In the interest of full disclosure, I am a licensed P&C agent and also a licensed adjuster in the state of Georgia. I now work as a Field Auditor and Fraud Investigator in the Commercial segment. But I maintain both licenses because I may want/need them some day and the exams were hard as hell! It also looks good on my resume.
When I was an agent, I always stressed the importance of Uninsured/Underinsured Motorist coverage to my customers. In Georgia, UM/UIM is available two ways- “Added On” (will pay up to policy limits regardless of any coverage or payment by the at-fault driver) or “Reduced By” (will pay up to policy limits minus any coverage the at-fault driver has). Either one is cheap for the coverage you get, but the ‘Reduced By’ coverage is dirt cheap. It amazed me how little coverage most of my new customers had with their previous insurer. Most insurance companies set the limits at 25/50/25 (state minimum) for UM/UIM unless the customer requests higher.
Back in 2010, my mom was involved in a nasty accident while driving my car. My grandmother was still alive at the time and I had to take her to the doctor that day. My mom was kind enough to loan me her Explorer whenever I had to take her anywhere because my Mazda3 sat so low to the ground and her wheelchair didn’t fit in my trunk. (I share that because the at-fault driver’s insurer wanted to know why a 35-year-old man’s mother was driving his car!) I told them it was none of their goddamn business!
Anyway, a 19-year-old twit rear-ended mom and knocked her into another vehicle at a red light. The airbag deployed in my car when she hit the car in front of her and she (mom) suffered numerous injuries. When all was said and done, my parents were out of pocket over $90k for medical expenses and lost wages. They didn’t ask for a cent more than that (no ‘pain and suffering’) and the insurance company’s offer never came close. We finally had to hire an attorney to deal with it and I hired the one that my insurance company hated the most! He managed to get a settlement for $160k ($110k after he took his cut) but the girl only had $100k/$300k liability limits. Her insurer cut a check for $100k and they were finished.
My insurance company paid the balance of $60k from my Underinsured Motorist coverage without question. The great thing about UM/UIM claims (and Comprehensive claims also) is that they don’t increase your rates. They are considered to be out of your control. It’s one of the few areas where insurance companies give customers a break!
You also mentioned that Uninsured Motorist will cover a hit-and-run, but that is only true in some states. In other states hit-and-run claims are only covered by Collision (if you have it) and the claim can increase your premium at renewal. I am in the minority among insurance professionals, but I think it is insane that we have a different insurance system in every state! I think uniform federal insurance regulations would be much simpler for customers and insurers alike.
Especially since you can drive across state lines with whatever shitty domestic insurance policy you’ve got. If I lived in a state with meaningful third party coverage requirements and I was hit by a driver with one of the shitty minimum required policies for Florida or Tennesseee or wherever I’d be pissed.
On a somewhat related note, I also think it’s insane that many US states (and the feds) have no roadworthiness testing requirements. I take my life in my hands every day because nothing in Florida law says the guy behind me has to demonstrate that his brakes work every few years. Unsurprisingly, the US has a much higher rate of traffic fatalities than other developed states.
I knew someone in high school. Kid with wealthy parents who kept totaling Corvettes. Once, by driving it with the check oil light on until it stopped moving forward.
Had to do the escrow thing because nobody would insure. Then got another car. A Corvette, as I recall.
Thanks for the information. I’m not an insurance professional, but I agree with you completely.
When my wife got hit by a red light runner, we had to hire an attorney to get the full amount of her medical costs. Not nearly as much as your mom’s - the construction of my old Saturn was such that though the car hit the driver side door she was only in the ER for a few hours. This despite the fact that the other car was clearly in the wrong and was a company car, covered by company insurance.
My hit and run, as I said, was when the car was parked. It was in Illinois 40 years ago, and I’m pretty sure UIM covered it. Never had the experience of a H&R while driving. My rates might have gone down because I aged out of the higher rate pool, but I was surprised and pleased by my next bill.
The good news is that whenever you cross state lines, your insurance policy must conform to that state’s minimum legal requirements if it doesn’t already.
I’ve thought about this but never actually checked until now. Only 19 states and DC require periodic safety inspections of vehicles. Two more states require safety inspections prior to sale or transfer of a vehicle. But that leaves 29 states that don’t have any sort of safety inspection requirement!
Emission testing is required in 31 states, although some aren’t state-wide requirements. Roughly half only require testing in specific major metropolitan areas. Here in Georgia, it is only required in Metro Atlanta (which is defined as Fulton County, where Atlanta is located, and all surrounding counties). The frequency of testing also varies. Some are annual and others bi-annual. Most also exempt vehicles for a certain number of years before testing is required.
If there was a consistent emission testing policy in place across all states, that would be the perfect time to require a safety inspection as well. Hell, even just testing the lights and turn signals would be a step in the right direction! Then again, it doesn’t matter if turn signals work or not since most people don’t know how to use them. :smack: