auto insurance medical coverage question

[livendive 8]

So I'm looking to buy my daughter a decent car for her high school graduation next month. Not something brand new, but late model, low mileage, dependable, and at least a bit "cool", so I'll in all likelihood be financing it. I'm already helping her with insurance, but it's not the full coverage that will be required on a financed vehicle, just liability, underinsured motorist, and medical. I was kinda amazed at the cost of adding her to my policy, as she has a clean (albeit only a little over a year long) driving record. I'm looking at the policy and wondering where I can cut costs, and the medical jumps out at me. For me, that coverage is kind of a nevermind...like $70/year, but for her it's nearly $350. What I'm wondering about is the usefullness of it. I've already got her on my regular healthcare insurance, so do we actually need medical coverage on our auto insurance? Do normal healthcare policies exclude payment for injuries sustained in an at-fault accident? Or is the primary benefit of automobile medical coverage for those who don't have regular health insurance?

Anyone know enough about insurance to tell me whether I'm just paying for overlapping coverage?

Blues,
Dave

"I AM A PROFESSIONAL EXTREME ATHLETE!"
(drink Mountain Dew)

[monkycndo 0]

Dave, medical is also for someone she might injure. Get the coverage.

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[livendive 8]

Quote

Dave, medical is also for someone she might injure. Get the coverage.

Anyone else she might injure would be covered under the bodily injury liability, right? And the underinsured motorist covers her if someone without insurance hurts her. If she hurts herself, my regular healthcare ought to cover it, so I just don't understand the value of the personal injury protection. Right now she's got (w/ prices per 6 months):

BODILY INJURY LIABILITY $50,000/$100,000 - $347.80
PROPERTY DAMAGE LIABILITY $50,000 - $264.00
BASIC PERSONAL INJURY PROTECTION $35,000 - $173.70
UNDERINSURED MOTORIST BODILY INJURY $50,000/$100,000 - $41.10
UNDERINSURED MOTORIST PROPERTY DAMAGE $20,000 - $19.60

Blues,
Dave

"I AM A PROFESSIONAL EXTREME ATHLETE!"
(drink Mountain Dew)

[lawrocket 3]

Dave:

Much of the questions you are asking depend on the state, and I don't know what Washington requires.

I dont' know whether Washington would have her health insurance cover her accidents. Some of this depends on the nature of the insurance contract you have. Look at it and find out.

My thoughts are that the coverage for the health in accident is probably for those without health insurance.

Another thing I would think of is this - see about getting some kind of umbrella coverage for yourself. If she is at-fault in an accident, it can open you up to liability for negligent entrustment since you are taking a lot of responsibility for the payment, etc. of the vehicle. It would be wise to have yourself insured, as well, and that type of insurance is pretty cheap.

My wife is hotter than your wife.

[NWFlyer 2]

Personal Injury Protection is no-fault insurance. Meaning it gets paid out right away, where liability coverage waits for the settlement process.

When I got hit by a car we ended up with three insurance companies involved: my health insurance, my auto insurance and his auto insurance.

My health insurance was the first payer, but of course, they're going to go after the auto insurers for payment. So, they paid the enormo hospital bill, then immediately grabbed the PIP money from my auto insurance company, then sit and wait for the settlement to get the rest.

I then decided that my health plan wasn't giving me the level of rehab care I wanted, and I went outside of the health plan for coverage. So, they don't have to pay any more since I'm going outside the network for my care. All the PIP money is gone, and the liability money won't pay out until liability is determined and a settlement is reached, so I had to pay for coverage out of pocket until the settlement. Not cheap.

The way it was explained to me is that it's kind of a slush fund of immediately-available money to cover medical care needs.

Depending on how flexible your health plan is, you may find that declining the PIP for your daughter makes sense (especially at that cost ... I think mine's like $35 a year for basic, which, IIRC is only $10K in coverage). I'd recommend that you give a call to your auto and health insurance companies to get a better sense of whether you will ever actually need that money.

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