Excess Uninsured Motorist Insurance Coverage

You have an umbrella insurance policy; therefore you understand the importance of protecting your assets.   An umbrella insurance policy is still the most affordable coverage, dollar for dollar that the insurance industry offers.  But, recently the insurance carriers have started making the coverage even better, by offering excess uninsured motorist insurance coverage on the umbrella.   Why is this important?

In Maryland, uninsured motorist insurance also includes underinsured motorist insurance coverage.  Uninsured motorist are those drivers on the roadways that do not have any liability insurance at all on their vehicle.  Yes, I know that the law requires them to have insurance coverage to get their tags, but there is still more motorist then any of us would like that are driving with no insurance coverage.  A recent study showed that about 14% of all vehicles on the roads in Maryland are not insured.  Underinsured motorists are those that have at least the state minimum requirements of $30,000 per person/$60,000 per accident and $15,000 property damage but carry less liability then you do.

Let me give you an example of how this coverage works:

Let’s say that you have $250,000 liability per person/$500,000 per accident and $100,000 property damage on your personal auto insurance policy and the uninsured motorist coverage is the same limits.   Then you have a standard $1,000,000 umbrella policy.

Let’s say, you are like my friend Jane, and you are hit by a motorist that is carrying $50,000 per person/$100,000 per accident and $25,000 property damage.   This person is not uninsured, but they would be considered underinsured in this case since their limits are lower than your limits.

If the other driver caused you injuries and loss wages that exceed the $50,000 under their policy, you would then be able to collect under your policy up to your $250,000 limit.   Even though you have an umbrella policy, your umbrella policy would not pay anything to you since you cannot be liable to yourself and your umbrella policy is a standard unendorsed umbrella insurance policy.

If you have uninsured motorist insurance coverage on your umbrella insurance policy, you would be entitled to collect up to $1,000,000 over the $250,000 limit from your auto insurance policy for you injuries.

Since, you already have an umbrella insurance policy, you have assets to protect and you understand the importance of this coverage.  Why would you want to give someone else more protection than you give yourself and your family?  Do you want to lose your assets because of someone else negligence?   Do you want to put faith in the “other guy” having the right protection, or do you want to rest assured that you will have the appropriate coverage if something happens?

The cost for this coverage varies by carrier but it is roughly $75 a year per vehicle.  Very inexpensive for $1,000,000 of additional coverage and peace of mind that it provides.

My friend Jane, that I mentioned earlier, she was T-boned by a guy with $50,000/$100,000 limits.   It was her and the two boys in the car.  Luckily the 2 boys escaped with scrapes, but Jane broke her right ankle and her left wrist.   She was taken to Shock trauma for surgery on her ankle and spent a few days there and then rehabilitation for a few weeks.  When she got home, they had to install a ramp because she could not walk on the ankle and with her wrist broken, crutches were out of picture.  She then had weeks of rehab and could not drive.   She was out of work for 5 months. The “other guys” $50,000 coverage was exhausted by the time she left Shock trauma. 

You know what that could do to you financially, which is why you carry high liability limits like Jane.  Six months after her accident her carrier began offering uninsured motorist coverage on the umbrella policy, Jane was one of the first clients to buy this coverage.  She knew first hand, if this accident would have been worse what it could have done to her savings and her family’s financial well being. 

Don’t have this happen to you and not have uninsured motorist coverage on your umbrella insurance policy.  Call us today to add this coverage.  For 2 vehicles, it is about $150 a year for $1,000,000 of protection.

Nancy Nicklow is the owner President of Huff Insurance,a full service Independent Insurance Agent . We have been dedicated to Protecting Lifestyles™ since 1960.  We offer a full array of Personal Insurance, Commercial Insurance and Life Insurance & Health Insurance products.  Call us at 410-647-1111