Do I need stacked uninsured motorist coverage?
May 16, 2014 9:04 AM   Subscribe

I'm trying to lower my car insurance rates and the rep with my insurance company suggested I drop stacked uninsured motorist coverage because I already have health insurance. I understand how the stacked coverage works but it seems redundant to carry it if I have heath insurance coverage. Am I misunderstanding how UIM coverage works?
posted by photoslob to Work & Money (4 answers total) 1 user marked this as a favorite
Best answer: I work for an insurance company.

Stacked uninsured motorist coverage means that if you have 2 cars at $100,000/$300,000 each, you can get up to $200,000/$600,000 if you get in an accident and the at-fault party doesn't have insurance (or has inadequate insurance, if this is a state where uninsured and underinsured are combined). If you drop the stacked to unstacked, then you'd have $100,000/$300,000 for an accident.

The difference between UM/UIM and health insurance is that UM/UIM will also pay for death/dismemberment/funeral expenses/potentially lost wages/potentially help around the house if you need that/home nursing/etc.

Hope that helps.
posted by Ms Vegetable at 9:26 AM on May 16, 2014 [2 favorites]

This sounds super niche. This is how insurance companies make their money: They sell you a policy that will cover you if X specific thing happens, under Y specific circumstances, and THEN they will give you scads of money. That very, very specific kind of insurance tends to not pay out much. It tends to be a good way for the insurance company to line its pockets.

General accidental injury coverage, to help with medical bills in case of all kinds of accidental injuries (not just in a car IF you are hit by an uninsured motorist) is much more likely to be worth the money it costs you. Or you could talk to your health insurance folks and get some idea of if they would cover you in a car accident. But I tend to see very niche kinds of insurance of this sort as mostly a waste of money for the consumer.

(FWIW, I used to work for an insurance company. I paid accidental injury claims, so I am familiar with that kind of insurance.)
posted by Michele in California at 9:31 AM on May 16, 2014

Response by poster: Ms Vegetable, that answers my question perfectly. Thank you!
posted by photoslob at 9:32 AM on May 16, 2014

Response by poster: Our stacked coverage only adds up to $70k or $80k and it's an additional $200 or so a year. Seems like it makes sense to keep paying for it.
posted by photoslob at 9:34 AM on May 16, 2014

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