Car insurance question re: uninsured/underinsured motorist items

[Anonymous]

Oh you want uninsured -- It is to protect you!!!

not everyone follows the law. I was rear ended by a person with an unregistered car with no insurance. It had to go thru my policy under uninsured motorist. If I didn't have that, it would not have been covered.

[Anonymous]

Anonymous wrote:If insurance is required in order to have a car registered, why do states require you to have uninsured or underinsured motorist coverage? How did those people, if they exist, get away with not having the required insurance, and why are we being forced to pay more on their behalf? In fact, why are we not allowed to all just self insure if we want? I just moved to VA, my insurance rate went up a LOT due to their higher required minimums, and I am not happy. It feels like such a scam.

You also need it for people with minimal insurance. I was a PI lawyer and had to break the news to some folks.... If you're paralyzed and the other driver has $25k coverage and no assets then you're only getting $25k. Well worth it to have $500k UIUM insurance.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:In VA you can register your car then file an uninsured driver affidavit with the DMV and pay $500 fee to drive legally. Pretty economical if you're poor and judgment proof.

Thanks for the info. Sucks to pay $500 to the DMV for the “privilege” of self insuring. On the plus side, it is less than a year’s worth of insurance premium. No idea why you are referencing poor and judgment proof — what exactly is the judgment-worthy faux pas here? Btw wealthy people (not that I fall into that category either) have the least need for insurance, since they can comfortably pay out of pocket for any damages or losses.

No, wealthy people need insurance to protect their assets in case they cause and accident that makes someone a paraplegic or similar. PP meant a legal judgment that someone with no assets can't pay anyway.

OP here. Thanks for clarifying. Now I kind of get it. Though how often do people cause catastrophic accidents that lead to lawsuits? It still seems like a lot to pay every year to protect you just in case something very rare happens to you. I have been rear ended a couple of times, and I have rear ended others a couple of times, and the insurance payouts were probably equal to a year or two’s worth of insurance premiums max in the worst case, where the dented bumper belonged to a really expensive car. If you are worried about getting sued for a really large sum that would ruin you, the car insurance payout is limited and won’t prevent you from being financially ruined anyway, right? Also, can’t wealthy lower their risk by keeping their assets in trusts or llc’s or something else that (I assume) can’t be touched? Car accident are by no means the only type of thing someone can get sued for, and you can’t insure against everything, right? Anyway, I am just trying to decide what the cost/benefit is, and I am still not entirely convinced that it is money well spent if you are neither poor nor particularly wealthy but do have some assets.

[Anonymous]

Well you could self insure and then bump a hybrid vehicle, shatter their battery, then have to pay for it or the value of the now totaled vehicle. That will be more than a few years of premiums. You could also have a minor fender bender then have to hire your own lawyer because the other driver visited a chiropractor and is suing for $50k in medical bills.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:If you are worried about getting sued for a really large sum that would ruin you, the car insurance payout is limited and won’t prevent you from being financially ruined anyway, right? Also, can’t wealthy lower their risk by keeping their assets in trusts or llc’s or something else that (I assume) can’t be touched? Car accident are by no means the only type of thing someone can get sued for, and you can’t insure against everything, right? .

You can, it is called umbrella insurance

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:In VA you can register your car then file an uninsured driver affidavit with the DMV and pay $500 fee to drive legally. Pretty economical if you're poor and judgment proof.

Thanks for the info. Sucks to pay $500 to the DMV for the “privilege” of self insuring. On the plus side, it is less than a year’s worth of insurance premium. No idea why you are referencing poor and judgment proof — what exactly is the judgment-worthy faux pas here? Btw wealthy people (not that I fall into that category either) have the least need for insurance, since they can comfortably pay out of pocket for any damages or losses.

No, wealthy people need insurance to protect their assets in case they cause and accident that makes someone a paraplegic or similar. PP meant a legal judgment that someone with no assets can't pay anyway.

OP here. Thanks for clarifying. Now I kind of get it. Though how often do people cause catastrophic accidents that lead to lawsuits? It still seems like a lot to pay every year to protect you just in case something very rare happens to you. I have been rear ended a couple of times, and I have rear ended others a couple of times, and the insurance payouts were probably equal to a year or two’s worth of insurance premiums max in the worst case, where the dented bumper belonged to a really expensive car. If you are worried about getting sued for a really large sum that would ruin you, the car insurance payout is limited and won’t prevent you from being financially ruined anyway, right? Also, can’t wealthy lower their risk by keeping their assets in trusts or llc’s or something else that (I assume) can’t be touched? Car accident are by no means the only type of thing someone can get sued for, and you can’t insure against everything, right? Anyway, I am just trying to decide what the cost/benefit is, and I am still not entirely convinced that it is money well spent if you are neither poor nor particularly wealthy but do have some assets.

I could garnish your wages, empty your bank accounts, put liens on your real properties, etc. Drag you into court numerous times to try to open up your trusts and LLCs. If you aren't repped by insurance then I know you will pay a high price for me to go away.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:In VA you can register your car then file an uninsured driver affidavit with the DMV and pay $500 fee to drive legally. Pretty economical if you're poor and judgment proof.

Thanks for the info. Sucks to pay $500 to the DMV for the “privilege” of self insuring. On the plus side, it is less than a year’s worth of insurance premium. No idea why you are referencing poor and judgment proof — what exactly is the judgment-worthy faux pas here? Btw wealthy people (not that I fall into that category either) have the least need for insurance, since they can comfortably pay out of pocket for any damages or losses.

No, wealthy people need insurance to protect their assets in case they cause and accident that makes someone a paraplegic or similar. PP meant a legal judgment that someone with no assets can't pay anyway.

OP here. Thanks for clarifying. Now I kind of get it. Though how often do people cause catastrophic accidents that lead to lawsuits? It still seems like a lot to pay every year to protect you just in case something very rare happens to you. I have been rear ended a couple of times, and I have rear ended others a couple of times, and the insurance payouts were probably equal to a year or two’s worth of insurance premiums max in the worst case, where the dented bumper belonged to a really expensive car. If you are worried about getting sued for a really large sum that would ruin you, the car insurance payout is limited and won’t prevent you from being financially ruined anyway, right? Also, can’t wealthy lower their risk by keeping their assets in trusts or llc’s or something else that (I assume) can’t be touched? Car accident are by no means the only type of thing someone can get sued for, and you can’t insure against everything, right? Anyway, I am just trying to decide what the cost/benefit is, and I am still not entirely convinced that it is money well spent if you are neither poor nor particularly wealthy but do have some assets.

I could garnish your wages, empty your bank accounts, put liens on your real properties, etc. Drag you into court numerous times to try to open up your trusts and LLCs. If you aren't repped by insurance then I know you will pay a high price for me to go away.

And you will pay a much higher price for doing that because you will lose and pay my attorney fee