ready to pay for the out-of-pocket costs if you're hit by that driver...who either has ZERO insurance or is driving around with State minimum limits. Uninsured Motorist coverage is not a required coverage to have - but, for the cost, it's essentially a no-brainer to have it. That is, if you're concerned with protecting the $ you work hard for.

[@tedlawrence1348]

@@WoodyBrown Still no real factual statistics reported that one can evaluate ones risk. How likely that one would be involved in such an accident. Is the risk incident greater than being struck by lighting or shot by a random shooter? Of course, agents are trained by their marketing folks to sale insurance. Still not convinced. Also, you're only talking about an incident of magnitude not typical fender binder. So, another question. What percentage of your insurance company clients have made a claim where the additional insurance coverage were paid out. I bet the insurance company see this as a big money maker. Low risk for them. Still think it is light snake oil..

[@WoodyBrown]

​​ @Ted Lawrence well depending on the state you live in you may not be required to carry it - so, sounds like you can self-insure based on your own statistical analysis and risk management capabilities. You may want to look into whatever statistics you are using and consider "real" though - is my friendly advice!

[@tedlawrence1348]

@@WoodyBrown My point exactly. I don't have any resources statistical analysis and risk management capabilities. As such, from your response. Neither do you or your insurance company can provide clear risk information either. Numbers quoted about the number of folks that are uninsured etc. Does not tell me how likely that 12 to 13% of uninsured will crash into me and cause such an issue where the additional rider on my umbrella policy will likely be needed.

[@WoodyBrown]

@@tedlawrence1348 I think you’ve missed the point here of you think an individual insurance agent would have access to the statistical probability that you as an individual would likely be in an accident caused by an uninsured or underinsured motorist. You’re correct that I wouldn’t have that information for you. However, that’s what an insurance rate is - the rate based on the likelihood of you being in a claim scenario for hundreds of data points. That’s precisely why you, me, and farmer John all will have 3 different auto rates even if we used the same vehicle, at the same address to get a quote. All 3 rates would be individual. That’s also the reason those coverages aren’t a blanket price / they’re also rated accordingly. You misunderstood any previous responses. Those stats are available, however - my encouragement is for you to look them up yourself if you’re interested in self evaluating your risk and insuring accordingly. Good luck & God speed 👍🏼

[@johncarlson6472]

So, if I'm hit by an uninsured motorist and need medical care, my health insurance company is going to deny paying for my medical care and tell me to "go kick rocks"?

[@WoodyBrown]

Not necessarily, however there is potential for there to be plenty of waiting time on your behalf to get any of the medical procedures “approved” by the health ins company. Then there’s your health insurance deductible and “annual max” that you’d need to meet. Also - you’d need to worry about “in-network” Vs “out of network” care. -Or- Generally your Uninsured Motorist coverage a-lots you the $ you have selected as your coverage limit and takes the out of pocket expense down to almost nothing. For example - if your annual deductible and out of pocket max for your health ins is $5k or more…in contrast you’d pay $250 as your uninsured motorist deductible (unless you chose $0) There aren’t stipulations with regard to your physician of choice, procedures needed or covered, etc. I always recommend it.

[@johncarlson6472]

@@WoodyBrown Hi Woody. Thanks for the response. I get what your saying, but a couple things bother me. Nearly ALL articles/vlogs regarding "should I get UM/UIM" are SURPRISE!, by Insurance Brokers, Agents and/or Attorneys, and unsurprisingly, they all say "load up." California (my home State) is a comically notorious "save the planet/save the people from themselves" police-State, yet waives requiring UM/UIM coverage? Why would such a "let's keep everyone safe!" State do that? I searched and searched for ONE single article/vlog that answers WHY MOST STATES DON'T require UM/UIM coverage and couldn't find ONE. Nada. Are the non-UM/UIM requiring States leaders just callous morons who like putting people in imminent danger by waiving UM/UIM, or is it possible they crunched the numbers and figured out why UM/UIM is so cheap to begin with ($10 to $15 a month)? My money (pardon the pun) says, when one does objectively crunch the numbers, in spite of the "terrifying" (cough!) 1 in 8 drivers not having insurance, the statistical likelihood of a good driver having a car accident WITH an uninsured driver is EXOTICALLY unlikely...and consequently makes that "hey, it's only $15 more a month ($108,000.00 over a lifetime), you'll be sorry if you don't" payment exposed for what it just might be...another padded-up fee to bilk the masses out of their hard-earned money through instilling erroneous fear. Lundegaard: "Yeah, but that TruCoat...You don't get it, you get oxidation problems, it's gonna cost you a heck of a lot more than $500." kzbin.info/www/bejne/eGOvfXVveKyZgtU

[@CraigOgamus]

@@johncarlson6472u are one smart buck a roo.

[@jkyoft78]

Doesn't health insurance cover injuries from a car accident?