Re: uninsured motorist

From: Avrum Lapin <avrum113@earthlink.net>
Subject: Re: uninsured motorist
Date: Sun, 31 May 1998 06:13:45 -0700 (PDT)

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At 3:48 PM -0600 5/29/98, persfin-digest wrote:
>Date: Tue, 26 May 1998 22:36:12 -0400
>Subject: auto insurance-uninsured/underinsured coverage
>
>I just received my auto insurance billing.  There seems to be some
>changes to the uninsured/underinsured coverage which got me wondering if
>this coverage is necessary.  My state has a law requiring all drivers to
>carry insurance.  I am a full time employee with paid hospitalization.
>I figure since the auto insurance's uninsured/underinsured coverage pays
>only medical benefits and probably after my hospitalization is first
>billed...just what's the reason for continuing the
>uninsured/underinsured coverage?.....What am I missing here, if
>anything?  The premium for this part is $150, am I wasting my money?

Depends on where you live.

CA has mandatory coverage (verified when you renew your tags but there are
about 20-25% of the cars running around without insurance. (they buy
insurance for registration and let it lapse by not making the payments).
The penalty for getting caught w/o insurance in CA can involve suspension
of your drivers license. Driving with a suspended license can result in the
car being impounded but if you lose a $400 car (still being financed) so
what.  Our local PD runs an impound lot as a revenue center.  Every week
the local Pick a Part comes and pays about $100 per old car (newer cars are
usually bailed out by the finance co which pays towing, $15/day for 30 days
plus an admin fee).

Does your hospitalization cover everything or is there a deductible for
such things as physio therapy done on an outpatient basis.

$150 seems high - suggests that there are a lot of uninsured motorists out
there.  My coverage costs about 20% of what my liability coverage costs.

Avrum Lapin
Upland., CA

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