Uninsured, Underinsured coverage on Auto Insurance

steelfrank

New Member
4
Not an agent, redoing my auto insurance through State Farm. I am increasing my uninsured and underinsured coverage to $250,000 for each individual and $500,000 for each accident (I am doing this on both of the cars my wife and I own) and my agent advised me to "stack" the coverages. As I understand it that would essentially allow me to double each coverage ($500,000 individual and $1,000,000 for each accident) because I would be able to use the coverage from each car if I needed. The problem for me is the cost is so high and I already have what State Farm calls "Q" coverage for a million $ to pay for medical expenses and medically related costs in case of a debilitating accident, so I view this "stacking" as almost a double coverage I don't really need. I want to be covered in case of a debilitating accident (my wife does a good bit of driving for her job and we really depend on two salaries to pay for our living exspenses) but I feel this is overkill. Any advice would be greatly appreciated.
 
I could be wrong on this but I doubt it.....I seldom am.

They are two separate coverages; one will pay out first in the case of an uninsured motorist causing you or wife bodily injury. I believe med pay will pay out first. Stacking UM coverage is rather inexpensive in some states to get additional coverage. (not Florida though..its expensive in my opinion)

Generally, med pay will pay regardless of who is at fault and does not require another party to the accident. UM coverage requires the other party to be at fault AND be un/underinsured. All this depends on the state and whatever SF plan says. Overkill? maybe. I would tell SF agent exactly what is on your mind. Give him a couple of scenarios then do the math.
 
it would cost about $128 per year for both cars. It is by far and away the most expensive of the "extra" coverages I own.
 
Actually, that's not bad for the coverage you add. Depends on where you are at but there are MANY idiots out there driving without coverage that will run a red light (running from the cops) and T-Bone you. Months maybe years of rehab. I'm not trying to scare you into the protection. This happens.

In this scenario your auto coverage pays first; med pay, UM, then your health policy. Maybe it is overkill. There is no magic formula for how much coverage you should have.
 
The higher liability limits are usually purchased, if a person has home,stocks in market or any type of real estate. The Uninsured Motorist and Underinsured Motorist Bodily injury and property damage coverages apply to you, not to the other party in case of an accident.If the other party doesn't have insurance,that's the amount of money your company will pay for bodily injuries!!!
As far as the $1M coverage you have on your State Farm policy,I'd recommend you to have an Umbrella policy,instead of increasing your liability coverages to a million.

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