By Lawrence E. Mittin Esq.
The other day I added a streaming service so I could watch a show on my phone a day earlier than it was showing on TV. When I go to sleep, I like to watch shows on my phone. So for $5 a month, it is worth it to me to add this streaming service. I have more than one streaming service, so I am probably spending more than $20 a month for these services, but I like having access to shows on my phone so I can watch them whenever and wherever.
In today’s streaming age, most people have multiple streaming services for which they are okay paying $20 every month if not more, to be able to watch a show or movie whenever and wherever. However, when people are offered the chance to purchase uninsured motorist coverage (UM) coverage and underinsured motorist coverage (UIM) (you get both when paying the one premium for this coverage) for their vehicle for the same $20 a month, they routinely reject this coverage. The rationale is why should I pay for this UM/UIM coverage, as what benefit is this to me? Paying for liability coverage I have to do under the law and I have assets, so I will pay for more than the minimal coverage. Also, I want to protect my car, so I will get collision coverage. This UM/UIM coverage though, I do not even know what this is and my agent is letting me know if I have health insurance, I do not need this coverage. Even though the agent says that you do not need this UM/UIM coverage, this is insurance coverage where you have to sign a form in which you acknowledge rejecting UM/UIM coverage. So you sign the form and avoid paying the $20 a month for this UM/UIM coverage.
You are driving home when a drunk driver, who is watching a streaming service show on his phone, smashes into your vehicle and sends you to UMC Trauma with bad injuries. You have the health insurance for UMC, but you are going to have co-pays/deductibles you will owe from your pocket. As for the drunk driver, he only wanted to pay for the minimal liability insurance of $25,000 for any one person for injuries, bills, and lost wages; he did not want to pay any more money for insurance, as he needed that money for his streaming service shows. Your UMC bill alone is $50,000, but luckily with your health insurance you get a reduction and the health insurance pays all of your ER bills for a total of $25,000. Under the law, your health insurance has priority to get reimbursed from the drunk driver’s insurance. As such, the health insurance is allowed to take the entire $25,000 policy for the $25,000 it paid.
This is a horrific situation, as you are going to need medical care for your injuries; you will have work; and what about compensation for your pain and suffering? Unfortunately, the drunk driver only has $25,000 in insurance and your health insurance can legally take this entire $25,000. You not only get nothing for your pain and suffering, but also you are out thousands of dollars in co-pays/deductibles and lost wages. This is truly a nightmare come to life. Why did my insurance agent not explain to me how Click to Continue
