Umbrella Uninsured Motorist Coverage

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Kidneydoc
Posts: 50
Joined: Sun Mar 30, 2014 9:54 am

Re: Umbrella Uninsured Motorist Coverage

Post by Kidneydoc »

I have 5M umbrella with $2M UIM/UM coverage from a mid-tier company Hanover. Chubb/PURE definitely have UIM/UM coverage.I currently have disability insurance (not cheap as occupational specific) for $10,000/mo coverage, but am likely to drop it at age 55 as technically near FIRE. I bought extra UIM/UM coverage mainly for my spouse and 2 teenage drivers. Disability coverage phases out at age 65.

I am a physician. Healthcare/LTC prices in this country are crazy stupid. Not sure why all the controversy on UIM/UM on this post as dirt cheap compared to disability policy, and provides family coverage not individual coverage. Granted, umbrella is not equivalent to disability insurance but I figured auto is probably biggest contributor to disability.
MikeG62
Posts: 5065
Joined: Tue Nov 15, 2016 2:20 pm
Location: New Jersey

Re: Umbrella Uninsured Motorist Coverage

Post by MikeG62 »

This coverage should be thought about as not covering just you, but anyone in your car should you be involved in an accident with an uninsured or underinsured driver. I care about everyone in my car and not just myself.

I purchase the maximum coverage for this within my umbrella ($1.0 million within a $5.0 million umbrella).
Real Knowledge Comes Only From Experience
smackboy1
Posts: 1285
Joined: Wed Mar 14, 2007 9:41 pm

Re: Umbrella Uninsured Motorist Coverage

Post by smackboy1 »

MikeG62 wrote: Sat Nov 20, 2021 10:29 amThis coverage should be thought about as not covering just you, but anyone in your car should you be involved in an accident with an uninsured or underinsured driver. I care about everyone in my car and not just myself.
That's not the whole story. UM/UIM coverage protects the insured party's family against a UM/UIM driver. The insured party's own car is largely irrelevant. For example: the insured party's non-driver child could be walking across the street, riding a bike, on the bus etc.. If they are injured by an at-fault driver with none or inadequate liability insurance, the UM/UIM coverage provides a pot of money to pay out the claim.
Disclaimer: nothing written here should be taken as legal advice, but I did stay at a Holiday Inn Express last night.
D-Dog
Posts: 120
Joined: Sat Dec 01, 2007 11:44 pm

Re: Umbrella Uninsured Motorist Coverage

Post by D-Dog »

What if the uninsured or underinsured party is not a motorist? For example, someone in my family gets a head injury at someone else’s pool and needs lifelong care. If the person at fault doesn’t have a homeowners/umbrella policy with high enough limits to cover the lifelong cost of care, would my insurance cover this if I have uninsured motorist coverage? If not, what insurance would cover this scenario?
exodusNH
Posts: 10344
Joined: Wed Jan 06, 2021 7:21 pm

Re: Umbrella Uninsured Motorist Coverage

Post by exodusNH »

D-Dog wrote: Sat Nov 20, 2021 1:14 pm What if the uninsured or underinsured party is not a motorist? For example, someone in my family gets a head injury at someone else’s pool and needs lifelong care. If the person at fault doesn’t have a homeowners/umbrella policy with high enough limits to cover the lifelong cost of care, would my insurance cover this if I have uninsured motorist coverage? If not, what insurance would cover this scenario?
There no auto in that case.

It would be the homeowner's / renter's liability. If they didn't have insurance, you'd have to sue them, and probably wind up with very little. If the injured person had disability, that would cover wages (or a percentage), but that would do nothing for something like 24/7 care.

In that situation, the injured person spends down their assets until in poverty, then Medicaid would kick in to cover long-term care, probably in a facility you would not want to live in. Maybe they got lucky and got placed in a good facility while they could pay and then were able to transition to Medicaid.

We have all sorts of ways to extend life, but to very little to extend living. Hopefully something changes over the next 40 years, as this country is on the same aging path as Europe and Japan. One of the benefits of a robust immigration pipeline is that they're usually young.
oldfort
Posts: 2781
Joined: Mon Mar 02, 2020 7:45 pm

Re: Umbrella Uninsured Motorist Coverage

Post by oldfort »

D-Dog wrote: Sat Nov 20, 2021 1:14 pm What if the uninsured or underinsured party is not a motorist? For example, someone in my family gets a head injury at someone else’s pool and needs lifelong care. If the person at fault doesn’t have a homeowners/umbrella policy with high enough limits to cover the lifelong cost of care, would my insurance cover this if I have uninsured motorist coverage? If not, what insurance would cover this scenario?
PURE offers something called:
Uninsured Personal Liability Coverage. Members can purchase up to $1 million of coverage for protection against non-automobile
related incidents involving individuals who are not adequately insured.
Claim Scenario: A high-level executive was seriously injured as a result of a slip and fall on his neighbor’s property. The neighbor had only $300,000
in liability coverage — well below what the executive was legally entitled to recover.
https://assets.pureinsurance.com/pdfs/p ... -28-16.pdf
afan
Posts: 8192
Joined: Sun Jul 25, 2010 4:01 pm

Re: Umbrella Uninsured Motorist Coverage

Post by afan »

talzara wrote: Wed Nov 17, 2021 4:35 pm
afan wrote: Wed Nov 17, 2021 3:16 pm How much does this cost? Somewhere I got the idea that the cost of liability coverage was almost all of the umbrella premium. Did I remember wrong?
Excess uninsured/underinsured motorist coverage can increase the umbrella premium by 30% to 100%, depending on the company, state, and other factors.
Only 2 datapoints, but more than nothing:

Dropping my UM/UIM coverage would reduce my umbrella premium by less than 10%. In line with my vague recollection of checking ages ago.

Looking at RLI online quote system, adding the coverage increases the premium by about 11%.

In these two examples, UM/UIM represent a small part of the umbrella premium.

That is for one zip code, in one state, one set of risk factors and one umbrella coverage limit. With other facts the cost may be quite different
We don't know how to beat the market on a risk-adjusted basis, and we don't know anyone that does know either | --Swedroe | We assume that markets are efficient, that prices are right | --Fama
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